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0:00:00.0 Tokio Marine Group Mid-Term Business Plan “To Be a Good Company 2017” FY2016 Business Plan May 2016 Tokio Marine Holdings, Inc. Table of Contents Ⅰ Tokio Marine Group Business Strategy 1. Progress of the Mid-Term Business Plan 2. ERM & Shareholder Returns Ⅱ Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Reference ◆Abbreviations used in this material TMNF : Tokio Marine & Nichido Fire Insurance Co., Ltd. NF : Nisshin Fire & Marine Insurance Co., Ltd. TMNL : Tokio Marine & Nichido Life Insurance Co., Ltd. FL : Former Tokio Marine & Nichido Financial Life Insurance Co., Ltd. Copyright (c) 2016 Tokio Marine Holdings, Inc. 1 Ⅰ Tokio Marine Group Business Strategy Copyright (c) 2016 Tokio Marine Holdings, Inc. 2 Ⅰ. Tokio Marine Group Business Strategy 1. Progress of the Mid-Term Business Plan 2.ERM & Shareholder Returns Copyright (c) 2016 Tokio Marine Holdings, Inc. 3 1-1. Objectives of the Mid-Term Business Plan Mid-Term Business Plan “To Be a Good Company 2017” ~Evolve business structure to realize sustainable profit growth and higher ROE~ Group total FY2017 outlook Enhance capital efficiency Sustainable profit growth Enhance shareholder returns Adjusted ROE : Upper 9% range *1 Adjusted Net Income : approx. ¥400B *1 Steady growth of dividends in line with profit growth *1: Released in Nov. 2015 Based on market environment as of the end of Mar. 2015 Business Unit Profits Domestic Non-Life (TMNF) CAGR approx. +3% approx. (billions of yen) Domestic Life (TMNL) CAGR*3 approx. +8% (billions of yen) International Insurance CAGR approx. +8% approx. (billions of yen) + 120 125 2014 Normalized basis *2 2017 Plan 2014 1,037.3 Year-end MCEV Increase in MCEV *2: FX effects are excluded and natural catastrophe losses is normalized to an average annual level Copyright (c) 2016 Tokio Marine Holdings, Inc. 2017 Plan Approx. 1,300 100 *3: CAGR of MCEV 2014 Normalized basis *4 2017 Plan - *4: FX rate is as of the end of Mar. 2015, and natural catastrophe losses is normalized to an average annual level 4 1-2. Progress of the Mid-Term Business Plan Steady progress of the Mid-Term Business Plan   Achieved steady growth in FY2015, in line with the Plan Aim for further profit growth in FY2016 Projecting dividend increase backed by our solid earnings power   FY2015 annual dividends per share is planned to be ¥110, an increase by ¥15 YoY FY2016 annual dividends per share is projected to be ¥135, an increase by ¥25 YoY, due to the profit contribution by HCC, etc. Projected to increase by ¥36.1B YoY to ¥388B due to profit contribution by HCC and the progress of the growth strategies in the Mid-Term Business Plan, despite the reversal effect of temporary increase in gains on sales of securities in FY2015 2015 2016 Projections Net incurred losses relating to natural catastrophes (before tax, billions of yen) Domestic Non-Life International Insurance Total Sustainable profit growth Adjusted Net Income (billions of yen) +36.1 323.3 351.9 388.0 77.4 15.7 93.1 48.0 47.0 95.0 Net Income (financial accounting) 2014 247.4 2015 254.5 2016 Projections 265.0 Enhance capital efficiency Adjusted ROE 8.9% +1.4pt 9.1% 10.5% Projected to increase by 1.4pts YoY to 10.5% due to profit contribution by HCC as well as a decrease in adjusted net assets associated with the decline in stock price and the appreciation of the yen, etc. 2014 ROE (financial accounting) 7.9% 2015 7.2% 2016 Projections 7.5% Enhance shareholder returns Copyright (c) 2016 Tokio Marine Holdings, Inc. Dividends Per Share ( yen) +25 (planned) 110 (projections) 135 Projecting dividend increase for 5 consecutive years in line with profit growth Annual dividend is projected to be ¥135 per share (+ ¥25 YoY per share) 95 2014 2015 2016 Projections 5 1-3. Contribution by HCC Impact on adjusted ROE : +2.3pts Adjusted ROE Impact on adjusted EPS : +13% Adjusted EPS 10.5% 8.2% ¥452 ¥514 2016 Projections (excluding HCC) 2016 Projections (including HCC) 2016 Projections (excluding HCC) 2016 Projections (including HCC) Further diversifying risks globally, leading to a more stable group business foundation Insurance Premiums *1 International 35% 71% 26% 2016 Projections 65% (including HCC) Business Unit Profits *2 International 43% 8% HCC Domestic 12% HCC Domestic 29% 36% 64% 2016 Projections (excluding HCC) 2016 Projections (excluding HCC) 31% 2016 Projections (including HCC) 57% Copyright (c) 2016 Tokio Marine Holdings, Inc. *1: Net premiums written + life insurance premiums *2: Domestic businesses include domestic non-life, domestic life, and financial and general 6 1-4. Creating group synergies (1) Pursuing synergies by leveraging the Group's global footprint, high expertise of each group company, and its financial strengths, etc. Global Footprint • Wide network in both developed and emerging countries • Strong customer base Expertise of each group company • Strong underwriting technical expertise • Leading positions in the market and specific areas Synergy Creation Revenue <Examples> Overseas Japan  Providing specialty products of HCC and Philadelphia, etc. to Japanese corporate customers and cross selling through each company's sales network  Joint underwriting of insurance program by Tokio Marine Kiln, HCC and Tokio Marine Insurance Singapore coordinated by Tokio Marine Asia, at a large-scale commercial event in Asia  Joint product development by leveraging the knowhow at Tokio Marine Kiln Copyright (c) 2016 Tokio Marine Holdings, Inc.  Establishing global underwriting capability for D&O, etc. utilizing know-how at HCC  Support for Japanese corporations expanding businesses abroad by utilizing overseas experiences and know-how 7 1-5. Creating group synergies (2) • Investment Enhancing investment return through Delphi’s superior investment expertise Entrust the asset management of a portion of assets held by the Group companies* to Delphi with high investment expertise * Asset management entrusted to Delphi Philadelphia (from Jul. 2014), Tokio Millennium Re (from Jul. 2015), TMNF (from Jan. 2016), HCC (from Mar. 2016) • Capital Optimizing retention strategy and outward reinsurance on a Group basis Expand underwriting capacity of each Group company leveraging the Group’s risk diversification effect Reduce cost of outward reinsurance through intra-Group reinsurance, leveraging the Group’s financial strengths • • Cost Cost reduction through effective use of the Group resources and scale merit Cost reduction by joint purchase of IT system, etc. Optimize resources due to delisting of company purchased and utilizing shared services • Copyright (c) 2016 Tokio Marine Holdings, Inc. 8 1-6. Further integration and alignment in Group decision making Establish Group Chief Officer positions and committees as well as strengthen its functions to globalize and strengthen Group management system  Involvement of top management at overseas subsidiaries in solving Group management issues with their expertise  More focus by the Group CEO on Group management to maximize the Group’s comprehensive capability  Globalization and Strengthening Maximize the Group’s comprehensive capabilities Financial and General Group CEO Group Chief officer (by order of organization) More focus on Group management by the Group CEO Dept. in charge Domestic Non-life Domestic Life International Insurance CRDO Research and Development Research and Development Financial Planning Corporate Planning Global Retention Strategy Human Resources IT Planning Risk Management Committees Major management issues Risk management Asset management IT Retention strategies ,etc. CIO Investment • Enhancing group governance • Utilization of the Group management resources • Involvement in the Group management by overseas talent CFO Financial CRSO Retention Strategy CHRO Human Resources CITO Information Technology CRO Risk Copyright (c) 2016 Tokio Marine Holdings, Inc. Involvement of top management at overseas subsidiaries 9 Ⅰ. Tokio Marine Group Business Strategy 1. Progress of the Mid-Term Business Plan 2.ERM & Shareholder Returns Copyright (c) 2016 Tokio Marine Holdings, Inc. 10 2-1. Promoting Strong ERM (Controlling Risk and Capital) Maintain financial soundness Balance capital and risk to maintain AA credit ratings • • Advance natural catastrophe risk management Ensure our financial base can withstand catastrophic risks Enhance profitability × Sustainable profit growth and enhance capital efficiency • • • Invest in businesses which enhance capital efficiency Improve the profitability of existing businesses Continue to sell business-related equities Control risk and capital in accordance with risk appetite* * Insurance risk control : Pursue sustainable growth, risk diversification (stabilization), and improvement of capital efficiency through global business expansion Investment risk control : Secure liquid assets and stable profits mainly through ALM    Comfortable level of ESR calculated based on 99.95% VaR is 100~130% in light of financial soundness and profitability, and current ESR is sufficient for maintaining financial soundness Business continuity is confirmed even in the event of stress scenario When ESR becomes below 100%, confirm the necessity of action with consideration of the outlook of future profit accumulation and restricted capital Utilize capital buffer 130%*1 *1: Capital level which can maintain AA credit ratings withstanding once-in-a-decade risks • Invest in businesses for growth and take additional risks • Repurchase shares • Prepare for regulation changes and significant changes in business environment 106%*2 Comfortable Level as of the end of Mar. 2016 *2: 128% at 99.5% VaR Confirm the necessity of action Consider to recover capital level Consider the below with consideration of the outlook of future profit accumulation and restricted capital •Refrain from investment in businesses and additional risk-taking •Consider risk reduction measures Copyright (c) 2016 Tokio Marine Holdings, Inc. 100% ESR 99.95% VaR 11 2-2. Promoting Strong ERM (Disciplined Capital Management)   Utilize strict capital model which calculates risk capital based on 99.95%VaR (standard to maintain AA credit rating) and excludes restricted capital, while referring to the method in Solvency Ⅱin Europe, etc. Reflected recent negative interest rate in calculating risk capital  Economic Solvency Ratio (ESR) 111% Factors of changes in net asset value  Contribution of 2H FY15 adjusted net income  Decrease in unrealized gains of business-related equities  Decrease in MCEV associated with etc. interest rate decline  Impact of market changes on ESR and our measures 106%* * 128% at 99.5% VaR — Share price: Continue to sell business-related equities as the impact on ESR associated with the market value fluctuation is large Risk capital Net asset value trillion yen 2.8 3.1 trillion yen Factors of changes in risk capital  Sales of business-related equities  Decrease in risks of business-related equities due to decline in share price  Increase in interest rate risks due to etc. decline in interest rates Risk capital Net asset value — Interest rates: Impact on ESR increased due to the decline of interest rate. While preparing for the future rise in interest rate, control the impact of interest rate fluctuation through ALM — FX rates: Limited impact on ESR, as appreciation of the yen decreases net asset of overseas subsidiaries, whereas decreases FX risks. Policy is to basically limit FX risks trillion yen trillion yen 2.9 3.0 Mar. 31, 2016 106% 115% 96% 110% 103% Sept. 30, 2015 Mar. 31, 2016 Share Price +30% -30% Interest Rate +10bp ¥17,388 Nikkei Stock Average ¥16,758  Net Asset Value Net Asset Value = Consolidated net asset on financial accounting basis + Liability of capital nature (catastrophe loss reserves, price fluctuation reserves, etc.) (after-tax basis) goodwill, etc. -10bp Copyright (c) 2016 Tokio Marine Holdings, Inc. Planned distribution to shareholders Value of life + insurance policies in-force Restricted capital, etc. 12 2-3. Shareholder Returns  Our primary means of shareholder returns is dividends, which we plan to increase in line with profit growth Steady growth of dividends  We pursue steady growth of dividends, and payout ratio as a guide is above 35% of average adjusted net income - FY2015 : Projection for year-end dividends is revised upward by ¥5 to ¥57.5 per share, and annual dividends is planned to increase by ¥15 YoY to ¥110 - FY2016 : Annual dividends is projected to increase by ¥25 YoY to ¥135 per share (payout ratio* of 35%), an increase for five consecutive years *payout ratio to average adjusted net income + Flexible share repurchases  We intend to conduct share repurchases in a flexible manner based on a comprehensive assessment of market conditions, our capital levels, business investment opportunities, and other relevant factors ■ : Dividends per share ¥135 (Projections) ¥110 (Plan) ¥95 ¥70 ¥48 ¥36 ¥48 ¥50 ¥50 ¥50 ¥55 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Copyright (c) 2016 Tokio Marine Holdings, Inc. 13 2-4. Group Asset Management Group Asset Management Concept  With asset and liability management (ALM) at the core, we aim for steady profit growth while ensuring liquidity  Further strengthen investment capability by enhancing coordination among Group companies in Japan and overseas and promoting global investment diversification <Investment policy for each asset>  Domestic bond: Hold for controlling interest rate risks of yen-dominated insurance liabilities while closely watching the market trend  Foreign securities (mainly foreign bonds) : Increase the balance through investment in bonds in the U.S. and Europe by domestic subsidiaries as well as asset expansion at overseas subsidiaries Asset composition of TMHD (Consolidated) ※As of the end of Mar. 2016  Domestic equities (business-related equities): Continue to sell more than ¥100B per year from the perspective of enhancing capital efficiency Investment yield of the Group 2.1% 2.0% 1.0% 2.3% 2.2% Income return Impact from low interest rates in Japan is limited due to investment portfolio centered on long-term bonds and increased foreign assets with higher yield ■ Others ¥3.1T Mainly tangible fixed assets and intangible fixed assets, etc. ■ Cash and deposits ¥1.0T 4.7% 14.4% Total Assets 6.2% ■ Loans ¥0.8T ■ Monetary receivables bought ¥1.3T Mainly absolute return investment & lending by Domestic Non-Life (TMNF) and overseas subsidiaries 4.0% ■ Other securities ¥0.9T Mainly assets in separate accounts held by Domestic Life 4.4% 2013 2014 2015 ¥21.8T 20.8% 10.6% 34.9% Continuous reduction of business-related equities Sold total amount of ¥1.3T*1 since FY2004 Book value*2 has declined approx. by half ■ Foreign securities ¥4.5T Mainly local country bonds held by overseas subsidiaries mainly in the U.S. and Europe ■ Domestic bonds ¥7.6T Domestic government bonds (JGB): Approx. ¥6.8T Mainly bonds for the purpose of ALM by Domestic Life and Non-Life 100 93 2008/3E ■ Domestic equities ¥2.3T Mainly business-related equities held by Domestic Non-Life (TMNF) Copyright (c) 2016 Tokio Marine Holdings, Inc. 66 2012/3E 50 2016/3E 2004/3E *1: Market price at the time of sale *2: Figure at the end of FY2003 is set at index value of 100 14 Ⅱ Business Plan and Strategy by Domain Copyright (c) 2016 Tokio Marine Holdings, Inc. 15 Ⅱ. Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Copyright (c) 2016 Tokio Marine Holdings, Inc. 16 1-1. TMNF FY2016 Projections  Net premiums written is projected to expand due to steady execution of growth strategies, etc.  Business unit profits is projected to increase due to revenue growth as well as the reversal effect of an increase in natural catastrophes losses in FY2015, etc.  Net Premiums Written (billions of yen) CAGR +2.4% +0.3%  Projected to increase by 0.3% YoY due to premium growth in auto, etc., despite the reversal effect of an increase owing to policy 2,135.0 2,128.3 2,036.7 review by customers before the product revisions of fire insurance in FY2015  CAGR from FY2014 is +2.4%, steadily increasing in line with the Mid-Term Business Plan 2014 2015 2016 Projections  Business Unit Profits (billions of yen) +38.0 120.0 158.0  Projected to increase by ¥38.0B YoY due to the reversal effect of an increase in natural catastrophes losses in FY2015, etc.  Growth in FY2016 projection exceeds the target of +3% CAGR* in the Mid-Term Business Plan 113.7 2014 Copyright (c) 2016 Tokio Marine Holdings, Inc. *CAGR from FY2014 normalized basis (approx. ¥120B) in which effect of FX rate is excluded and natural catastrophes losses is normalized to an average annual level 2015 2016 Projections 17 1-2. TMNF Combined Ratio Combined ratio is stable, as a result of measures implemented to improve profitability  Combined Ratio (Private insurance: E/I basis*) 99.6% 97.5% 97.2% 94.4% 90.6% 91.4% 92.7% 90.8% ■ After normalizing natural catastrophes to an average annual basis approx. 92~93% 91.0% 2012 E/I loss ratio (Excluding natural catastrophes) (Natural catastrophes normalized to an average annual basis) Expense ratio 2013 65.0% 60.1% 62.2% 32.2% 2014 58.5% 56.9% 59.2% 32.2% 2015 60.1% 56.0% 58.2% 32.6% 2016 Projections 58.3% 55.8% - 32.7% 2017 Plan 66.8% 62.8% 64.7% 32.8% *: Loss ratio (private insurance E/I basis) + expense ratio (private insurance W/P basis)  Auto Loss Ratio (E/I basis) 69.4% 65.3% 61.1% 60.9% 60.5% 2012 Auto E/I C/R Auto E/I loss ratio Copyright (c) 2016 Tokio Marine Holdings, Inc. 2013 95.7% 65.3% 2014 91.6% 61.1% 2015 91.4% 60.5% 100.2% 69.4% 2016 Projections 91.8% 60.9% 18 1-3. TMNF - Measures to achieve sustainable growth (1) Strengthen customer contacts through productivity improvements to enhance the value delivered to customers to become "the best choice" • Further integration of the business model for life and non-life Expand Comprehensive Discount Super Insurance in Oct. 2016 (millions of policies) 1.92 ●TMNF Number of auto insurance policies 0.85 ●Number of automobiles owned nationwide 110 (managerial accounting basis, changes over the past one-year) (source: Automobile Inspection & Registration Information Association) for 2011/3E 2016/3E 109.9 • Expand product lines applied • Higher discount rates “Super Insurance” Number of in-force policies 95.7% Non-fleet auto Insurance 97.0% 105 103.4 Enhance cross-sell and renewal ratio Renewal Ratio* Super Insurance auto *FY2015 results • Advancing risk consulting services • Strengthen disaster countermeasures and provide BCP planning services based on earthquake disaster prevention plans • Identify risks and provide solutions for Japanese companies expanding businesses overseas 100 2011/3E 2012/3E 2013/3E 2014/3E 2015/3E 2016/2E Growth rate of number of autos* * 2011/3E is set at index value of 100 (billions of yen) 2,200 +4.5% • More edge to our claims-services Strengthen claims-service capability of employees and agents • Provide safety and security to all customers regardless of accident encounter • Further enhance our expertise and customer service capability • Establish system to support claims-service of employees and agents 2,000 Initiatives to strengthen capability for wide-area disasters Enhance Strengthen support + IT system mobility • Quick launch of nation-wide support team, enhancing support capability • Digitize accident report between agents and the company 1,800 1,600 1,400 1,200 1,000 2011 2012 2013 2014 2015 Enhance customer satisfaction Copyright (c) 2016 Tokio Marine Holdings, Inc. Net Premiums Written (all lines) 19 1-4. TMNF - Measures to achieve sustainable growth (2) Promoting R&D to capitalize on changes in business environment Providing new value such as preventive safety and loss reduction measures Drive Agent (for corporate clients) Automatic Accident Report Service (for individual customers) Responding to evolving risks New roles for insurance company • Study and research on legal responsibilities relating to accidents • Participation in demonstration tests on public roads for autonomous vehicles and development of specialized insurance package Auto • Comprehensive service using telematics technology • Automatic accident report service • Safety driving consultation • Accident prevention function which issues warnings when the vehicle is veering off lane Number of foreign tourists visiting Japan* 20 million • Automatic accident reporting process using beacon technology Target by the Government 2020: 40 million 2030: 60 million Inbound Insurance & Services • New travel insurance for foreign tourists after entering Japan, applicable through smart phones • Multi-lingual interpretation services for business organizations Increase in inbound tourists 15 10 5 0 2011 2013 2015 * source : Japan National Tourism Organization Utilization of technological innovation in the value chain of insurance business Technological innovation • Big data • AI Technological Innovation • Sales / Marketing • Pricing / Underwriting • Claims service 20 • Wearable technology Copyright (c) 2016 Tokio Marine Holdings, Inc. (Blank Page) Copyright (c) 2016 Tokio Marine Holdings, Inc. 21 Ⅱ. Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Copyright (c) 2016 Tokio Marine Holdings, Inc. 22 2-1. TMNL FY2016 Projections Aiming for steady growth maintaining financial soundness and profitability by promoting sales shift from saving-type products to protection-type products  New Policies Annualized Premiums (ANP) CAGR +12% +6% 114.1 84.9 119.7 100.4 112.7 107.1 (billions of yen)  New Policies ANP ̶ Projected to increase in line with the Mid-Term Business Plan by limiting the sales of saving-type products and continued launch of protection-type products under the low interest rate market in Japan Excluding long-term saving type products, protectiontype products is projected to increase by 6% YoY Accordingly, the product ratio of ANP other than longterm saving–type products is projected to increase by 11pts YoY to 95% ̶ ̶ 2014 2015 Total of new policies ANP Excluding long-term saving-type products (individual annuities and “whole life with long-term discount”) 2016 Projections  Individual Insurance・Number of New Policies (ten thousands of policies) CAGR +6%  Number of New Policies for Individual Insurance 60 53 58 ̶ Projected to increase by 3% YoY due to new cancer and medical insurance products released in FY2015 despite continuously limiting the sales of saving-type products 2014 Copyright (c) 2016 Tokio Marine Holdings, Inc. 2015 2016 Projections 23 2-2. TMNL - Change in MCEV and measures for low interest rates  Business Unit Profits (Increase in MCEV) (billions of yen) Changes in economic environment (decline in -38.3 interest rates, etc.) payment of shareholders’ dividends 1,037.3 ̶ MCEV is projected to increase by ¥39.0B in FY2016. Ensure profitability by promoting protection-type products while expecting effects of low interest rates 811.6 +39.0 Value of new business and release of discounted value of in-force business, etc. 2015 811.6*1 -187.4 115.6 2016 projections 850.6 39.0 39.0 -303.0 +115.6 Value of new business and release of discounted value of in-force business, etc. 850.6 ̶ Product revisions, etc. have been already made in response to the low interest rates (see below chart). Additional measures will be taken as needed 2014 Year-end MCEV MCEV Increase MCEV Increase *2 *3 Major product revisions, etc. responding to low interest rates FY2015 ■Product revision ・“Whole life with long-term discount” ・Individual annuity ・Single payment whole-life ・Single payment increasing whole-life FY2016 ■Suspension of sales ・Single payment whole-life ・Single payment increasing whole-life ・Single payment endowment (renewal) 1,037.3*1 *1: Figures for FY2014 and FY 2015 are after payment of shareholders’ dividends of the prior fiscal year *2: Excluding the effects of payment of shareholders’ dividends *3: Excluding the effects of payment of shareholders’ dividends and changes in economic environment (MCEV : Market Consistent Embedded Value) An index used to assess the value of life insurance business consistent with the value of financial instruments in the financial market Future economic condition is based on assumptions that the market conditions at the end of Mar. 2016 will continue ■Partial suspension of sales ・“Whole life with long-term discount” ・Whole-life *New sales of single payment endowments and single payment individual annuities were suspended before FY2014 Copyright (c) 2016 Tokio Marine Holdings, Inc. 24 2-3. TMNL - Promotion of “Life Insurance Revolution to Protect One’s Living” Expand and strengthen our unique product line-up which meets the diverse customer needs and serve as a source of stable profit Outpatient treatment (After discharge) Hospitalization / Surgery <Medical insurance> Inability to work (Home care) Nursing care requirement (Permanent disability) <Conventional life insurance> Death Coverage for conventionally untapped area  Extend coverage in response to the latest medical treatment  Proper pricing based on the latest medical data and the streamlining of business operations Introduced unique R (return) function FY2015 New Products In response to the latest medical treatment including chemotherapy Competitive pricing and flexibility in coverage No. of new policies of cancer insurance since its launch in Jul. 2015 : 110K (+205% YoY) Third-sector (Medical/Cancer) New policies ANP (billions of yen) 24.4 19.4 FY2015 Product revision Extended coverage in response to the latest medical treatment No. of new policies of medical insurance since its launch and revision in Nov. 2015 : 140K (+142% YoY) 2014 2015 Continue to launch unique products with coverage for untapped area Copyright (c) 2016 Tokio Marine Holdings, Inc. 25 2-4. TMNL - Strengthening growth potential Achieve growth in all four distribution channels by promoting multi-channel strategies FY2015 Results* +11% Initiatives in FY2016 Channel Composition (life insurance premiums on managerial accounting basis at the end of Mar. 2016 ) Life Partner approx. 10% Bancassurance approx. 10% Non-life Agents Life Professionals approx. 25% approx. 55% Non-life Agents 2014 2015  Develop products which promote integrated sales approach of life and non-life  Enhance sales ability by deploying dedicated salesperson for life  Differentiate from competitors leveraging the highly unique “Premium Series”  Support for establishment of sales system in response to the revision of Insurance Business Act  Strengthen business tie-up with non-life agents through full-time support by life partners at non-life insurance branches 2015 +14% Life Professionals 2014 2015 +15% Life Partners 2014  Recruiting sales agents with capability +21% Bancassurance 2014 2015  Sales promotion of protection-type products with installment plans *Life insurance premiums on managerial accounting basis at the end of Mar. 2016 excluding long-term saving-type products Further growth of the major four distribution channels with competitive products and sales ability Copyright (c) 2016 Tokio Marine Holdings, Inc. 26 Ⅱ. Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Copyright (c) 2016 Tokio Marine Holdings, Inc. 27 3-1. International Insurance - FY2016 Projections  Continue initiatives to achieve further profit growth by maintaining underwriting discipline even under the softening market  With contribution from HCC, promote further diversification of risks and expand profit growth as well as accelerate initiatives for creating synergies to generate additional values Net Premiums Written (billions of yen) +23% 1,610.0 (incl. HCC) 1,304.0 1,230.0 Business Unit Profits (billions of yen) +21% 159.0 (incl. HCC) 145.5 115.0 1,302.6 1,160.0 1,261.0 (excl. HCC) 131.8 100.0 115.0 (excl. HCC) 2014 Results Normalized basis* Applied FX rate Dec. 31, 2014 (USD/JPY) JPY 120.5 Applied FX rate (USD/JPY) 2015 Dec. 31, 2015 JPY 120.6 2016 Projections Mar. 31, 2016 JPY 112.6 Mar. 31, 2016 JPY 112.6 Results Normalized basis* 2014 Applied FX rate Dec. 31, 2014 (USD/JPY) JPY 120.5 2015 Dec. 31, 2015 JPY 120.6 2016 Projections Mar. 31, 2016 JPY 112.6 *Excluding yen conversion FX effects Mar. 31, 2016 Applied FX rate JPY 112.6 (USD/JPY) *Excluding yen conversion FX effects. Natural catastrophe losses is normalized to an average annual level  Projected to increase by 23% YoY mainly due to contribution from HCC  Projected to increase even on a normalized basis excluding contribution from HCC and the effect of the appreciation of the yen Composition of net premiums written (2016 Projections) South & Central America 7% Asia. Middle East 8% Reinsurance 8% Europe 9% 5% Copyright (c) 2016 Tokio Marine Holdings, Inc.  Projected to increase by 21% YoY mainly due to contribution from HCC  Projected to increase even on a normalized basis excluding contribution from HCC in FY2016 and normalizing natural catastrophe losses in FY2015 to an average annual level Life 6% HCC 22% Phila delphia 21% Delphi 14% North America 62%  With contribution from HCC, pursue further growth opportunities and accelerate the establishment of diversified business portfolio  Pursue balanced growth in both developed and emerging markets through “organic growth” and “strategic M&A” 28 Others 3-2. North America - Philadelphia Maintaining profit growth outperforming the market through underwriting discipline and action  Highly competitive business model focusing on niche markets  Maintaining C/R lower than market average through underwriting discipline  Maintaining high renewal ratio of in-force policies and continuing rate increases through strong franchise network Net Premiums Written 342.3 323.9 3,190 319.0 Normalized basis 302.0 3,020 Composition of Premiums Income (2015) ¥332.0bil ■ Human Services ■ Real Estate ■ Public Service ■ Mgmt & Prof. ■ Sports & Rec. ■ Other 30% 18% 13% 13% 9% 17% 2014 2015 2016 Projections Business Unit Profits 91% 91% 46.4 ¥40.0bil 38.0 Combined Ratio C/R 94% 110% US P&C market average Philadelphia 42.3 41.0 Normalized basis 100% 90% 2014 2015 2016 Projections 80% FY10 FY11 FY12 FY13 FY14 FY15  Projecting steady profit growth even under the softening market Copyright (c) 2016 Tokio Marine Holdings, Inc. 29 3-3. North America - Delphi Maintaining profit growth through profound investment expertise as well as further developing specific products and specific markets  Highly competitive business model focusing on market for employee benefits and excess workers compensation  Utilization of profound investment expertise  Maintaining high retention ratio and continuing rate increases in main products Net Premiums Written 241.3 236.6 225.0 221.0 Normalized basis 2,210 2,250 Composition of Premiums Income (2015) ¥232.0bil Non-life 38% ■ Disability ■ Group life ■ Others (Life) Life 62% 33% 22% 7% Life 62% ■ Excess W/C ■ Others (Non-life) 22% 16% Non-life 38% 95.2% 2014 2015 2016   Projections Business Unit Profits 96% 96% 44.4 40.2 39.0 Normalized basis 36.0 Combined Ratio C/R 98% 110% US P&C market average Delphi ¥42.0bil 100% 90% 2014 2015 2016 Projections 80%  Projecting profit growth mainly due to an increase in investment income Copyright (c) 2016 Tokio Marine Holdings, Inc. FY10 FY11 FY12 FY13 FY14 FY15 30 3-4. North America - HCC A world leading specialty insurer Aiming for further profit growth through synergy creation while maintaining high profitability  Diverse and highly profitable portfolio  Disciplined growth and best-in-class underwriting profitability  New business development and further profit expansion through synergy creation Net Premiums Written ¥349.0bil Composition of Premiums Income (2015) LOBs that are less dependent on the P&C market cycles (approx. 58%) Medical Stop-loss Agriculture US Surety Sports & Entertainment International Surety & Credit Other A&H US Credit 25% 16% 4% 3% 3% 4% 2% 2016 Projections Total 58% Business Unit Profits C/R 88% ¥44.0bil 100% 110% Combined Ratio US P&C market average HCC 90% 2016 Projections 80%  Further strengthen business platform of North America due to profit contribution from FY2016 Copyright (c) 2016 Tokio Marine Holdings, Inc. FY10 FY11 FY12 FY13 FY14 FY15 31 3-5. Europe / Reinsurance  Expanding profit mainly in specialty business in the Lloyd’s market  Maintaining underwriting discipline as continuous softening of the European market is expected Europe  Under the softening market, continue maintaining stable profit by promoting geographical and product line diversification  Expanding source of profit through solution offering to meet customer needs Reinsurance Net Premiums Written Normalized basis 152.4 148.4 134.0 ¥147.0bil Net Premiums Written Normalized basis 188.3 149.5 137.0 175.0 ¥134.0bil 129.0 2014 2015 96% 2016 Projections   C/R 94% 2014 2015 2016 Projections C/R 97% Business Unit Profits Normalized basis 94% 19.7 10.0 Business Unit Profits Normalized basis 93% 93% ¥9.0bil 8.0 1.0 9.6 1.0 10.6 ¥9.0bil 2.0 2014 2015 2016 Projections 2014 2015 2016 Projections  Projected to increase mainly due to the reversal effect of large losses such as Tianjin port explosion and foreign exchange losses in FY2015  Projected to increase mainly due to the reversal effect of large losses in FY2015 Tokio Marine Kiln Premium composition of Lloyd’s business Others Aviation 4% 6% 10% By line 2015 110% Combined Ratio Lloyd’s market average 100% Change in portfolio (Earned premiums basis) non-natcat natcat natcat approx. approx. Combined Ratio 130% 110% 90% 70% 50% 30% FY07 FY09 * Peer average* TMR TMK (Lloyd’s business) non-natcat 40% natcat A&H Property & Liability 54% Re 9% insurance 17% Marine 80% 90% FY11 FY13 FY15 2007 80% 2011 2015 FY10 FY11 FY12 FY13 FY14 FY15 Copyright (c) 2016 Tokio Marine Holdings, Inc. * Average of 12 peer companies as below: (Renaissance Re, Validus, Ace(R/I only), Axis(R/I only), Montpelier Re, Markel, AWAC, Arch, Endurance, Aspen, Everest Re, Partner Re) 32 3-6. Emerging Countries South & Continue profit growth by providing products Central and services which meet the needs of customers through high quality operation America Net Premiums Written 132.1 Normalized basis 91.0 Asia Achieve growth in the retail market by expanding distribution channels and Middle rolling-out the best-practice within the Group East Life Non-life Normalized Net Premiums Written basis 118.7 105.0 102.7 105.0 ¥117.0bil 115.7 112.0 ¥124.0bil 117.9 105.0 82.9 81.0 ¥94.0bil 2014 2015 2016 Projections 2014 2015 2016 Projections Normalized basis 2014 2015 2016 Projections Business Unit Profits 100% 100% C/R 100% Business Unit Profits 91% 91% 14.8 13.0 C/R 95% 5.8 Normalized basis 3.0 2014 5.3 5.0 17.1 ¥4.0bil 14.0 9.4 ¥10.0bil 8.0 0.6 2015 2016 Projections 2014 2015 2016 Projections 2014 ¥2.0bil 1.0 2015 2016 Projections  Continue to aim for solid profit growth, although projected to decrease mainly due to the effect of change in tax law in Brazil  Maintaining high growth outperforming market and profitability in auto insurance as the main business  Projected to decrease due to the reversal effect of temporary increase factors in FY2015  Projected to increase due to the reversal effect of a decrease in unrealized gains associated with the decline in stock prices in FY2015, etc. Brazil (Local currency basis premium) Market CAGR +10% BRL(millions) 3,000 2,000 1,000 FY12 FY13 FY14 FY15 2013-2015 Major Asian Countries (Non-life gross premium CAGR) Tokio Marine CAGR +21% Copyright (c) 2016 Tokio Marine Holdings, Inc. 33 3-7. International Insurance - FY2016 Projections by Region Net Premiuns Written (billions of yen) YoY Change 328.1 -10.3 -9.3 349.0 -1.4 14.2 8.2 -54.3 294.8 11.0 % 49% -3% -4% -1% 14% 7% -29% 24% 13% (Ref.) (Excluding *3 FX effects) Business Units Profits (billions of yen) YoY Change 33.3 -6.4 -2.4 44.0 0.9 -1.3 -4.8 -1.6 26.6 1.3 % 35% -14% -5% 11% -25% -33% -16% 20% 231% (Ref.) (Excluding *3 FX effects) C/R 2014 2015 2016 Projections 2014 2015 2016 Projections 2014 2015 2016 Projections North America (incl. HCC)   Philadelphia   Delphi   HCC Europe*4 South & Central Asia & Middle East*4 Reinsurnace Total Non-Life* Life 1 631.2 323.9 236.6 152.4 132.1 118.7 149.5 1,184.7 117.9 665.8 342.3 241.3 148.4 102.7 115.7 188.3 1,221.1 82.9 994.0 332.0 232.0 349.0 147.0 117.0 124.0 134.0 1,516.0 94.0 60% 4% 3% 9% 11% 11% -24% 32% 15% 87.2 42.3 40.2 19.7 5.8 17.1 9.6 138.6 9.4 95.6 46.4 44.4 8.0 5.3 14.8 10.6 134.3 0.6 129.0 40.0 42.0 44.0 9.0 4.0 10.0 9.0 161.0 2.0 44% -8% 1% 24% -27% -30% -10% 28% 187% 94% 91% 96% 94% 100% 91% 93% 94% - 94% 91% 96% 96% 100% 91% 93% 95% - 93% 94% 98% 88% 94% 100% 95% 97% 94% - Total*2 1,302.6 1,304.0 1,610.0 305.9 23% 31% 145.5 131.8 159.0 27.1 21% 29% 94% 95% 94% *1: Total Non-Life figures include some life insurance figures of composite overseas subsidiaries *2: After adjustment of head office expenses *3: Local currency basis *4: Before, Middle East was included in Europe, but from FY2016, Middle East will be included in Asia (same for FY2014 and FY2015 in the above chart) 2014 Applied FX rate As of endDec. 2014 2015 As of endDec. 2015 2016 Projections As of endMar. 2016 Change -7% -9% 3% 3% (USD / JPY) (GBP / JPY) (Brazilian Real / JPY) Y) (Malaysian Ringgit / JPY ¥120.5 ¥187.0 ¥45.3 ¥34.4 ¥120.6 ¥178.7 ¥30.4 ¥28.0 ¥112.6 ¥161.9 ¥31.3 ¥28.8 Copyright (c) 2016 Tokio Marine Holdings, Inc. 34 (Blank Page) Copyright (c) 2016 Tokio Marine Holdings, Inc. 35 Reference a ・Tokio Marine Holdings Key Statistics ・Return to Shareholders ・FY2015 Results Overview ・FY2016 Projections Overview ・Definition and Reconciliation of Adjusted Net Income, Adjusted Net Assets and Adjusted ROE ・Definition and Reconciliation of Business Unit Profits ・Impact of FX rate change on the Group’s Financial Results ・Long-term Vision and Mid-Term Business Plan "To Be a Good Company 2017" b c ・Initiatives for “Sustainable Profit Growth” ・Framework of the Mid-Term Business Plan and Group Management ・Basic Information (Domestic Non-Life) - TMNF ・Basic Information (Domestic Life) - TMNL ・Asset Portfolio ・Basic Information (International Insurance) d Copyright (c) 2016 Tokio Marine Holdings, Inc. 36 Tokio Marine Holdings Key Statistics FY2006 Net income (billions of yen) Shareholders' equity after tax (billions of yen) EPS (yen) BPS (yen) ROE PBR Adjusted net income (billions of yen) Adjusted net assets (billions of yen) FY2007 108.7 2,563.5 133 3,195 3.6% 1.15 99.4 15.1 29.7 -1.0 60 FY2008 23.1 1,627.8 29 2,067 1.1% 1.16 5.1 -57.2 20.8 -21.1 50 FY2009 128.4 2,169.0 163 2,754 6.8% 0.96 46.2 52.0 76.5 -9.4 95 FY2010 71.9 1,886.5 92 2,460 3.5% 0.90 20.4 27.5 24.8 -0.7 187 FY2011 6.0 1,839.6 7 2,399 0.3% 0.95 30.7 2,301.6 40 3,001 1.3% 0.76 -26.1 15.9 -11.9 2.6 206 FY2012 129.5 2,340.7 168 3,052 6.2% 0.87 163.1 2,746.5 212 3,580 6.5% 0.74 48.3 110.3 69.2 -18.7 115 FY2013 184.1 2,712.7 239 3,536 7.3% 0.88 243.7 3,172.5 317 4,135 8.2% 0.75 34.0 104.5 136.9 2.5 109 FY2014 247.4 3,578.7 323 4,742 7.9% 0.96 323.3 4,103.4 423 5,437 8.9% 0.83 122.5 139.8 145.5 4.0 112 FY2015 254.5 3,484.7 337 4,617 7.2% 0.82 351.9 3,599.3 466 4,769 9.1% 0.80 126.0 -188.1 131.8 7.3 122 *1 93.0 3,398.4 112 4,128 2.8% 1.06 89.0 48.2 28.6 3.8 45 Financial accounting basis KPI Adjusted EPS (yen) Adjusted BPS (yen) Adjusted ROE Adjusted PBR Domestic non-life insurance business Business Unit Profits*2 (billions of yen) Domestic life insurance business International insurance business Financial and general businesses Sales of business-related equity holdings (billons of yen) 2007/3E Adjusted number of issued and outstanding shares (thousands of shares) Market capitalization (billions of yen) Share price (yen) Percentage change (Reference) TOPIX Percentage change 2008/3E 802,231 2,960.6 3,680 - 15.6% 1,212.96 - 29.2% 2009/3E 787,562 1,926.8 2,395 - 34.9% 773.66 - 36.2% 2010/3E 787,605 2,118.3 2,633 9.9% 978.81 26.5% 2011/3E 766,820 1,789.3 2,224 - 15.5% 869.38 - 11.2% 2012/3E 766,928 1,827.1 2,271 2.1% 854.35 - 1.7% 2013/3E 767,034 2,039.2 2,650 16.7% 1,034.71 21.1% 2014/3E 767,218 2,383.9 3,098 16.9% 1,202.89 16.3% 2015/3E 754,599 3,438.0 4,538.5 46.5% 1,543.11 28.3% 2015/9E 754,685 2,878.6 3,800 - 16.3% 1,347.20 - 12.7% *3 823,337 3,594.9 *4 4,360 - 6.4% 1,713.61 - 0.8% *1 *2 *3 *4 FY2015: the figure is "Net income attributable to owners of the parent" FY2006-2014 figures are "Adjusted earnings" (Former KPI), domestic life insurance business are presented on an TEV (Traditional Embedded Value) basis All figures exclude the number of treasury shares held from the total number of the shares issued and are shown on a basis after a share-split 1-500 in Sep. 2006 All figures are shown on a basis after a share-split 1-500 in Sep. 2006 Copyright (c) 2016 Tokio Marine Holdings, Inc. 37 Return to Shareholders FY2006 Dividends per share Dividends total 36yen 29.8bn yen FY2007 48yen 38.7bn yen FY2008 48yen 38.0bn yen FY2009 50yen 39.4bn yen FY2010 50yen 38.6bn yen FY2011 50yen 38.3bn yen FY2012 55yen 42.2bn yen FY2013 70yen 53.7bn yen FY2014 FY2015 FY2016 Projections 135yen 101.8bn yen 95yen 110yen (plan) 72.2bn yen 83.0bn yen Share repurchases*1 Total distributions to shareholders 85.0bn yen 90.0bn yen 50.0bn yen 88.0bn yen 39.4bn yen 50.0bn yen 88.6bn yen 38.3bn yen 42.2bn yen - 50.0bn yen 83.0bn yen TBD TBD 114.8bn yen 128.7bn yen 53.7bn yen 122.2bn yen Adjusted net income Average adjusted net income Payout ratio*2 30.7bn yen 163.1bn yen 243.7bn yen 323.3bn yen 351.9bn yen 220.0bn yen 38% 388.0bn yen 290.0bn yen 35% Adjusted net income was adopted as a new KPI in FY2015. (Figures from FY2011 to FY2014 are adjusted net income.) Key Statistics from FY2006 to FY2014 are shown in Reference 2 table. <Refernece1 : Financial accounting basis> Net income (Consolidated) Payout ratio <Refernece2 : Former KPI> Adjusted earnings Adjusted earnings (excluding EV) Average adjusted earnings (excluding EV)*3 Payout ratio*2 169.7bn yen 143.2bn yen - 52.5bn yen 165.4bn yen 121.5bn yen 128.1bn yen 90.0bn yen 100.0bn yen 33% 39% 4.7bn yen 113.4bn yen 80.0bn yen 48% 85.0bn yen 46% 72.0bn yen - 19.5bn yen 209.1bn yen 278.1bn yen 412.0bn yen 44.5bn yen - 35.4bn yen 80.0bn yen 48% 80.0bn yen 48% 98.8bn yen 173.6bn yen 272.2bn yen 85.0bn yen 110.0bn yen 155.0bn yen 50% 49% 47% 93.0bn yen 108.7bn yen 32% 36% 23.1bn yen 128.4bn yen 165% 31% 71.9bn yen 54% 6.0bn yen 129.5bn yen 184.1bn yen 247.4bn yen 639% 33% 29% 29% 254.5bn yen 33% 265.0bn yen 38% *1: On a repurchase year basis. FY2006 figure excludes JPY57.8B of stock exchange between Nisshin Fire *2: Until FY2014: payout ratio to average adjusted earnings (exluding EV) From FY2015: payout ratio to average adjusted net income *3: Excludes effects from the Great East Japan Earthquake and Thai Flood Copyright (c) 2016 Tokio Marine Holdings, Inc. 38 FY2015 Results Overview (Consolidated)  Net Premiums Written (billions of yen, except for %) • FY2014 ■Ordinary income (TMHD Consolidated) Net premiums written (TMHD Consolidated) Life insurance premiums (TMHD Consolidated) FY2015 4,579.0 3,265.5 471.6 385.8 377.2 9.7 29.0 145.7 5.7 - 181.5 254.5 301.6 6.1 14.7 111.5 3.4 - 183.0 YoY Change % Increased both in domestic non-life business and overseas subsidiaries 4,327.9 3,127.6 220.4 358.1 264.0 17.6 251.0 137.9 251.2 27.6 113.1 - 7.9 8.3 - 9.4 - 0.4 - 75.9 7.1 116.2 - 6.4 - 14.0 - 13.0 0.2 - 75.8 + 5.8% + 4.4% + 114.0% + 7.7% + 42.9% - 45.0% + 40.3% - 6.1% - 8.0%  Life Insurance Premiums • Increased due to a steady increase in in-force policies and a decrease in surrender of variable annuities in domestic life business, etc. ■Ordinary profit (TMHD Consolidated) Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.) *1 20.6 155.1 6.2 - 105.6 247.4 185.3 12.5 28.8 124.5 3.2 - 107.1  Ordinary Profit • Domestic Non-Life Underwriting profit decreased despite an increase in net premiums earned due to (i) increase in net incurred losses relating to natural catastrophes, (ii) higher large losses and (iii) increase in net provision for catastrophe loss reserves, etc.. Net investment income and other increased due to an increase in dividends from subsidiaries and an improvement of gains/losses on derivatives, in addition to an increase in gains on sales of securities, etc. ■Net income attributable to owners of the parent*2 Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life*1 Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.) *1 *2 + 2.9% + 62.8% - 51.2% - 48.9% - 10.4% + 6.8% • Domestic Life Increased due to the reversal of contingency reserves associated with surrender of variable annuities, etc. Since Tokio Marine & Nichido Life (TMNL) and Tokio Marine & Nichido Financial Life (FL) merged on October 1st 2014, FY2014 results for TMNL are the sum of the results of the two companies. "Net income attributable to owners of the parent" shows figures for former "Net income" • Overseas Subsidiaries Decreased due to large losses and foreign exchange losses on a local accounting basis, etc. in addition to the appreciation of the yen against emerging market currencies despite a decrease in net incurred losses relating to natural catastrophes 【KPI for the Group Total】 ■Adjusted net income 323.3 351.9 28.6 + 8.8%  Net Income attributable to owners of the parent*2 • Increased due to the factors above  Adjusted Net Income • Copyright (c) 2016 Tokio Marine Holdings, Inc. Adjusted net income which excludes the effect of an increase in net provision for catastrophe loss reserves, etc., increased 39 FY2015 Results Overview (Business Unit Profits) (billions of yen) Business Domain FY2014 Results FY2015 Results YoY Change 3.5 6.3 -3.4 0.7 -355.5 -357.1 -13.7 8.3 -11.4 -0.5 -2.5 1.0 -4.3 -8.8  Domestic Non-Life TMNF: Increased by ¥6.3B YoY to ¥120.0B  Improvement of gains/losses on derivatives Increase in net incurred losses relating to natural catastrophes and large losses  Domestic Non-Life TMNF NF Other Domestic Life*1・2 TMNL International Insurance North America Europe (incl. Middle East) South & Central America Asia Reinsurance International Non-Life International Life Financial & General *3 122.5 113.7 12.2 -3.4 167.4 169.7 145.5 87.2 19.6 5.8 17.3 9.6 138.6 9.4 126.0 120.0 8.8 -2.7 -188.1 -187.4 131.8 95.6 8.1 5.3 14.7 10.6 134.3 0.6  Domestic Life TMNL : Decreased by ¥357.1B YoY to ¥187.4B *   Effects of changes in economic conditions including a decline in interest rates Reversal effect of the decrease in corporate tax rate in FY2014, etc. * Increase in MCEV excluding the effects of changes in economic conditions such as decline in interest rates is ¥115.6B  International Insurance Decreased by ¥13.7B YoY to ¥131.8B    Decrease in net incurred losses relating to natural catastrophes Increase in large losses Increase in foreign exchange losses on local accounting basis 4.0 7.3 3.3 *1: Excluding capital transactions *2: Regarding Domestic Life, because MCEV was adopted, which is effective from FY2015, FY2014 figure is also described based on MCEV *3: International Non-Life figures include some life insurance figures of composite overseas subsidiaries Copyright (c) 2016 Tokio Marine Holdings, Inc. 40 FY2016 Projections Overview (Consolidated)  Net Premiums Written • (billions of yen, except for %) ■Ordinary income (TMHD Consolidated) Net premiums written (TMHD Consolidated) Life insurance premiums (TMHD Consolidated) FY2015 Results 4,579.0 3,265.5 471.6 385.8 377.2 9.7 29.0 145.7 5.7 - 181.5 254.5 301.6 6.1 14.7 111.5 3.4 - 183.0 FY2016 Projections 3,460.0 800.0 380.0 309.0 6.4 22.9 164.1 4.3 - 126.7 265.0 245.0 4.3 15.6 120.7 3.0 - 123.6 YoY Change % Increase mainly due to HCC consolidation despite the appreciation of the yen Increase due to an increase in in-force policies and a decrease in surrender of variable annuities in domestic life business as well as HCC consolidation, etc.  Life Insurance Premiums • 194.4 328.3 - 5.8 - 68.2 - 3.3 - 6.1 18.3 - 1.4 54.8 10.4 - 56.6 - 1.8 0.8 9.1 - 0.4 59.4 + 6.0% + 69.6% - 1.5% - 18.1% - 34.1% - 21.1% + 12.6% - 24.8% ■Ordinary profit (TMHD Consolidated) Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.)  Ordinary Profit • Domestic Non-Life Underwriting profit is projected to increase due to (i) assuming an average level of net incurred losses relating to natural catastrophes and (ii) a lowering of the provision rate for catastrophe loss reserves in auto group at TMNF, etc.. Net investment income and other is projected to decrease due to a decrease in dividends from subsidiaries and the reversal effects of gains on derivatives in FY2015, etc. ■Net income attributable to owners of the parent Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.) 【KPI for the Group Total】 + 4.1% - 18.8% - 30.0% + 5.7% + 8.2% - 14.2% • Domestic Life Decrease due to a decrease in amount taken down from contingency reserves associated with maturities of policies at former FL, etc. • Overseas Subsidiaries + 10.3% ■Adjusted net income 351.9 388.0 36.1 Increase due to HCC consolidation and the reversal effect of large losses in FY2015, etc. despite the appreciation of the yen and assuming an average level of natural catastrophe losses which were relatively low in FY2015  Net Income attributable to owners of the parent • Increase due to the factors above and the reversal effect of reduction of deferred tax assets owing to the decrease in corporate tax rate in FY2015, etc. Adjusted net income which excludes the effect of an increase in amortization of goodwill associated with HCC consolidation, etc., 41 is projected to increase  Adjusted Net Income • Copyright (c) 2016 Tokio Marine Holdings, Inc. FY2016 Projections Overview (Business Unit Profits) (billions of yen) Business Domain FY2015 Results FY2016 Projections YoY Change 39.0 38.0 -1.8 1.7 227.1 226.4 27.1 33.3 0.9 -1.3 -4.8 -1.6 26.6 1.3  Domestic Non-Life TMNF: Projected to increase by ¥38B YoY to ¥158B  Decrease in net incurred losses relating to natural catastrophes and large losses  Reversal effect of an improvement of gains/losses on derivatives in FY2015 Domestic Non-Life TMNF NF Other Domestic Life*1 TMNL International Insurance North America Europe South & Central America Asia (incl. Middle East) Reinsurance International Non-Life International Life Financial & General *2 126.0 120.0 8.8 -2.7 -188.1 -187.4 131.8 95.6 8.0 5.3 14.8 10.6 134.3 0.6 165.0 158.0 7.0 -1.0 39.0 39.0 159.0 129.0 9.0 4.0 10.0 9.0 161.0 2.0  Domestic Life TMNL : Projected to increase by ¥226.4B YoY to ¥39B  Reversal effect of changes in economic conditions including a decline in interest rates in FY2015  Steady increase in new policies  International Insurance Projected to increase by ¥27.1B YoY to ¥159B  HCC consolidation  Reversal effect of large losses and foreign exchange losses in FY2015  Assuming an average level of natural catastrophe losses which were relatively low in FY2015 7.3 4.0 -3.3 *1: Excluding capital transactions *2: International Non-Life figures include some life insurance figures of composite overseas subsidiaries Copyright (c) 2016 Tokio Marine Holdings, Inc. 42 Definition of Adjusted Net Income (New from FY2016) / Adjusted Net Assets / Adjusted ROE Definition of Adjusted Net Income / Adjusted Net Assets / Adjusted ROE  Adjusted Net Income*1 Adjusted Net Income = Net income (consolidated)*2 Provision for + catastrophe loss reserves*3 + Provision for contingency reserves*3 + Provision for price fluctuation reserves*3 Gains or losses on sales or valuation of ALM*4 bonds and interest rate swaps Gains or losses on sales or valuation of fixed assets and business investment equities + Amortization of goodwill and other intangible fixed assets Other extraordinary gains/losses, valuation allowances, etc  Adjusted Net Assets*1(average balance basis) Adjusted Net Assets = Net assets (consolidated) + Catastrophe loss reserves + Contingency reserves + Price fluctuation reserves Goodwill and other intangible fixed assets  Adjusted ROE Adjusted ROE = Adjusted Net Income ÷ Adjusted Net Assets *1: Each adjustment is on an after-tax basis *2: Net income is attributable to owners of the parent *3: Reversals are subtracted *4: ALM: Asset Liability Management. Excluded as counter balance items against market value fluctuations of liabilities under ALM Difference Between New Definition and Former Definition “Gains or losses on sales or valuation of business investment equities” is added to the adjusting items for Adjusted Net Income (See bold underline text portion). <Treatment of gains or losses on sales or valuation for the types of equities> Adjusted Net Income (new) Adjusted Net Income (former) (note1) Equities held for the purpose of gains derived from the increase in the market Absolute return investments (note1) Included Included value and/or the dividend income (note2) Domestic equities and other securities held by domestic subsidiaries for the main purpose of strengthening business relationships (note3) Equities and other securities other than Absolute return investments, Business-related equities and Investments in subsidiaries and affiliates (such as equities and other securities substantially equivalent to Investments in subsidiaries and affiliates, but not treated as Investments in subsidiaries and affiliates under the applicable accounting principles) Business-related equities (note2) Included Excluded (excluded as “other extraordinary gains/ losses) Excluded Included Excluded (excluded as “other extraordinary gains/ losses) Included Investments in subsidiaries and affiliates Business investment equities (note3) Copyright (c) 2016 Tokio Marine Holdings, Inc. 43 Reconciliation of Adjusted Net Income / Adjusted Net Assets (billions of yen)  Adjusted Net Income*1 FY2015 Results FY2016 Projections YoY Change  Adjusted Net Assets FY2015 Results FY2016 Projections YoY Change  Adjusted ROE FY2015 Results FY2016 Projections YoY Change Net income attributable to owners of the parent (consolidated)*2 *3 254.5 265.0 10.4 Net assets(consolidated) 3,484.7 3,605.0 120.3 Net income(consolidated) 254.5 265.0 10.4 Provision for catastrophe loss reserves +68.9 +31.0 -37.9 Catastrophe loss reserves +769.1 +806.0 36.9 Net assets(consolidated)*5 FInancial acccounting basis ROE *5 average balance basis 3,531.7 3,545.0 13.3 Provision for contingency reserves *3 -0.2 - 0.2 Contingency reserves +34.2 +34.0 -0.2 7.2% 7.5% + 0.3pt Provision for price fluctuation reserves *3 +3.7 *4 +3.0 -0.7 Price fluctuation reserves +62.8 +67.0 4.2 Gains or losses on sales or valuation of ALM bonds and interest rate swaps -22.6 - 22.6 Goodwill and other intangible fixed assets -751.5 -752.0 -0.5 FY2015 Results FY2016 Projections YoY Change Gains or losses on sales or valuation of fixed assets and business investment equities (FY2015 Results : Gains or losses on sales or valuation of fixed assets) +1.8 -4.0 -5.8 Adjusted Net Assets 3,599.3 3,761.0 161.7 Adjusted Net Income 351.9 388.0 36.1 Amortization of goodwill and other intangible fixed assets Other extraordinary gains/losses, valuation allowances, etc. +34.3 +93.0 58.7 Adjusted Net Assets*5 3,851.4 3,680.0 -171.4 +11.3 - -11.3 Adjusted ROE *5 average balance basis 9.1% 10.5% + 1.4pt Adjusted Net Income *1 *2 *3 *4 351.9 388.0 36.1 Each adjustment is on an after-tax basis "Net income attributable to owners of the parent" shows figures for former "Net income" Reversals are subtracted ALM: Asset Liability management Excluded as counter balance items against market value fluctuations of liabilities under ALM Copyright (c) 2016 Tokio Marine Holdings, Inc. 44 Definition of Business Unit Profits (New from FY2016) Definition of Business Unit Profits  Non-life insurance business Business Unit Profits*1 = Net income Provision for + catastrophe loss reserves*2 + Provision for price fluctuation reserves*2 Gains or losses on sales or valuation of ALM*3 bonds and interest rate swaps Gains or losses on sales or valuation of fixed assets, business related equities and business investment equities *1: Each adjustment is on an after-tax basis Other extraordinary gains/losses, valuation allowances, etc. -  Life insurance business*4 Business Unit Profits*1 Increase in EV*5 = during the current fiscal year + Capital transactions such as capital increase *2: Reversals are subtracted *3: ALM: Asset Liability Management. Excluded as counter balance items against market value fluctuations of liabilities under ALM *4: For life insurance companies in certain regions, Business Unit Profits is calculated by using the definition in Other businesses (head office expenses, etc. are deducted from profits) *5: EV: Embedded Value. An index that shows the net present value of profits to be gained from policies in-force is added to the net asset value  Other businesses Net income determined in accordance with financial accounting principles Difference Between New Definition and Former Definition <Change in the definition of Business Unit Profits for non-life insurance business> Among the adjusting items for Business Unit Profits, “Gains or losses on sales or valuation of equity holdings” is replaced by “Gains or losses on sales or valuation of business-related equities and business investment equities.” (See bold underline text portion). <Treatment of gains or losses on sales or valuation for the types of equities> Business Unit Profits (new) Business Unit Profits (former) Absolute return investments (note1) Included Excluded (note1) Equities held for the purpose of gains derived from the increase in the market value and/or the dividend income (note2) Domestic equities and other securities held by domestic subsidiaries for the Business-related equities (note2) Excluded Excluded (excluded as “other extraordinary gains/ losses) Excluded Excluded Excluded (excluded as “other extraordinary gains/ losses) Excluded main purpose of strengthening business relationships (note3) Equities and other securities other than Absolute return investments, Business-related equities and Investments in subsidiaries and affiliates (such as equities and other securities substantially equivalent to Investments in subsidiaries and affiliates, but not treated as Investments in subsidiaries and affiliates under the applicable accounting principles) Investments in subsidiaries and affiliates Business investment equities (note3) Copyright (c) 2016 Tokio Marine Holdings, Inc. 45 Reconciliation of Business Unit Profits  Domestic Non-Life*1 (TMNF) FY2015 Results (billions of yen) FY2016 Projections YoY Change  International Insurance*1 (billions of yen) FY2015 Results FY2016 Projections Net income for accounting purposes 301.6 245.0 -56.6 Overseas subsidiaries Net income for accounting purposes Difference with EV (Life) Adjustment of non-controlling interests Difference of subsidiaries covered 111.5 -2.0 -2.3 9.5 15.2 131.8 120.7 Provision for catastrophe loss reserves *2 +68.3 +27.0 -41.3 Provision for price fluctuation reserves *2 +3.5 *3 +3.4 -0.1 Gains or losses on sales or valuation of ALM bonds and interest rate swaps Gains or losses on sales or valuation of fixed assets, business related equities and business investment equities (FY2015 Results : Gains or losses on sales or valuation of equity holdings and fixed assets) -21.1 +0.0 21.1 Other adjustments -76.4 -55.0 21.4 *4 Business Unit Profits 159.0 Intra-group dividends -155.7 -62.8 92.9 Other extraordinary gains/losses, valuation allowances, etc -0.2 +0.4 0.6 Business Unit Profits 120.0 158.0 38.0 *1: Each adjustment is on an after-tax basis *2: Reversals are subtracted *3: ALM: Asset Liability Management. Excluded as counter balance items against market value fluctuations of liabilities under ALM *4: Amortization of other intangible fixed assets, head office expenses, etc. Copyright (c) 2016 Tokio Marine Holdings, Inc. 46 Impact of FX rate change on the Group’s Financial Results  Main impact in the event of 1 yen appreciation*1 Impact on P/L 1. Decrease in profit from overseas subsidiaries converted into yen: 2. Change in reserves for foreign currency denominated outstanding claims and derivatives at TMNF: approx. ¥ - 1.0B*2 approx. ¥ + 1.0B*2 *1 Assuming that the FX rate for each currency changes by the same ratio as USD *2 After tax basis  Reference (applied FX rate) Applied FX rate (USD/JPY) FY2014 Results JPY 120.55 (end-Dec.2014) FY2015 Results JPY 120.61 (end-Dec.2015) FY2016 Projections Overseas subsidiaries JPY 112.68 (end-Mar.2016) TMNF JPY 120.17 (end-Mar.2015) JPY 112.68 (end-Mar.2016) Copyright (c) 2016 Tokio Marine Holdings, Inc. 47 Long-term Vision and the Mid-Term Business Plan "To Be a Good Company 2017" Long-term vision A global insurance group that delivers sustainable growth by providing safety and security to customers worldwide - Our timeless endeavor to be a Good Company Aiming for globally competitive-level earnings growth and capital efficiency ~Drive ROE towards double-digit sphere~ Mid-Term Business Plan “To Be a Good Company 2017” ~Evolve business structure to realize sustainable profit growth and higher ROE~ "Innovation and Execution 2014" ~Achieve an ROE exceeding our cost of capital~   Unlocking our potential Capitalizing on changes Pursuing growth opportunities Advancing our business platform Structural reform to profitable business Innovative changes for wellbalanced business portfolio     Profit recovery stage Copyright (c) 2016 Tokio Marine Holdings, Inc. Sustainable profit growth stage 48 Initiatives for “Sustainable Profit Growth”  Enhancement Unlocking our potential  Domestic insurance: Enhancing the integrated business model for life and non-life, strengthening claims-service capabilities, and further utilizing our risk consulting service International insurance: Enhancing organic growth Evolution Capitalizing on changes  Effectively forecasting and proactively meeting the emerging and evolving needs of the market and our customers Strengthening R&D to convert new risks into our business opportunities  Expansion Pursuing growth opportunities  Promoting disciplined business investment to capture growth opportunities globally Enhancing our diversified business portfolio based on risk appetite Advancing ERM and improving risk portfolio to sustainably and comprehensively enhance profit growth, capital efficiency, and financial soundness Strengthening our business platform to further reinforce our globalized business Developing a diverse workforce with a strong customer orientation to drive sustainable growth   Excellence Advancing our business platform   Copyright (c) 2016 Tokio Marine Holdings, Inc. 49 Framework of the Mid-Term Business Plan and Group Management Enhancing Enterprise Risk Management (ERM) to realize sustainable profit growth and higher capital efficiency even in a changing environment, while maintaining financial soundness Generate capital and cash Achieve sustainable profit growth and improve the risk portfolio in each business domain Achieve sustainable profit growth in each business domain  Domestic non-life : Profit growth as the core business of the Group  Domestic life : Profit growth while maintaining financial soundness as a growth driver of the Group  International insurance: Profit growth while globally diversifying risks as a growth driver of the Group Improve the risk portfolio  Reduce the risks associated with business-related equities  Strengthen control of natural catastrophe risks Efficient deployment of capital and cash Invest for growth  Invest in new businesses with high capital efficiency  Invest today to build foundations for our growth tomorrow Enterprise Risk Management (ERM) Return to shareholders  Increase dividends through profit growth  Achieve an appropriate level of capital via flexible repurchases of shares Improve capital efficiency by diversifying our business portfolio Maintain financial soundness Copyright (c) 2016 Tokio Marine Holdings, Inc. + Enhance ROE + Sustainable profit growth 50 Basic Information (Domestic Non-Life 1) - TMNF  Trend of net premiums written and combined ratio C/R(Private Insurance W/P Basis) Net Premiums Written (billions of yen)  Premium composition by Line (FY2015 net premiums written basis) 103.3% 99.4% 97.9% 97.2% 97.4% Marine 91.2% 3.1% 89.8% 89.2% 2,128.3 Others 12.7% CALI 13.3% P.A. 8.2% Fire 14.3% Auto 48.4% 90.9% 92.0% 93.1% 89.8% 1,892.7 1,928.0 1,912.1 1,813.4 1,736.0 1,742.7 1,783.0 1,869.6 1,966.3 2,036.7 2,135.0  Premium composition by sales channel (FY2015 managerial accounting basis) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015  Statistics of combined ratio and loss ratio (private insurance E/I Basis) FY2011 Net E/I C/R* E/I loss ratio Excluding natural catastrophes Expense ratio 103.8% 69.8% 61.3% 34.0% FY2012 99.6% 66.8% 62.8% 32.8% FY2013 97.2% 65.0% 60.1% 32.2% FY2014 90.6% 58.5% 56.9% 32.2% FY2015 92.7% 60.1% 56.0% 32.6% Financial institutions Others 3.5% 14.3% Auto repair shop 2016 8.8% Projections Auto dealership 20.0% Full-time agents 28.3% Corporate 25.1% FY2016 Projections 91.0% 58.3% 55.8% 32.7%  Market share* (FY2014 net premiums written basis) TMNF 25.6% NF 1.7% *: Net E/I C/R=E/I loss ratio + W/P expense ratio Copyright (c) 2016 Tokio Marine Holdings, Inc. *Japanese non-life market (excluding reinsurance companies) 51 Basic Information (Domestic Non-Life 2) - TMNF  Trend of underwriting results in auto insurance (W/P basis combined ratio) <Factors of profitability deterioration>  Increase in senior drivers with high accident frequency  Decrease in per-policy premiums owing to the progress of the average discount rate under the Grade Rating System Increasing trend in unit repair cost <Measures to improve profitability>  Efforts to decrease business expenses such as operational streamlining  Product and rate revisions Introduction of age-bracket rate plans Revision of the Grade Rating System Other measures to improve underwriting result  103.6% 102.9% 103.8% 102.6% 98.5% 94.0%    98.5% 94.9% 96.0% 91.5% 90.1% 89.9% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Projections  Trend of auto insurance policy renewal ratio, combined ratio and loss ratio FY2011 Policy renewal ratio Net E/I C/R* E/I L/R  Rate revisions and profitability improvements per FY (excluding revisions of the Grade Rating System in non-fleet auto insurance) (billions of yen) FY2012 95.3% 100.2% 69.4% FY2013 95.6% 95.7% 65.3% FY2014 95.6% 91.6% 61.1% FY2015 95.7% 91.4% 60.5% FY2016 Projections - 91.8% 60.9% 95.1% 102.9% 70.7% Revision Jan. 2012 Oct. 2012 Oct. 2013 Oct. 2014 Total FY13 7.0 8.0 4.0 19.0 FY14 FY15 FY16 Projections 1.0 26.0 3.0 30.0 4.0 15.0 19.0 3.0 3.0 *: Net E/I C/R =E/I loss ratio + W/P expense ratio Copyright (c) 2016 Tokio Marine Holdings, Inc. 52 Basic Information (Domestic Life) - TMNL  Growing "Medical & Cancer" market 【Composition of number of in-force policies】 (Individual insurance basis, total of Japanese life insurance market)  Growth rate of number of in-force policies at TMNL 【CAGR of in-force policies from FY2000 to FY2014】*1 *1: Total of individual insurance and individual annuities FY2000 20.2% TMNL*2 Average of Japanese life insurance market*3 +13.3% *2: After merger basis FY2014 35.5% 0 Others 50 Medical & Cancer 100 (unit: millions of policy) +2.9% *3 :Source Insurance Statistics (Seiho Toukeigo) (unit: ten thousands of policy) 150 530 500 470 438 349 283 256 317 378 405 Source: The Life Insurance Association of Japan 219 160 134 87 8 1996 187 106 23 1997 41 57 1998 1999 2000 Number of in-force 2015 2014 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 *4 policies at TMNL (total of individual insurance and individual annuities) 2001 *4:Total of TMNL and former FL Through development of product strategies focusing on “life insurance to protect one's living” in response to customer needs, TMNL achieved 5.3 million in-force policies in FY2015, significantly exceeding the market growth Copyright (c) 2016 Tokio Marine Holdings, Inc. 53 Asset Portfolio  Domestic Non-Life (TMNF)  With regard to "long-term insurance liabilities," we aim to maximize the value of surplus by controlling the interest rate risk based on the principle of strict ALM investments  With regard to "Absolute return investment and lending," we work toward diversification of investments with appropriate risk control, in order to maximize net asset value and increase investment income TMNF  Domestic Life (TMNL)  Excluding assets in separate accounts, most assets are assets for backing long-term insurance liabilities. We aim to maximize the value of surplus by controlling the interest rate risk based on the principle of strict ALM investments TMNL Total Total Assets ¥9.6T (as of Mar. 31, 2016) Assets ¥6.9T (as of Mar. 31, 2016) Assets backing long-term insurance liabilities Mainly yen-denominated fixed income assets Appropriately control the yendenominated interest rate risks of longterm insurance liabilities including deposit-type insurance, with yendenominated fixed income assets 28% Absolute return investment and lending 11% (Including short-term investments) Carefully select investment targets from domestic and foreign bonds, etc. and aim for profit contribution Assets backing long-term insurance liabilities Mainly yen-denominated fixed income assets Business-related equities 23% Appropriately control interest rate risks of life insurance liability Continue to reduce holdings Investments in subsidiaries and affiliates 21% 76% Others Assets in separate accounts 14% Former FL Real estate for own use and non-investment assets 17% Others Short-term investments, etc. 10% Copyright (c) 2016 Tokio Marine Holdings, Inc. 54 Basic Information (International Insurance 1) - Net Premiums Written  Net premiums written in international insurance business 1,800 (billions of yen) 1,610.0 1,600 Life 1,400 1,302.6 1,304.0 Reinsurance 1,200 1,074.5 1,000 North America 800 734.3 544.0 319.5 240.2 118.7 413.9 362.6 526.5 600 499.7 Europe*2 South & Central America Asia & Middle East*2 400 200 0 2004 USD/JPY*1 104.2 2005 118.1 2006 119.1 2007 114.1 2008 91.0 2009 92.1 2010 81.4 2011 77.7 2012 86.5 2013 105.3 2014 120.5 2015 120.6 2016 Projections 112.6 *1: FX rates are as of Dec. 31 of each year (FX rate for FY2016 Projections is as of Mar. 31, 2016) *2: Up to FY2015, Middle East is included in Europe. From FY2016, Middle East will be included in Asia Copyright (c) 2016 Tokio Marine Holdings, Inc. 55 Basic Information (International Insurance 2) - Strategic Expansion 2000 2007 2011 2015 Further Growth, Diversification and Capital Efficiency Further Expansion in High Growth Markets Indian Life Business Established Material Presence in Lloyd's (UK) and the US Developed Footholds in Non-Japanese Business (~2000) business development focused on Japanese clients P&C Emerging Markets Life Emerging Markets  Step by step expansion since 2000  International business grew substantially after 2007 due to transformational acquisitions of Kiln, Philadelphia, Delphi, and HCC 56 Copyright (c) 2016 Tokio Marine Holdings, Inc. MEMO Copyright (c) 2016 Tokio Marine Holdings, Inc. MEMO Copyright (c) 2016 Tokio Marine Holdings, Inc. Disclaimer 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. E-mail: URL : www.tokiomarinehd.com Tel : +81-3-3285-0350 201605261700 Tsuyoshi Nagano President 0:00:00.0 Tokio Marine Group Mid-Term Business Plan “To Be a Good Company 2017” FY2016 Business Plan May 2016 Tokio Marine Holdings, Inc. Table of Contents Ⅰ Tokio Marine Group Business Strategy 1. Progress of the Mid-Term Business Plan 2. ERM & Shareholder Returns Ⅱ Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Reference ◆Abbreviations used in this material TMNF : Tokio Marine & Nichido Fire Insurance Co., Ltd. NF : Nisshin Fire & Marine Insurance Co., Ltd. TMNL : Tokio Marine & Nichido Life Insurance Co., Ltd. FL : Former Tokio Marine & Nichido Financial Life Insurance Co., Ltd. Copyright (c) 2016 Tokio Marine Holdings, Inc. 1 Ⅰ Tokio Marine Group Business Strategy Copyright (c) 2016 Tokio Marine Holdings, Inc. 2 Ⅰ. Tokio Marine Group Business Strategy 1. Progress of the Mid-Term Business Plan 2.ERM & Shareholder Returns Copyright (c) 2016 Tokio Marine Holdings, Inc. 3 1-1. Objectives of the Mid-Term Business Plan Mid-Term Business Plan “To Be a Good Company 2017” ~Evolve business structure to realize sustainable profit growth and higher ROE~ Group total FY2017 outlook Enhance capital efficiency Sustainable profit growth Enhance shareholder returns Adjusted ROE : Upper 9% range *1 Adjusted Net Income : approx. ¥400B *1 Steady growth of dividends in line with profit growth *1: Released in Nov. 2015 Based on market environment as of the end of Mar. 2015 Business Unit Profits Domestic Non-Life (TMNF) CAGR approx. +3% approx. (billions of yen) Domestic Life (TMNL) CAGR*3 approx. +8% (billions of yen) International Insurance CAGR approx. +8% approx. (billions of yen) + 120 125 2014 Normalized basis *2 2017 Plan 2014 1,037.3 Year-end MCEV Increase in MCEV *2: FX effects are excluded and natural catastrophe losses is normalized to an average annual level Copyright (c) 2016 Tokio Marine Holdings, Inc. 2017 Plan Approx. 1,300 100 *3: CAGR of MCEV 2014 Normalized basis *4 2017 Plan - *4: FX rate is as of the end of Mar. 2015, and natural catastrophe losses is normalized to an average annual level 4 1-2. Progress of the Mid-Term Business Plan Steady progress of the Mid-Term Business Plan   Achieved steady growth in FY2015, in line with the Plan Aim for further profit growth in FY2016 Projecting dividend increase backed by our solid earnings power   FY2015 annual dividends per share is planned to be ¥110, an increase by ¥15 YoY FY2016 annual dividends per share is projected to be ¥135, an increase by ¥25 YoY, due to the profit contribution by HCC, etc. Projected to increase by ¥36.1B YoY to ¥388B due to profit contribution by HCC and the progress of the growth strategies in the Mid-Term Business Plan, despite the reversal effect of temporary increase in gains on sales of securities in FY2015 2015 2016 Projections Net incurred losses relating to natural catastrophes (before tax, billions of yen) Domestic Non-Life International Insurance Total Sustainable profit growth Adjusted Net Income (billions of yen) +36.1 323.3 351.9 388.0 77.4 15.7 93.1 48.0 47.0 95.0 Net Income (financial accounting) 2014 247.4 2015 254.5 2016 Projections 265.0 Enhance capital efficiency Adjusted ROE 8.9% +1.4pt 9.1% 10.5% Projected to increase by 1.4pts YoY to 10.5% due to profit contribution by HCC as well as a decrease in adjusted net assets associated with the decline in stock price and the appreciation of the yen, etc. 2014 ROE (financial accounting) 7.9% 2015 7.2% 2016 Projections 7.5% Enhance shareholder returns Copyright (c) 2016 Tokio Marine Holdings, Inc. Dividends Per Share ( yen) +25 (planned) 110 (projections) 135 Projecting dividend increase for 5 consecutive years in line with profit growth Annual dividend is projected to be ¥135 per share (+ ¥25 YoY per share) 95 2014 2015 2016 Projections 5 1-3. Contribution by HCC Impact on adjusted ROE : +2.3pts Adjusted ROE Impact on adjusted EPS : +13% Adjusted EPS 10.5% 8.2% ¥452 ¥514 2016 Projections (excluding HCC) 2016 Projections (including HCC) 2016 Projections (excluding HCC) 2016 Projections (including HCC) Further diversifying risks globally, leading to a more stable group business foundation Insurance Premiums *1 International 35% 71% 26% 2016 Projections 65% (including HCC) Business Unit Profits *2 International 43% 8% HCC Domestic 12% HCC Domestic 29% 36% 64% 2016 Projections (excluding HCC) 2016 Projections (excluding HCC) 31% 2016 Projections (including HCC) 57% Copyright (c) 2016 Tokio Marine Holdings, Inc. *1: Net premiums written + life insurance premiums *2: Domestic businesses include domestic non-life, domestic life, and financial and general 6 1-4. Creating group synergies (1) Pursuing synergies by leveraging the Group's global footprint, high expertise of each group company, and its financial strengths, etc. Global Footprint • Wide network in both developed and emerging countries • Strong customer base Expertise of each group company • Strong underwriting technical expertise • Leading positions in the market and specific areas Synergy Creation Revenue <Examples> Overseas Japan  Providing specialty products of HCC and Philadelphia, etc. to Japanese corporate customers and cross selling through each company's sales network  Joint underwriting of insurance program by Tokio Marine Kiln, HCC and Tokio Marine Insurance Singapore coordinated by Tokio Marine Asia, at a large-scale commercial event in Asia  Joint product development by leveraging the knowhow at Tokio Marine Kiln Copyright (c) 2016 Tokio Marine Holdings, Inc.  Establishing global underwriting capability for D&O, etc. utilizing know-how at HCC  Support for Japanese corporations expanding businesses abroad by utilizing overseas experiences and know-how 7 1-5. Creating group synergies (2) • Investment Enhancing investment return through Delphi’s superior investment expertise Entrust the asset management of a portion of assets held by the Group companies* to Delphi with high investment expertise * Asset management entrusted to Delphi Philadelphia (from Jul. 2014), Tokio Millennium Re (from Jul. 2015), TMNF (from Jan. 2016), HCC (from Mar. 2016) • Capital Optimizing retention strategy and outward reinsurance on a Group basis Expand underwriting capacity of each Group company leveraging the Group’s risk diversification effect Reduce cost of outward reinsurance through intra-Group reinsurance, leveraging the Group’s financial strengths • • Cost Cost reduction through effective use of the Group resources and scale merit Cost reduction by joint purchase of IT system, etc. Optimize resources due to delisting of company purchased and utilizing shared services • Copyright (c) 2016 Tokio Marine Holdings, Inc. 8 1-6. Further integration and alignment in Group decision making Establish Group Chief Officer positions and committees as well as strengthen its functions to globalize and strengthen Group management system  Involvement of top management at overseas subsidiaries in solving Group management issues with their expertise  More focus by the Group CEO on Group management to maximize the Group’s comprehensive capability  Globalization and Strengthening Maximize the Group’s comprehensive capabilities Financial and General Group CEO Group Chief officer (by order of organization) More focus on Group management by the Group CEO Dept. in charge Domestic Non-life Domestic Life International Insurance CRDO Research and Development Research and Development Financial Planning Corporate Planning Global Retention Strategy Human Resources IT Planning Risk Management Committees Major management issues Risk management Asset management IT Retention strategies ,etc. CIO Investment • Enhancing group governance • Utilization of the Group management resources • Involvement in the Group management by overseas talent CFO Financial CRSO Retention Strategy CHRO Human Resources CITO Information Technology CRO Risk Copyright (c) 2016 Tokio Marine Holdings, Inc. Involvement of top management at overseas subsidiaries 9 Ⅰ. Tokio Marine Group Business Strategy 1. Progress of the Mid-Term Business Plan 2.ERM & Shareholder Returns Copyright (c) 2016 Tokio Marine Holdings, Inc. 10 2-1. Promoting Strong ERM (Controlling Risk and Capital) Maintain financial soundness Balance capital and risk to maintain AA credit ratings • • Advance natural catastrophe risk management Ensure our financial base can withstand catastrophic risks Enhance profitability × Sustainable profit growth and enhance capital efficiency • • • Invest in businesses which enhance capital efficiency Improve the profitability of existing businesses Continue to sell business-related equities Control risk and capital in accordance with risk appetite* * Insurance risk control : Pursue sustainable growth, risk diversification (stabilization), and improvement of capital efficiency through global business expansion Investment risk control : Secure liquid assets and stable profits mainly through ALM    Comfortable level of ESR calculated based on 99.95% VaR is 100~130% in light of financial soundness and profitability, and current ESR is sufficient for maintaining financial soundness Business continuity is confirmed even in the event of stress scenario When ESR becomes below 100%, confirm the necessity of action with consideration of the outlook of future profit accumulation and restricted capital Utilize capital buffer 130%*1 *1: Capital level which can maintain AA credit ratings withstanding once-in-a-decade risks • Invest in businesses for growth and take additional risks • Repurchase shares • Prepare for regulation changes and significant changes in business environment 106%*2 Comfortable Level as of the end of Mar. 2016 *2: 128% at 99.5% VaR Confirm the necessity of action Consider to recover capital level Consider the below with consideration of the outlook of future profit accumulation and restricted capital •Refrain from investment in businesses and additional risk-taking •Consider risk reduction measures Copyright (c) 2016 Tokio Marine Holdings, Inc. 100% ESR 99.95% VaR 11 2-2. Promoting Strong ERM (Disciplined Capital Management)   Utilize strict capital model which calculates risk capital based on 99.95%VaR (standard to maintain AA credit rating) and excludes restricted capital, while referring to the method in Solvency Ⅱin Europe, etc. Reflected recent negative interest rate in calculating risk capital  Economic Solvency Ratio (ESR) 111% Factors of changes in net asset value  Contribution of 2H FY15 adjusted net income  Decrease in unrealized gains of business-related equities  Decrease in MCEV associated with etc. interest rate decline  Impact of market changes on ESR and our measures 106%* * 128% at 99.5% VaR — Share price: Continue to sell business-related equities as the impact on ESR associated with the market value fluctuation is large Risk capital Net asset value trillion yen 2.8 3.1 trillion yen Factors of changes in risk capital  Sales of business-related equities  Decrease in risks of business-related equities due to decline in share price  Increase in interest rate risks due to etc. decline in interest rates Risk capital Net asset value — Interest rates: Impact on ESR increased due to the decline of interest rate. While preparing for the future rise in interest rate, control the impact of interest rate fluctuation through ALM — FX rates: Limited impact on ESR, as appreciation of the yen decreases net asset of overseas subsidiaries, whereas decreases FX risks. Policy is to basically limit FX risks trillion yen trillion yen 2.9 3.0 Mar. 31, 2016 106% 115% 96% 110% 103% Sept. 30, 2015 Mar. 31, 2016 Share Price +30% -30% Interest Rate +10bp ¥17,388 Nikkei Stock Average ¥16,758  Net Asset Value Net Asset Value = Consolidated net asset on financial accounting basis + Liability of capital nature (catastrophe loss reserves, price fluctuation reserves, etc.) (after-tax basis) goodwill, etc. -10bp Copyright (c) 2016 Tokio Marine Holdings, Inc. Planned distribution to shareholders Value of life + insurance policies in-force Restricted capital, etc. 12 2-3. Shareholder Returns  Our primary means of shareholder returns is dividends, which we plan to increase in line with profit growth Steady growth of dividends  We pursue steady growth of dividends, and payout ratio as a guide is above 35% of average adjusted net income - FY2015 : Projection for year-end dividends is revised upward by ¥5 to ¥57.5 per share, and annual dividends is planned to increase by ¥15 YoY to ¥110 - FY2016 : Annual dividends is projected to increase by ¥25 YoY to ¥135 per share (payout ratio* of 35%), an increase for five consecutive years *payout ratio to average adjusted net income + Flexible share repurchases  We intend to conduct share repurchases in a flexible manner based on a comprehensive assessment of market conditions, our capital levels, business investment opportunities, and other relevant factors ■ : Dividends per share ¥135 (Projections) ¥110 (Plan) ¥95 ¥70 ¥48 ¥36 ¥48 ¥50 ¥50 ¥50 ¥55 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Copyright (c) 2016 Tokio Marine Holdings, Inc. 13 2-4. Group Asset Management Group Asset Management Concept  With asset and liability management (ALM) at the core, we aim for steady profit growth while ensuring liquidity  Further strengthen investment capability by enhancing coordination among Group companies in Japan and overseas and promoting global investment diversification <Investment policy for each asset>  Domestic bond: Hold for controlling interest rate risks of yen-dominated insurance liabilities while closely watching the market trend  Foreign securities (mainly foreign bonds) : Increase the balance through investment in bonds in the U.S. and Europe by domestic subsidiaries as well as asset expansion at overseas subsidiaries Asset composition of TMHD (Consolidated) ※As of the end of Mar. 2016  Domestic equities (business-related equities): Continue to sell more than ¥100B per year from the perspective of enhancing capital efficiency Investment yield of the Group 2.1% 2.0% 1.0% 2.3% 2.2% Income return Impact from low interest rates in Japan is limited due to investment portfolio centered on long-term bonds and increased foreign assets with higher yield ■ Others ¥3.1T Mainly tangible fixed assets and intangible fixed assets, etc. ■ Cash and deposits ¥1.0T 4.7% 14.4% Total Assets 6.2% ■ Loans ¥0.8T ■ Monetary receivables bought ¥1.3T Mainly absolute return investment & lending by Domestic Non-Life (TMNF) and overseas subsidiaries 4.0% ■ Other securities ¥0.9T Mainly assets in separate accounts held by Domestic Life 4.4% 2013 2014 2015 ¥21.8T 20.8% 10.6% 34.9% Continuous reduction of business-related equities Sold total amount of ¥1.3T*1 since FY2004 Book value*2 has declined approx. by half ■ Foreign securities ¥4.5T Mainly local country bonds held by overseas subsidiaries mainly in the U.S. and Europe ■ Domestic bonds ¥7.6T Domestic government bonds (JGB): Approx. ¥6.8T Mainly bonds for the purpose of ALM by Domestic Life and Non-Life 100 93 2008/3E ■ Domestic equities ¥2.3T Mainly business-related equities held by Domestic Non-Life (TMNF) Copyright (c) 2016 Tokio Marine Holdings, Inc. 66 2012/3E 50 2016/3E 2004/3E *1: Market price at the time of sale *2: Figure at the end of FY2003 is set at index value of 100 14 Ⅱ Business Plan and Strategy by Domain Copyright (c) 2016 Tokio Marine Holdings, Inc. 15 Ⅱ. Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Copyright (c) 2016 Tokio Marine Holdings, Inc. 16 1-1. TMNF FY2016 Projections  Net premiums written is projected to expand due to steady execution of growth strategies, etc.  Business unit profits is projected to increase due to revenue growth as well as the reversal effect of an increase in natural catastrophes losses in FY2015, etc.  Net Premiums Written (billions of yen) CAGR +2.4% +0.3%  Projected to increase by 0.3% YoY due to premium growth in auto, etc., despite the reversal effect of an increase owing to policy 2,135.0 2,128.3 2,036.7 review by customers before the product revisions of fire insurance in FY2015  CAGR from FY2014 is +2.4%, steadily increasing in line with the Mid-Term Business Plan 2014 2015 2016 Projections  Business Unit Profits (billions of yen) +38.0 120.0 158.0  Projected to increase by ¥38.0B YoY due to the reversal effect of an increase in natural catastrophes losses in FY2015, etc.  Growth in FY2016 projection exceeds the target of +3% CAGR* in the Mid-Term Business Plan 113.7 2014 Copyright (c) 2016 Tokio Marine Holdings, Inc. *CAGR from FY2014 normalized basis (approx. ¥120B) in which effect of FX rate is excluded and natural catastrophes losses is normalized to an average annual level 2015 2016 Projections 17 1-2. TMNF Combined Ratio Combined ratio is stable, as a result of measures implemented to improve profitability  Combined Ratio (Private insurance: E/I basis*) 99.6% 97.5% 97.2% 94.4% 90.6% 91.4% 92.7% 90.8% ■ After normalizing natural catastrophes to an average annual basis approx. 92~93% 91.0% 2012 E/I loss ratio (Excluding natural catastrophes) (Natural catastrophes normalized to an average annual basis) Expense ratio 2013 65.0% 60.1% 62.2% 32.2% 2014 58.5% 56.9% 59.2% 32.2% 2015 60.1% 56.0% 58.2% 32.6% 2016 Projections 58.3% 55.8% - 32.7% 2017 Plan 66.8% 62.8% 64.7% 32.8% *: Loss ratio (private insurance E/I basis) + expense ratio (private insurance W/P basis)  Auto Loss Ratio (E/I basis) 69.4% 65.3% 61.1% 60.9% 60.5% 2012 Auto E/I C/R Auto E/I loss ratio Copyright (c) 2016 Tokio Marine Holdings, Inc. 2013 95.7% 65.3% 2014 91.6% 61.1% 2015 91.4% 60.5% 100.2% 69.4% 2016 Projections 91.8% 60.9% 18 1-3. TMNF - Measures to achieve sustainable growth (1) Strengthen customer contacts through productivity improvements to enhance the value delivered to customers to become "the best choice" • Further integration of the business model for life and non-life Expand Comprehensive Discount Super Insurance in Oct. 2016 (millions of policies) 1.92 ●TMNF Number of auto insurance policies 0.85 ●Number of automobiles owned nationwide 110 (managerial accounting basis, changes over the past one-year) (source: Automobile Inspection & Registration Information Association) for 2011/3E 2016/3E 109.9 • Expand product lines applied • Higher discount rates “Super Insurance” Number of in-force policies 95.7% Non-fleet auto Insurance 97.0% 105 103.4 Enhance cross-sell and renewal ratio Renewal Ratio* Super Insurance auto *FY2015 results • Advancing risk consulting services • Strengthen disaster countermeasures and provide BCP planning services based on earthquake disaster prevention plans • Identify risks and provide solutions for Japanese companies expanding businesses overseas 100 2011/3E 2012/3E 2013/3E 2014/3E 2015/3E 2016/2E Growth rate of number of autos* * 2011/3E is set at index value of 100 (billions of yen) 2,200 +4.5% • More edge to our claims-services Strengthen claims-service capability of employees and agents • Provide safety and security to all customers regardless of accident encounter • Further enhance our expertise and customer service capability • Establish system to support claims-service of employees and agents 2,000 Initiatives to strengthen capability for wide-area disasters Enhance Strengthen support + IT system mobility • Quick launch of nation-wide support team, enhancing support capability • Digitize accident report between agents and the company 1,800 1,600 1,400 1,200 1,000 2011 2012 2013 2014 2015 Enhance customer satisfaction Copyright (c) 2016 Tokio Marine Holdings, Inc. Net Premiums Written (all lines) 19 1-4. TMNF - Measures to achieve sustainable growth (2) Promoting R&D to capitalize on changes in business environment Providing new value such as preventive safety and loss reduction measures Drive Agent (for corporate clients) Automatic Accident Report Service (for individual customers) Responding to evolving risks New roles for insurance company • Study and research on legal responsibilities relating to accidents • Participation in demonstration tests on public roads for autonomous vehicles and development of specialized insurance package Auto • Comprehensive service using telematics technology • Automatic accident report service • Safety driving consultation • Accident prevention function which issues warnings when the vehicle is veering off lane Number of foreign tourists visiting Japan* 20 million • Automatic accident reporting process using beacon technology Target by the Government 2020: 40 million 2030: 60 million Inbound Insurance & Services • New travel insurance for foreign tourists after entering Japan, applicable through smart phones • Multi-lingual interpretation services for business organizations Increase in inbound tourists 15 10 5 0 2011 2013 2015 * source : Japan National Tourism Organization Utilization of technological innovation in the value chain of insurance business Technological innovation • Big data • AI Technological Innovation • Sales / Marketing • Pricing / Underwriting • Claims service 20 • Wearable technology Copyright (c) 2016 Tokio Marine Holdings, Inc. (Blank Page) Copyright (c) 2016 Tokio Marine Holdings, Inc. 21 Ⅱ. Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Copyright (c) 2016 Tokio Marine Holdings, Inc. 22 2-1. TMNL FY2016 Projections Aiming for steady growth maintaining financial soundness and profitability by promoting sales shift from saving-type products to protection-type products  New Policies Annualized Premiums (ANP) CAGR +12% +6% 114.1 84.9 119.7 100.4 112.7 107.1 (billions of yen)  New Policies ANP ̶ Projected to increase in line with the Mid-Term Business Plan by limiting the sales of saving-type products and continued launch of protection-type products under the low interest rate market in Japan Excluding long-term saving type products, protectiontype products is projected to increase by 6% YoY Accordingly, the product ratio of ANP other than longterm saving–type products is projected to increase by 11pts YoY to 95% ̶ ̶ 2014 2015 Total of new policies ANP Excluding long-term saving-type products (individual annuities and “whole life with long-term discount”) 2016 Projections  Individual Insurance・Number of New Policies (ten thousands of policies) CAGR +6%  Number of New Policies for Individual Insurance 60 53 58 ̶ Projected to increase by 3% YoY due to new cancer and medical insurance products released in FY2015 despite continuously limiting the sales of saving-type products 2014 Copyright (c) 2016 Tokio Marine Holdings, Inc. 2015 2016 Projections 23 2-2. TMNL - Change in MCEV and measures for low interest rates  Business Unit Profits (Increase in MCEV) (billions of yen) Changes in economic environment (decline in -38.3 interest rates, etc.) payment of shareholders’ dividends 1,037.3 ̶ MCEV is projected to increase by ¥39.0B in FY2016. Ensure profitability by promoting protection-type products while expecting effects of low interest rates 811.6 +39.0 Value of new business and release of discounted value of in-force business, etc. 2015 811.6*1 -187.4 115.6 2016 projections 850.6 39.0 39.0 -303.0 +115.6 Value of new business and release of discounted value of in-force business, etc. 850.6 ̶ Product revisions, etc. have been already made in response to the low interest rates (see below chart). Additional measures will be taken as needed 2014 Year-end MCEV MCEV Increase MCEV Increase *2 *3 Major product revisions, etc. responding to low interest rates FY2015 ■Product revision ・“Whole life with long-term discount” ・Individual annuity ・Single payment whole-life ・Single payment increasing whole-life FY2016 ■Suspension of sales ・Single payment whole-life ・Single payment increasing whole-life ・Single payment endowment (renewal) 1,037.3*1 *1: Figures for FY2014 and FY 2015 are after payment of shareholders’ dividends of the prior fiscal year *2: Excluding the effects of payment of shareholders’ dividends *3: Excluding the effects of payment of shareholders’ dividends and changes in economic environment (MCEV : Market Consistent Embedded Value) An index used to assess the value of life insurance business consistent with the value of financial instruments in the financial market Future economic condition is based on assumptions that the market conditions at the end of Mar. 2016 will continue ■Partial suspension of sales ・“Whole life with long-term discount” ・Whole-life *New sales of single payment endowments and single payment individual annuities were suspended before FY2014 Copyright (c) 2016 Tokio Marine Holdings, Inc. 24 2-3. TMNL - Promotion of “Life Insurance Revolution to Protect One’s Living” Expand and strengthen our unique product line-up which meets the diverse customer needs and serve as a source of stable profit Outpatient treatment (After discharge) Hospitalization / Surgery <Medical insurance> Inability to work (Home care) Nursing care requirement (Permanent disability) <Conventional life insurance> Death Coverage for conventionally untapped area  Extend coverage in response to the latest medical treatment  Proper pricing based on the latest medical data and the streamlining of business operations Introduced unique R (return) function FY2015 New Products In response to the latest medical treatment including chemotherapy Competitive pricing and flexibility in coverage No. of new policies of cancer insurance since its launch in Jul. 2015 : 110K (+205% YoY) Third-sector (Medical/Cancer) New policies ANP (billions of yen) 24.4 19.4 FY2015 Product revision Extended coverage in response to the latest medical treatment No. of new policies of medical insurance since its launch and revision in Nov. 2015 : 140K (+142% YoY) 2014 2015 Continue to launch unique products with coverage for untapped area Copyright (c) 2016 Tokio Marine Holdings, Inc. 25 2-4. TMNL - Strengthening growth potential Achieve growth in all four distribution channels by promoting multi-channel strategies FY2015 Results* +11% Initiatives in FY2016 Channel Composition (life insurance premiums on managerial accounting basis at the end of Mar. 2016 ) Life Partner approx. 10% Bancassurance approx. 10% Non-life Agents Life Professionals approx. 25% approx. 55% Non-life Agents 2014 2015  Develop products which promote integrated sales approach of life and non-life  Enhance sales ability by deploying dedicated salesperson for life  Differentiate from competitors leveraging the highly unique “Premium Series”  Support for establishment of sales system in response to the revision of Insurance Business Act  Strengthen business tie-up with non-life agents through full-time support by life partners at non-life insurance branches 2015 +14% Life Professionals 2014 2015 +15% Life Partners 2014  Recruiting sales agents with capability +21% Bancassurance 2014 2015  Sales promotion of protection-type products with installment plans *Life insurance premiums on managerial accounting basis at the end of Mar. 2016 excluding long-term saving-type products Further growth of the major four distribution channels with competitive products and sales ability Copyright (c) 2016 Tokio Marine Holdings, Inc. 26 Ⅱ. Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Copyright (c) 2016 Tokio Marine Holdings, Inc. 27 3-1. International Insurance - FY2016 Projections  Continue initiatives to achieve further profit growth by maintaining underwriting discipline even under the softening market  With contribution from HCC, promote further diversification of risks and expand profit growth as well as accelerate initiatives for creating synergies to generate additional values Net Premiums Written (billions of yen) +23% 1,610.0 (incl. HCC) 1,304.0 1,230.0 Business Unit Profits (billions of yen) +21% 159.0 (incl. HCC) 145.5 115.0 1,302.6 1,160.0 1,261.0 (excl. HCC) 131.8 100.0 115.0 (excl. HCC) 2014 Results Normalized basis* Applied FX rate Dec. 31, 2014 (USD/JPY) JPY 120.5 Applied FX rate (USD/JPY) 2015 Dec. 31, 2015 JPY 120.6 2016 Projections Mar. 31, 2016 JPY 112.6 Mar. 31, 2016 JPY 112.6 Results Normalized basis* 2014 Applied FX rate Dec. 31, 2014 (USD/JPY) JPY 120.5 2015 Dec. 31, 2015 JPY 120.6 2016 Projections Mar. 31, 2016 JPY 112.6 *Excluding yen conversion FX effects Mar. 31, 2016 Applied FX rate JPY 112.6 (USD/JPY) *Excluding yen conversion FX effects. Natural catastrophe losses is normalized to an average annual level  Projected to increase by 23% YoY mainly due to contribution from HCC  Projected to increase even on a normalized basis excluding contribution from HCC and the effect of the appreciation of the yen Composition of net premiums written (2016 Projections) South & Central America 7% Asia. Middle East 8% Reinsurance 8% Europe 9% 5% Copyright (c) 2016 Tokio Marine Holdings, Inc.  Projected to increase by 21% YoY mainly due to contribution from HCC  Projected to increase even on a normalized basis excluding contribution from HCC in FY2016 and normalizing natural catastrophe losses in FY2015 to an average annual level Life 6% HCC 22% Phila delphia 21% Delphi 14% North America 62%  With contribution from HCC, pursue further growth opportunities and accelerate the establishment of diversified business portfolio  Pursue balanced growth in both developed and emerging markets through “organic growth” and “strategic M&A” 28 Others 3-2. North America - Philadelphia Maintaining profit growth outperforming the market through underwriting discipline and action  Highly competitive business model focusing on niche markets  Maintaining C/R lower than market average through underwriting discipline  Maintaining high renewal ratio of in-force policies and continuing rate increases through strong franchise network Net Premiums Written 342.3 323.9 3,190 319.0 Normalized basis 302.0 3,020 Composition of Premiums Income (2015) ¥332.0bil ■ Human Services ■ Real Estate ■ Public Service ■ Mgmt & Prof. ■ Sports & Rec. ■ Other 30% 18% 13% 13% 9% 17% 2014 2015 2016 Projections Business Unit Profits 91% 91% 46.4 ¥40.0bil 38.0 Combined Ratio C/R 94% 110% US P&C market average Philadelphia 42.3 41.0 Normalized basis 100% 90% 2014 2015 2016 Projections 80% FY10 FY11 FY12 FY13 FY14 FY15  Projecting steady profit growth even under the softening market Copyright (c) 2016 Tokio Marine Holdings, Inc. 29 3-3. North America - Delphi Maintaining profit growth through profound investment expertise as well as further developing specific products and specific markets  Highly competitive business model focusing on market for employee benefits and excess workers compensation  Utilization of profound investment expertise  Maintaining high retention ratio and continuing rate increases in main products Net Premiums Written 241.3 236.6 225.0 221.0 Normalized basis 2,210 2,250 Composition of Premiums Income (2015) ¥232.0bil Non-life 38% ■ Disability ■ Group life ■ Others (Life) Life 62% 33% 22% 7% Life 62% ■ Excess W/C ■ Others (Non-life) 22% 16% Non-life 38% 95.2% 2014 2015 2016   Projections Business Unit Profits 96% 96% 44.4 40.2 39.0 Normalized basis 36.0 Combined Ratio C/R 98% 110% US P&C market average Delphi ¥42.0bil 100% 90% 2014 2015 2016 Projections 80%  Projecting profit growth mainly due to an increase in investment income Copyright (c) 2016 Tokio Marine Holdings, Inc. FY10 FY11 FY12 FY13 FY14 FY15 30 3-4. North America - HCC A world leading specialty insurer Aiming for further profit growth through synergy creation while maintaining high profitability  Diverse and highly profitable portfolio  Disciplined growth and best-in-class underwriting profitability  New business development and further profit expansion through synergy creation Net Premiums Written ¥349.0bil Composition of Premiums Income (2015) LOBs that are less dependent on the P&C market cycles (approx. 58%) Medical Stop-loss Agriculture US Surety Sports & Entertainment International Surety & Credit Other A&H US Credit 25% 16% 4% 3% 3% 4% 2% 2016 Projections Total 58% Business Unit Profits C/R 88% ¥44.0bil 100% 110% Combined Ratio US P&C market average HCC 90% 2016 Projections 80%  Further strengthen business platform of North America due to profit contribution from FY2016 Copyright (c) 2016 Tokio Marine Holdings, Inc. FY10 FY11 FY12 FY13 FY14 FY15 31 3-5. Europe / Reinsurance  Expanding profit mainly in specialty business in the Lloyd’s market  Maintaining underwriting discipline as continuous softening of the European market is expected Europe  Under the softening market, continue maintaining stable profit by promoting geographical and product line diversification  Expanding source of profit through solution offering to meet customer needs Reinsurance Net Premiums Written Normalized basis 152.4 148.4 134.0 ¥147.0bil Net Premiums Written Normalized basis 188.3 149.5 137.0 175.0 ¥134.0bil 129.0 2014 2015 96% 2016 Projections   C/R 94% 2014 2015 2016 Projections C/R 97% Business Unit Profits Normalized basis 94% 19.7 10.0 Business Unit Profits Normalized basis 93% 93% ¥9.0bil 8.0 1.0 9.6 1.0 10.6 ¥9.0bil 2.0 2014 2015 2016 Projections 2014 2015 2016 Projections  Projected to increase mainly due to the reversal effect of large losses such as Tianjin port explosion and foreign exchange losses in FY2015  Projected to increase mainly due to the reversal effect of large losses in FY2015 Tokio Marine Kiln Premium composition of Lloyd’s business Others Aviation 4% 6% 10% By line 2015 110% Combined Ratio Lloyd’s market average 100% Change in portfolio (Earned premiums basis) non-natcat natcat natcat approx. approx. Combined Ratio 130% 110% 90% 70% 50% 30% FY07 FY09 * Peer average* TMR TMK (Lloyd’s business) non-natcat 40% natcat A&H Property & Liability 54% Re 9% insurance 17% Marine 80% 90% FY11 FY13 FY15 2007 80% 2011 2015 FY10 FY11 FY12 FY13 FY14 FY15 Copyright (c) 2016 Tokio Marine Holdings, Inc. * Average of 12 peer companies as below: (Renaissance Re, Validus, Ace(R/I only), Axis(R/I only), Montpelier Re, Markel, AWAC, Arch, Endurance, Aspen, Everest Re, Partner Re) 32 3-6. Emerging Countries South & Continue profit growth by providing products Central and services which meet the needs of customers through high quality operation America Net Premiums Written 132.1 Normalized basis 91.0 Asia Achieve growth in the retail market by expanding distribution channels and Middle rolling-out the best-practice within the Group East Life Non-life Normalized Net Premiums Written basis 118.7 105.0 102.7 105.0 ¥117.0bil 115.7 112.0 ¥124.0bil 117.9 105.0 82.9 81.0 ¥94.0bil 2014 2015 2016 Projections 2014 2015 2016 Projections Normalized basis 2014 2015 2016 Projections Business Unit Profits 100% 100% C/R 100% Business Unit Profits 91% 91% 14.8 13.0 C/R 95% 5.8 Normalized basis 3.0 2014 5.3 5.0 17.1 ¥4.0bil 14.0 9.4 ¥10.0bil 8.0 0.6 2015 2016 Projections 2014 2015 2016 Projections 2014 ¥2.0bil 1.0 2015 2016 Projections  Continue to aim for solid profit growth, although projected to decrease mainly due to the effect of change in tax law in Brazil  Maintaining high growth outperforming market and profitability in auto insurance as the main business  Projected to decrease due to the reversal effect of temporary increase factors in FY2015  Projected to increase due to the reversal effect of a decrease in unrealized gains associated with the decline in stock prices in FY2015, etc. Brazil (Local currency basis premium) Market CAGR +10% BRL(millions) 3,000 2,000 1,000 FY12 FY13 FY14 FY15 2013-2015 Major Asian Countries (Non-life gross premium CAGR) Tokio Marine CAGR +21% Copyright (c) 2016 Tokio Marine Holdings, Inc. 33 3-7. International Insurance - FY2016 Projections by Region Net Premiuns Written (billions of yen) YoY Change 328.1 -10.3 -9.3 349.0 -1.4 14.2 8.2 -54.3 294.8 11.0 % 49% -3% -4% -1% 14% 7% -29% 24% 13% (Ref.) (Excluding *3 FX effects) Business Units Profits (billions of yen) YoY Change 33.3 -6.4 -2.4 44.0 0.9 -1.3 -4.8 -1.6 26.6 1.3 % 35% -14% -5% 11% -25% -33% -16% 20% 231% (Ref.) (Excluding *3 FX effects) C/R 2014 2015 2016 Projections 2014 2015 2016 Projections 2014 2015 2016 Projections North America (incl. HCC)   Philadelphia   Delphi   HCC Europe*4 South & Central Asia & Middle East*4 Reinsurnace Total Non-Life* Life 1 631.2 323.9 236.6 152.4 132.1 118.7 149.5 1,184.7 117.9 665.8 342.3 241.3 148.4 102.7 115.7 188.3 1,221.1 82.9 994.0 332.0 232.0 349.0 147.0 117.0 124.0 134.0 1,516.0 94.0 60% 4% 3% 9% 11% 11% -24% 32% 15% 87.2 42.3 40.2 19.7 5.8 17.1 9.6 138.6 9.4 95.6 46.4 44.4 8.0 5.3 14.8 10.6 134.3 0.6 129.0 40.0 42.0 44.0 9.0 4.0 10.0 9.0 161.0 2.0 44% -8% 1% 24% -27% -30% -10% 28% 187% 94% 91% 96% 94% 100% 91% 93% 94% - 94% 91% 96% 96% 100% 91% 93% 95% - 93% 94% 98% 88% 94% 100% 95% 97% 94% - Total*2 1,302.6 1,304.0 1,610.0 305.9 23% 31% 145.5 131.8 159.0 27.1 21% 29% 94% 95% 94% *1: Total Non-Life figures include some life insurance figures of composite overseas subsidiaries *2: After adjustment of head office expenses *3: Local currency basis *4: Before, Middle East was included in Europe, but from FY2016, Middle East will be included in Asia (same for FY2014 and FY2015 in the above chart) 2014 Applied FX rate As of endDec. 2014 2015 As of endDec. 2015 2016 Projections As of endMar. 2016 Change -7% -9% 3% 3% (USD / JPY) (GBP / JPY) (Brazilian Real / JPY) Y) (Malaysian Ringgit / JPY ¥120.5 ¥187.0 ¥45.3 ¥34.4 ¥120.6 ¥178.7 ¥30.4 ¥28.0 ¥112.6 ¥161.9 ¥31.3 ¥28.8 Copyright (c) 2016 Tokio Marine Holdings, Inc. 34 (Blank Page) Copyright (c) 2016 Tokio Marine Holdings, Inc. 35 Reference a ・Tokio Marine Holdings Key Statistics ・Return to Shareholders ・FY2015 Results Overview ・FY2016 Projections Overview ・Definition and Reconciliation of Adjusted Net Income, Adjusted Net Assets and Adjusted ROE ・Definition and Reconciliation of Business Unit Profits ・Impact of FX rate change on the Group’s Financial Results ・Long-term Vision and Mid-Term Business Plan "To Be a Good Company 2017" b c ・Initiatives for “Sustainable Profit Growth” ・Framework of the Mid-Term Business Plan and Group Management ・Basic Information (Domestic Non-Life) - TMNF ・Basic Information (Domestic Life) - TMNL ・Asset Portfolio ・Basic Information (International Insurance) d Copyright (c) 2016 Tokio Marine Holdings, Inc. 36 Tokio Marine Holdings Key Statistics FY2006 Net income (billions of yen) Shareholders' equity after tax (billions of yen) EPS (yen) BPS (yen) ROE PBR Adjusted net income (billions of yen) Adjusted net assets (billions of yen) FY2007 108.7 2,563.5 133 3,195 3.6% 1.15 99.4 15.1 29.7 -1.0 60 FY2008 23.1 1,627.8 29 2,067 1.1% 1.16 5.1 -57.2 20.8 -21.1 50 FY2009 128.4 2,169.0 163 2,754 6.8% 0.96 46.2 52.0 76.5 -9.4 95 FY2010 71.9 1,886.5 92 2,460 3.5% 0.90 20.4 27.5 24.8 -0.7 187 FY2011 6.0 1,839.6 7 2,399 0.3% 0.95 30.7 2,301.6 40 3,001 1.3% 0.76 -26.1 15.9 -11.9 2.6 206 FY2012 129.5 2,340.7 168 3,052 6.2% 0.87 163.1 2,746.5 212 3,580 6.5% 0.74 48.3 110.3 69.2 -18.7 115 FY2013 184.1 2,712.7 239 3,536 7.3% 0.88 243.7 3,172.5 317 4,135 8.2% 0.75 34.0 104.5 136.9 2.5 109 FY2014 247.4 3,578.7 323 4,742 7.9% 0.96 323.3 4,103.4 423 5,437 8.9% 0.83 122.5 139.8 145.5 4.0 112 FY2015 254.5 3,484.7 337 4,617 7.2% 0.82 351.9 3,599.3 466 4,769 9.1% 0.80 126.0 -188.1 131.8 7.3 122 *1 93.0 3,398.4 112 4,128 2.8% 1.06 89.0 48.2 28.6 3.8 45 Financial accounting basis KPI Adjusted EPS (yen) Adjusted BPS (yen) Adjusted ROE Adjusted PBR Domestic non-life insurance business Business Unit Profits*2 (billions of yen) Domestic life insurance business International insurance business Financial and general businesses Sales of business-related equity holdings (billons of yen) 2007/3E Adjusted number of issued and outstanding shares (thousands of shares) Market capitalization (billions of yen) Share price (yen) Percentage change (Reference) TOPIX Percentage change 2008/3E 802,231 2,960.6 3,680 - 15.6% 1,212.96 - 29.2% 2009/3E 787,562 1,926.8 2,395 - 34.9% 773.66 - 36.2% 2010/3E 787,605 2,118.3 2,633 9.9% 978.81 26.5% 2011/3E 766,820 1,789.3 2,224 - 15.5% 869.38 - 11.2% 2012/3E 766,928 1,827.1 2,271 2.1% 854.35 - 1.7% 2013/3E 767,034 2,039.2 2,650 16.7% 1,034.71 21.1% 2014/3E 767,218 2,383.9 3,098 16.9% 1,202.89 16.3% 2015/3E 754,599 3,438.0 4,538.5 46.5% 1,543.11 28.3% 2015/9E 754,685 2,878.6 3,800 - 16.3% 1,347.20 - 12.7% *3 823,337 3,594.9 *4 4,360 - 6.4% 1,713.61 - 0.8% *1 *2 *3 *4 FY2015: the figure is "Net income attributable to owners of the parent" FY2006-2014 figures are "Adjusted earnings" (Former KPI), domestic life insurance business are presented on an TEV (Traditional Embedded Value) basis All figures exclude the number of treasury shares held from the total number of the shares issued and are shown on a basis after a share-split 1-500 in Sep. 2006 All figures are shown on a basis after a share-split 1-500 in Sep. 2006 Copyright (c) 2016 Tokio Marine Holdings, Inc. 37 Return to Shareholders FY2006 Dividends per share Dividends total 36yen 29.8bn yen FY2007 48yen 38.7bn yen FY2008 48yen 38.0bn yen FY2009 50yen 39.4bn yen FY2010 50yen 38.6bn yen FY2011 50yen 38.3bn yen FY2012 55yen 42.2bn yen FY2013 70yen 53.7bn yen FY2014 FY2015 FY2016 Projections 135yen 101.8bn yen 95yen 110yen (plan) 72.2bn yen 83.0bn yen Share repurchases*1 Total distributions to shareholders 85.0bn yen 90.0bn yen 50.0bn yen 88.0bn yen 39.4bn yen 50.0bn yen 88.6bn yen 38.3bn yen 42.2bn yen - 50.0bn yen 83.0bn yen TBD TBD 114.8bn yen 128.7bn yen 53.7bn yen 122.2bn yen Adjusted net income Average adjusted net income Payout ratio*2 30.7bn yen 163.1bn yen 243.7bn yen 323.3bn yen 351.9bn yen 220.0bn yen 38% 388.0bn yen 290.0bn yen 35% Adjusted net income was adopted as a new KPI in FY2015. (Figures from FY2011 to FY2014 are adjusted net income.) Key Statistics from FY2006 to FY2014 are shown in Reference 2 table. <Refernece1 : Financial accounting basis> Net income (Consolidated) Payout ratio <Refernece2 : Former KPI> Adjusted earnings Adjusted earnings (excluding EV) Average adjusted earnings (excluding EV)*3 Payout ratio*2 169.7bn yen 143.2bn yen - 52.5bn yen 165.4bn yen 121.5bn yen 128.1bn yen 90.0bn yen 100.0bn yen 33% 39% 4.7bn yen 113.4bn yen 80.0bn yen 48% 85.0bn yen 46% 72.0bn yen - 19.5bn yen 209.1bn yen 278.1bn yen 412.0bn yen 44.5bn yen - 35.4bn yen 80.0bn yen 48% 80.0bn yen 48% 98.8bn yen 173.6bn yen 272.2bn yen 85.0bn yen 110.0bn yen 155.0bn yen 50% 49% 47% 93.0bn yen 108.7bn yen 32% 36% 23.1bn yen 128.4bn yen 165% 31% 71.9bn yen 54% 6.0bn yen 129.5bn yen 184.1bn yen 247.4bn yen 639% 33% 29% 29% 254.5bn yen 33% 265.0bn yen 38% *1: On a repurchase year basis. FY2006 figure excludes JPY57.8B of stock exchange between Nisshin Fire *2: Until FY2014: payout ratio to average adjusted earnings (exluding EV) From FY2015: payout ratio to average adjusted net income *3: Excludes effects from the Great East Japan Earthquake and Thai Flood Copyright (c) 2016 Tokio Marine Holdings, Inc. 38 FY2015 Results Overview (Consolidated)  Net Premiums Written (billions of yen, except for %) • FY2014 ■Ordinary income (TMHD Consolidated) Net premiums written (TMHD Consolidated) Life insurance premiums (TMHD Consolidated) FY2015 4,579.0 3,265.5 471.6 385.8 377.2 9.7 29.0 145.7 5.7 - 181.5 254.5 301.6 6.1 14.7 111.5 3.4 - 183.0 YoY Change % Increased both in domestic non-life business and overseas subsidiaries 4,327.9 3,127.6 220.4 358.1 264.0 17.6 251.0 137.9 251.2 27.6 113.1 - 7.9 8.3 - 9.4 - 0.4 - 75.9 7.1 116.2 - 6.4 - 14.0 - 13.0 0.2 - 75.8 + 5.8% + 4.4% + 114.0% + 7.7% + 42.9% - 45.0% + 40.3% - 6.1% - 8.0%  Life Insurance Premiums • Increased due to a steady increase in in-force policies and a decrease in surrender of variable annuities in domestic life business, etc. ■Ordinary profit (TMHD Consolidated) Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.) *1 20.6 155.1 6.2 - 105.6 247.4 185.3 12.5 28.8 124.5 3.2 - 107.1  Ordinary Profit • Domestic Non-Life Underwriting profit decreased despite an increase in net premiums earned due to (i) increase in net incurred losses relating to natural catastrophes, (ii) higher large losses and (iii) increase in net provision for catastrophe loss reserves, etc.. Net investment income and other increased due to an increase in dividends from subsidiaries and an improvement of gains/losses on derivatives, in addition to an increase in gains on sales of securities, etc. ■Net income attributable to owners of the parent*2 Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life*1 Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.) *1 *2 + 2.9% + 62.8% - 51.2% - 48.9% - 10.4% + 6.8% • Domestic Life Increased due to the reversal of contingency reserves associated with surrender of variable annuities, etc. Since Tokio Marine & Nichido Life (TMNL) and Tokio Marine & Nichido Financial Life (FL) merged on October 1st 2014, FY2014 results for TMNL are the sum of the results of the two companies. "Net income attributable to owners of the parent" shows figures for former "Net income" • Overseas Subsidiaries Decreased due to large losses and foreign exchange losses on a local accounting basis, etc. in addition to the appreciation of the yen against emerging market currencies despite a decrease in net incurred losses relating to natural catastrophes 【KPI for the Group Total】 ■Adjusted net income 323.3 351.9 28.6 + 8.8%  Net Income attributable to owners of the parent*2 • Increased due to the factors above  Adjusted Net Income • Copyright (c) 2016 Tokio Marine Holdings, Inc. Adjusted net income which excludes the effect of an increase in net provision for catastrophe loss reserves, etc., increased 39 FY2015 Results Overview (Business Unit Profits) (billions of yen) Business Domain FY2014 Results FY2015 Results YoY Change 3.5 6.3 -3.4 0.7 -355.5 -357.1 -13.7 8.3 -11.4 -0.5 -2.5 1.0 -4.3 -8.8  Domestic Non-Life TMNF: Increased by ¥6.3B YoY to ¥120.0B  Improvement of gains/losses on derivatives Increase in net incurred losses relating to natural catastrophes and large losses  Domestic Non-Life TMNF NF Other Domestic Life*1・2 TMNL International Insurance North America Europe (incl. Middle East) South & Central America Asia Reinsurance International Non-Life International Life Financial & General *3 122.5 113.7 12.2 -3.4 167.4 169.7 145.5 87.2 19.6 5.8 17.3 9.6 138.6 9.4 126.0 120.0 8.8 -2.7 -188.1 -187.4 131.8 95.6 8.1 5.3 14.7 10.6 134.3 0.6  Domestic Life TMNL : Decreased by ¥357.1B YoY to ¥187.4B *   Effects of changes in economic conditions including a decline in interest rates Reversal effect of the decrease in corporate tax rate in FY2014, etc. * Increase in MCEV excluding the effects of changes in economic conditions such as decline in interest rates is ¥115.6B  International Insurance Decreased by ¥13.7B YoY to ¥131.8B    Decrease in net incurred losses relating to natural catastrophes Increase in large losses Increase in foreign exchange losses on local accounting basis 4.0 7.3 3.3 *1: Excluding capital transactions *2: Regarding Domestic Life, because MCEV was adopted, which is effective from FY2015, FY2014 figure is also described based on MCEV *3: International Non-Life figures include some life insurance figures of composite overseas subsidiaries Copyright (c) 2016 Tokio Marine Holdings, Inc. 40 FY2016 Projections Overview (Consolidated)  Net Premiums Written • (billions of yen, except for %) ■Ordinary income (TMHD Consolidated) Net premiums written (TMHD Consolidated) Life insurance premiums (TMHD Consolidated) FY2015 Results 4,579.0 3,265.5 471.6 385.8 377.2 9.7 29.0 145.7 5.7 - 181.5 254.5 301.6 6.1 14.7 111.5 3.4 - 183.0 FY2016 Projections 3,460.0 800.0 380.0 309.0 6.4 22.9 164.1 4.3 - 126.7 265.0 245.0 4.3 15.6 120.7 3.0 - 123.6 YoY Change % Increase mainly due to HCC consolidation despite the appreciation of the yen Increase due to an increase in in-force policies and a decrease in surrender of variable annuities in domestic life business as well as HCC consolidation, etc.  Life Insurance Premiums • 194.4 328.3 - 5.8 - 68.2 - 3.3 - 6.1 18.3 - 1.4 54.8 10.4 - 56.6 - 1.8 0.8 9.1 - 0.4 59.4 + 6.0% + 69.6% - 1.5% - 18.1% - 34.1% - 21.1% + 12.6% - 24.8% ■Ordinary profit (TMHD Consolidated) Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.)  Ordinary Profit • Domestic Non-Life Underwriting profit is projected to increase due to (i) assuming an average level of net incurred losses relating to natural catastrophes and (ii) a lowering of the provision rate for catastrophe loss reserves in auto group at TMNF, etc.. Net investment income and other is projected to decrease due to a decrease in dividends from subsidiaries and the reversal effects of gains on derivatives in FY2015, etc. ■Net income attributable to owners of the parent Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.) 【KPI for the Group Total】 + 4.1% - 18.8% - 30.0% + 5.7% + 8.2% - 14.2% • Domestic Life Decrease due to a decrease in amount taken down from contingency reserves associated with maturities of policies at former FL, etc. • Overseas Subsidiaries + 10.3% ■Adjusted net income 351.9 388.0 36.1 Increase due to HCC consolidation and the reversal effect of large losses in FY2015, etc. despite the appreciation of the yen and assuming an average level of natural catastrophe losses which were relatively low in FY2015  Net Income attributable to owners of the parent • Increase due to the factors above and the reversal effect of reduction of deferred tax assets owing to the decrease in corporate tax rate in FY2015, etc. Adjusted net income which excludes the effect of an increase in amortization of goodwill associated with HCC consolidation, etc., 41 is projected to increase  Adjusted Net Income • Copyright (c) 2016 Tokio Marine Holdings, Inc. FY2016 Projections Overview (Business Unit Profits) (billions of yen) Business Domain FY2015 Results FY2016 Projections YoY Change 39.0 38.0 -1.8 1.7 227.1 226.4 27.1 33.3 0.9 -1.3 -4.8 -1.6 26.6 1.3  Domestic Non-Life TMNF: Projected to increase by ¥38B YoY to ¥158B  Decrease in net incurred losses relating to natural catastrophes and large losses  Reversal effect of an improvement of gains/losses on derivatives in FY2015 Domestic Non-Life TMNF NF Other Domestic Life*1 TMNL International Insurance North America Europe South & Central America Asia (incl. Middle East) Reinsurance International Non-Life International Life Financial & General *2 126.0 120.0 8.8 -2.7 -188.1 -187.4 131.8 95.6 8.0 5.3 14.8 10.6 134.3 0.6 165.0 158.0 7.0 -1.0 39.0 39.0 159.0 129.0 9.0 4.0 10.0 9.0 161.0 2.0  Domestic Life TMNL : Projected to increase by ¥226.4B YoY to ¥39B  Reversal effect of changes in economic conditions including a decline in interest rates in FY2015  Steady increase in new policies  International Insurance Projected to increase by ¥27.1B YoY to ¥159B  HCC consolidation  Reversal effect of large losses and foreign exchange losses in FY2015  Assuming an average level of natural catastrophe losses which were relatively low in FY2015 7.3 4.0 -3.3 *1: Excluding capital transactions *2: International Non-Life figures include some life insurance figures of composite overseas subsidiaries Copyright (c) 2016 Tokio Marine Holdings, Inc. 42 Definition of Adjusted Net Income (New from FY2016) / Adjusted Net Assets / Adjusted ROE Definition of Adjusted Net Income / Adjusted Net Assets / Adjusted ROE  Adjusted Net Income*1 Adjusted Net Income = Net income (consolidated)*2 Provision for + catastrophe loss reserves*3 + Provision for contingency reserves*3 + Provision for price fluctuation reserves*3 Gains or losses on sales or valuation of ALM*4 bonds and interest rate swaps Gains or losses on sales or valuation of fixed assets and business investment equities + Amortization of goodwill and other intangible fixed assets Other extraordinary gains/losses, valuation allowances, etc  Adjusted Net Assets*1(average balance basis) Adjusted Net Assets = Net assets (consolidated) + Catastrophe loss reserves + Contingency reserves + Price fluctuation reserves Goodwill and other intangible fixed assets  Adjusted ROE Adjusted ROE = Adjusted Net Income ÷ Adjusted Net Assets *1: Each adjustment is on an after-tax basis *2: Net income is attributable to owners of the parent *3: Reversals are subtracted *4: ALM: Asset Liability Management. Excluded as counter balance items against market value fluctuations of liabilities under ALM Difference Between New Definition and Former Definition “Gains or losses on sales or valuation of business investment equities” is added to the adjusting items for Adjusted Net Income (See bold underline text portion). <Treatment of gains or losses on sales or valuation for the types of equities> Adjusted Net Income (new) Adjusted Net Income (former) (note1) Equities held for the purpose of gains derived from the increase in the market Absolute return investments (note1) Included Included value and/or the dividend income (note2) Domestic equities and other securities held by domestic subsidiaries for the main purpose of strengthening business relationships (note3) Equities and other securities other than Absolute return investments, Business-related equities and Investments in subsidiaries and affiliates (such as equities and other securities substantially equivalent to Investments in subsidiaries and affiliates, but not treated as Investments in subsidiaries and affiliates under the applicable accounting principles) Business-related equities (note2) Included Excluded (excluded as “other extraordinary gains/ losses) Excluded Included Excluded (excluded as “other extraordinary gains/ losses) Included Investments in subsidiaries and affiliates Business investment equities (note3) Copyright (c) 2016 Tokio Marine Holdings, Inc. 43 Reconciliation of Adjusted Net Income / Adjusted Net Assets (billions of yen)  Adjusted Net Income*1 FY2015 Results FY2016 Projections YoY Change  Adjusted Net Assets FY2015 Results FY2016 Projections YoY Change  Adjusted ROE FY2015 Results FY2016 Projections YoY Change Net income attributable to owners of the parent (consolidated)*2 *3 254.5 265.0 10.4 Net assets(consolidated) 3,484.7 3,605.0 120.3 Net income(consolidated) 254.5 265.0 10.4 Provision for catastrophe loss reserves +68.9 +31.0 -37.9 Catastrophe loss reserves +769.1 +806.0 36.9 Net assets(consolidated)*5 FInancial acccounting basis ROE *5 average balance basis 3,531.7 3,545.0 13.3 Provision for contingency reserves *3 -0.2 - 0.2 Contingency reserves +34.2 +34.0 -0.2 7.2% 7.5% + 0.3pt Provision for price fluctuation reserves *3 +3.7 *4 +3.0 -0.7 Price fluctuation reserves +62.8 +67.0 4.2 Gains or losses on sales or valuation of ALM bonds and interest rate swaps -22.6 - 22.6 Goodwill and other intangible fixed assets -751.5 -752.0 -0.5 FY2015 Results FY2016 Projections YoY Change Gains or losses on sales or valuation of fixed assets and business investment equities (FY2015 Results : Gains or losses on sales or valuation of fixed assets) +1.8 -4.0 -5.8 Adjusted Net Assets 3,599.3 3,761.0 161.7 Adjusted Net Income 351.9 388.0 36.1 Amortization of goodwill and other intangible fixed assets Other extraordinary gains/losses, valuation allowances, etc. +34.3 +93.0 58.7 Adjusted Net Assets*5 3,851.4 3,680.0 -171.4 +11.3 - -11.3 Adjusted ROE *5 average balance basis 9.1% 10.5% + 1.4pt Adjusted Net Income *1 *2 *3 *4 351.9 388.0 36.1 Each adjustment is on an after-tax basis "Net income attributable to owners of the parent" shows figures for former "Net income" Reversals are subtracted ALM: Asset Liability management Excluded as counter balance items against market value fluctuations of liabilities under ALM Copyright (c) 2016 Tokio Marine Holdings, Inc. 44 Definition of Business Unit Profits (New from FY2016) Definition of Business Unit Profits  Non-life insurance business Business Unit Profits*1 = Net income Provision for + catastrophe loss reserves*2 + Provision for price fluctuation reserves*2 Gains or losses on sales or valuation of ALM*3 bonds and interest rate swaps Gains or losses on sales or valuation of fixed assets, business related equities and business investment equities *1: Each adjustment is on an after-tax basis Other extraordinary gains/losses, valuation allowances, etc. -  Life insurance business*4 Business Unit Profits*1 Increase in EV*5 = during the current fiscal year + Capital transactions such as capital increase *2: Reversals are subtracted *3: ALM: Asset Liability Management. Excluded as counter balance items against market value fluctuations of liabilities under ALM *4: For life insurance companies in certain regions, Business Unit Profits is calculated by using the definition in Other businesses (head office expenses, etc. are deducted from profits) *5: EV: Embedded Value. An index that shows the net present value of profits to be gained from policies in-force is added to the net asset value  Other businesses Net income determined in accordance with financial accounting principles Difference Between New Definition and Former Definition <Change in the definition of Business Unit Profits for non-life insurance business> Among the adjusting items for Business Unit Profits, “Gains or losses on sales or valuation of equity holdings” is replaced by “Gains or losses on sales or valuation of business-related equities and business investment equities.” (See bold underline text portion). <Treatment of gains or losses on sales or valuation for the types of equities> Business Unit Profits (new) Business Unit Profits (former) Absolute return investments (note1) Included Excluded (note1) Equities held for the purpose of gains derived from the increase in the market value and/or the dividend income (note2) Domestic equities and other securities held by domestic subsidiaries for the Business-related equities (note2) Excluded Excluded (excluded as “other extraordinary gains/ losses) Excluded Excluded Excluded (excluded as “other extraordinary gains/ losses) Excluded main purpose of strengthening business relationships (note3) Equities and other securities other than Absolute return investments, Business-related equities and Investments in subsidiaries and affiliates (such as equities and other securities substantially equivalent to Investments in subsidiaries and affiliates, but not treated as Investments in subsidiaries and affiliates under the applicable accounting principles) Investments in subsidiaries and affiliates Business investment equities (note3) Copyright (c) 2016 Tokio Marine Holdings, Inc. 45 Reconciliation of Business Unit Profits  Domestic Non-Life*1 (TMNF) FY2015 Results (billions of yen) FY2016 Projections YoY Change  International Insurance*1 (billions of yen) FY2015 Results FY2016 Projections Net income for accounting purposes 301.6 245.0 -56.6 Overseas subsidiaries Net income for accounting purposes Difference with EV (Life) Adjustment of non-controlling interests Difference of subsidiaries covered 111.5 -2.0 -2.3 9.5 15.2 131.8 120.7 Provision for catastrophe loss reserves *2 +68.3 +27.0 -41.3 Provision for price fluctuation reserves *2 +3.5 *3 +3.4 -0.1 Gains or losses on sales or valuation of ALM bonds and interest rate swaps Gains or losses on sales or valuation of fixed assets, business related equities and business investment equities (FY2015 Results : Gains or losses on sales or valuation of equity holdings and fixed assets) -21.1 +0.0 21.1 Other adjustments -76.4 -55.0 21.4 *4 Business Unit Profits 159.0 Intra-group dividends -155.7 -62.8 92.9 Other extraordinary gains/losses, valuation allowances, etc -0.2 +0.4 0.6 Business Unit Profits 120.0 158.0 38.0 *1: Each adjustment is on an after-tax basis *2: Reversals are subtracted *3: ALM: Asset Liability Management. Excluded as counter balance items against market value fluctuations of liabilities under ALM *4: Amortization of other intangible fixed assets, head office expenses, etc. Copyright (c) 2016 Tokio Marine Holdings, Inc. 46 Impact of FX rate change on the Group’s Financial Results  Main impact in the event of 1 yen appreciation*1 Impact on P/L 1. Decrease in profit from overseas subsidiaries converted into yen: 2. Change in reserves for foreign currency denominated outstanding claims and derivatives at TMNF: approx. ¥ - 1.0B*2 approx. ¥ + 1.0B*2 *1 Assuming that the FX rate for each currency changes by the same ratio as USD *2 After tax basis  Reference (applied FX rate) Applied FX rate (USD/JPY) FY2014 Results JPY 120.55 (end-Dec.2014) FY2015 Results JPY 120.61 (end-Dec.2015) FY2016 Projections Overseas subsidiaries JPY 112.68 (end-Mar.2016) TMNF JPY 120.17 (end-Mar.2015) JPY 112.68 (end-Mar.2016) Copyright (c) 2016 Tokio Marine Holdings, Inc. 47 Long-term Vision and the Mid-Term Business Plan "To Be a Good Company 2017" Long-term vision A global insurance group that delivers sustainable growth by providing safety and security to customers worldwide - Our timeless endeavor to be a Good Company Aiming for globally competitive-level earnings growth and capital efficiency ~Drive ROE towards double-digit sphere~ Mid-Term Business Plan “To Be a Good Company 2017” ~Evolve business structure to realize sustainable profit growth and higher ROE~ "Innovation and Execution 2014" ~Achieve an ROE exceeding our cost of capital~   Unlocking our potential Capitalizing on changes Pursuing growth opportunities Advancing our business platform Structural reform to profitable business Innovative changes for wellbalanced business portfolio     Profit recovery stage Copyright (c) 2016 Tokio Marine Holdings, Inc. Sustainable profit growth stage 48 Initiatives for “Sustainable Profit Growth”  Enhancement Unlocking our potential  Domestic insurance: Enhancing the integrated business model for life and non-life, strengthening claims-service capabilities, and further utilizing our risk consulting service International insurance: Enhancing organic growth Evolution Capitalizing on changes  Effectively forecasting and proactively meeting the emerging and evolving needs of the market and our customers Strengthening R&D to convert new risks into our business opportunities  Expansion Pursuing growth opportunities  Promoting disciplined business investment to capture growth opportunities globally Enhancing our diversified business portfolio based on risk appetite Advancing ERM and improving risk portfolio to sustainably and comprehensively enhance profit growth, capital efficiency, and financial soundness Strengthening our business platform to further reinforce our globalized business Developing a diverse workforce with a strong customer orientation to drive sustainable growth   Excellence Advancing our business platform   Copyright (c) 2016 Tokio Marine Holdings, Inc. 49 Framework of the Mid-Term Business Plan and Group Management Enhancing Enterprise Risk Management (ERM) to realize sustainable profit growth and higher capital efficiency even in a changing environment, while maintaining financial soundness Generate capital and cash Achieve sustainable profit growth and improve the risk portfolio in each business domain Achieve sustainable profit growth in each business domain  Domestic non-life : Profit growth as the core business of the Group  Domestic life : Profit growth while maintaining financial soundness as a growth driver of the Group  International insurance: Profit growth while globally diversifying risks as a growth driver of the Group Improve the risk portfolio  Reduce the risks associated with business-related equities  Strengthen control of natural catastrophe risks Efficient deployment of capital and cash Invest for growth  Invest in new businesses with high capital efficiency  Invest today to build foundations for our growth tomorrow Enterprise Risk Management (ERM) Return to shareholders  Increase dividends through profit growth  Achieve an appropriate level of capital via flexible repurchases of shares Improve capital efficiency by diversifying our business portfolio Maintain financial soundness Copyright (c) 2016 Tokio Marine Holdings, Inc. + Enhance ROE + Sustainable profit growth 50 Basic Information (Domestic Non-Life 1) - TMNF  Trend of net premiums written and combined ratio C/R(Private Insurance W/P Basis) Net Premiums Written (billions of yen)  Premium composition by Line (FY2015 net premiums written basis) 103.3% 99.4% 97.9% 97.2% 97.4% Marine 91.2% 3.1% 89.8% 89.2% 2,128.3 Others 12.7% CALI 13.3% P.A. 8.2% Fire 14.3% Auto 48.4% 90.9% 92.0% 93.1% 89.8% 1,892.7 1,928.0 1,912.1 1,813.4 1,736.0 1,742.7 1,783.0 1,869.6 1,966.3 2,036.7 2,135.0  Premium composition by sales channel (FY2015 managerial accounting basis) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015  Statistics of combined ratio and loss ratio (private insurance E/I Basis) FY2011 Net E/I C/R* E/I loss ratio Excluding natural catastrophes Expense ratio 103.8% 69.8% 61.3% 34.0% FY2012 99.6% 66.8% 62.8% 32.8% FY2013 97.2% 65.0% 60.1% 32.2% FY2014 90.6% 58.5% 56.9% 32.2% FY2015 92.7% 60.1% 56.0% 32.6% Financial institutions Others 3.5% 14.3% Auto repair shop 2016 8.8% Projections Auto dealership 20.0% Full-time agents 28.3% Corporate 25.1% FY2016 Projections 91.0% 58.3% 55.8% 32.7%  Market share* (FY2014 net premiums written basis) TMNF 25.6% NF 1.7% *: Net E/I C/R=E/I loss ratio + W/P expense ratio Copyright (c) 2016 Tokio Marine Holdings, Inc. *Japanese non-life market (excluding reinsurance companies) 51 Basic Information (Domestic Non-Life 2) - TMNF  Trend of underwriting results in auto insurance (W/P basis combined ratio) <Factors of profitability deterioration>  Increase in senior drivers with high accident frequency  Decrease in per-policy premiums owing to the progress of the average discount rate under the Grade Rating System Increasing trend in unit repair cost <Measures to improve profitability>  Efforts to decrease business expenses such as operational streamlining  Product and rate revisions Introduction of age-bracket rate plans Revision of the Grade Rating System Other measures to improve underwriting result  103.6% 102.9% 103.8% 102.6% 98.5% 94.0%    98.5% 94.9% 96.0% 91.5% 90.1% 89.9% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Projections  Trend of auto insurance policy renewal ratio, combined ratio and loss ratio FY2011 Policy renewal ratio Net E/I C/R* E/I L/R  Rate revisions and profitability improvements per FY (excluding revisions of the Grade Rating System in non-fleet auto insurance) (billions of yen) FY2012 95.3% 100.2% 69.4% FY2013 95.6% 95.7% 65.3% FY2014 95.6% 91.6% 61.1% FY2015 95.7% 91.4% 60.5% FY2016 Projections - 91.8% 60.9% 95.1% 102.9% 70.7% Revision Jan. 2012 Oct. 2012 Oct. 2013 Oct. 2014 Total FY13 7.0 8.0 4.0 19.0 FY14 FY15 FY16 Projections 1.0 26.0 3.0 30.0 4.0 15.0 19.0 3.0 3.0 *: Net E/I C/R =E/I loss ratio + W/P expense ratio Copyright (c) 2016 Tokio Marine Holdings, Inc. 52 Basic Information (Domestic Life) - TMNL  Growing "Medical & Cancer" market 【Composition of number of in-force policies】 (Individual insurance basis, total of Japanese life insurance market)  Growth rate of number of in-force policies at TMNL 【CAGR of in-force policies from FY2000 to FY2014】*1 *1: Total of individual insurance and individual annuities FY2000 20.2% TMNL*2 Average of Japanese life insurance market*3 +13.3% *2: After merger basis FY2014 35.5% 0 Others 50 Medical & Cancer 100 (unit: millions of policy) +2.9% *3 :Source Insurance Statistics (Seiho Toukeigo) (unit: ten thousands of policy) 150 530 500 470 438 349 283 256 317 378 405 Source: The Life Insurance Association of Japan 219 160 134 87 8 1996 187 106 23 1997 41 57 1998 1999 2000 Number of in-force 2015 2014 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 *4 policies at TMNL (total of individual insurance and individual annuities) 2001 *4:Total of TMNL and former FL Through development of product strategies focusing on “life insurance to protect one's living” in response to customer needs, TMNL achieved 5.3 million in-force policies in FY2015, significantly exceeding the market growth Copyright (c) 2016 Tokio Marine Holdings, Inc. 53 Asset Portfolio  Domestic Non-Life (TMNF)  With regard to "long-term insurance liabilities," we aim to maximize the value of surplus by controlling the interest rate risk based on the principle of strict ALM investments  With regard to "Absolute return investment and lending," we work toward diversification of investments with appropriate risk control, in order to maximize net asset value and increase investment income TMNF  Domestic Life (TMNL)  Excluding assets in separate accounts, most assets are assets for backing long-term insurance liabilities. We aim to maximize the value of surplus by controlling the interest rate risk based on the principle of strict ALM investments TMNL Total Total Assets ¥9.6T (as of Mar. 31, 2016) Assets ¥6.9T (as of Mar. 31, 2016) Assets backing long-term insurance liabilities Mainly yen-denominated fixed income assets Appropriately control the yendenominated interest rate risks of longterm insurance liabilities including deposit-type insurance, with yendenominated fixed income assets 28% Absolute return investment and lending 11% (Including short-term investments) Carefully select investment targets from domestic and foreign bonds, etc. and aim for profit contribution Assets backing long-term insurance liabilities Mainly yen-denominated fixed income assets Business-related equities 23% Appropriately control interest rate risks of life insurance liability Continue to reduce holdings Investments in subsidiaries and affiliates 21% 76% Others Assets in separate accounts 14% Former FL Real estate for own use and non-investment assets 17% Others Short-term investments, etc. 10% Copyright (c) 2016 Tokio Marine Holdings, Inc. 54 Basic Information (International Insurance 1) - Net Premiums Written  Net premiums written in international insurance business 1,800 (billions of yen) 1,610.0 1,600 Life 1,400 1,302.6 1,304.0 Reinsurance 1,200 1,074.5 1,000 North America 800 734.3 544.0 319.5 240.2 118.7 413.9 362.6 526.5 600 499.7 Europe*2 South & Central America Asia & Middle East*2 400 200 0 2004 USD/JPY*1 104.2 2005 118.1 2006 119.1 2007 114.1 2008 91.0 2009 92.1 2010 81.4 2011 77.7 2012 86.5 2013 105.3 2014 120.5 2015 120.6 2016 Projections 112.6 *1: FX rates are as of Dec. 31 of each year (FX rate for FY2016 Projections is as of Mar. 31, 2016) *2: Up to FY2015, Middle East is included in Europe. From FY2016, Middle East will be included in Asia Copyright (c) 2016 Tokio Marine Holdings, Inc. 55 Basic Information (International Insurance 2) - Strategic Expansion 2000 2007 2011 2015 Further Growth, Diversification and Capital Efficiency Further Expansion in High Growth Markets Indian Life Business Established Material Presence in Lloyd's (UK) and the US Developed Footholds in Non-Japanese Business (~2000) business development focused on Japanese clients P&C Emerging Markets Life Emerging Markets  Step by step expansion since 2000  International business grew substantially after 2007 due to transformational acquisitions of Kiln, Philadelphia, Delphi, and HCC 56 Copyright (c) 2016 Tokio Marine Holdings, Inc. MEMO Copyright (c) 2016 Tokio Marine Holdings, Inc. MEMO Copyright (c) 2016 Tokio Marine Holdings, Inc. Disclaimer 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. E-mail: URL : www.tokiomarinehd.com Tel : +81-3-3285-0350 201605261700 Tsuyoshi Nagano President 0:00:00.0 Tokio Marine Group Mid-Term Business Plan “To Be a Good Company 2017” FY2016 Business Plan May 2016 Tokio Marine Holdings, Inc. 0:01:27.3 Table of Contents Ⅰ Tokio Marine Group Business Strategy 1. Progress of the Mid-Term Business Plan 2. ERM & Shareholder Returns Ⅱ Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Reference ◆Abbreviations used in this material TMNF : Tokio Marine & Nichido Fire Insurance Co., Ltd. NF : Nisshin Fire & Marine Insurance Co., Ltd. TMNL : Tokio Marine & Nichido Life Insurance Co., Ltd. FL : Former Tokio Marine & Nichido Financial Life Insurance Co., Ltd. Copyright (c) 2016 Tokio Marine Holdings, Inc. 1 Ⅰ Tokio Marine Group Business Strategy Copyright (c) 2016 Tokio Marine Holdings, Inc. 2 Ⅰ. Tokio Marine Group Business Strategy 1. Progress of the Mid-Term Business Plan 2.ERM & Shareholder Returns Copyright (c) 2016 Tokio Marine Holdings, Inc. 3 0:01:57.6 1-1. Objectives of the Mid-Term Business Plan Mid-Term Business Plan “To Be a Good Company 2017” ~Evolve business structure to realize sustainable profit growth and higher ROE~ Group total FY2017 outlook Enhance capital efficiency Sustainable profit growth Enhance shareholder returns Adjusted ROE : Upper 9% range *1 Adjusted Net Income : approx. ¥400B *1 Steady growth of dividends in line with profit growth *1: Released in Nov. 2015 Based on market environment as of the end of Mar. 2015 Business Unit Profits Domestic Non-Life (TMNF) CAGR approx. +3% approx. (billions of yen) Domestic Life (TMNL) CAGR*3 approx. +8% (billions of yen) International Insurance CAGR approx. +8% approx. (billions of yen) + 120 125 2014 Normalized basis *2 2017 Plan 2014 1,037.3 Year-end MCEV Increase in MCEV *2: FX effects are excluded and natural catastrophe losses is normalized to an average annual level Copyright (c) 2016 Tokio Marine Holdings, Inc. 2017 Plan Approx. 1,300 100 *3: CAGR of MCEV 2014 Normalized basis *4 2017 Plan - *4: FX rate is as of the end of Mar. 2015, and natural catastrophe losses is normalized to an average annual level 4 0:02:49.6 1-2. Progress of the Mid-Term Business Plan Steady progress of the Mid-Term Business Plan   Achieved steady growth in FY2015, in line with the Plan Aim for further profit growth in FY2016 Projecting dividend increase backed by our solid earnings power   FY2015 annual dividends per share is planned to be ¥110, an increase by ¥15 YoY FY2016 annual dividends per share is projected to be ¥135, an increase by ¥25 YoY, due to the profit contribution by HCC, etc. Projected to increase by ¥36.1B YoY to ¥388B due to profit contribution by HCC and the progress of the growth strategies in the Mid-Term Business Plan, despite the reversal effect of temporary increase in gains on sales of securities in FY2015 2015 2016 Projections Net incurred losses relating to natural catastrophes (before tax, billions of yen) Domestic Non-Life International Insurance Total Sustainable profit growth Adjusted Net Income (billions of yen) +36.1 323.3 351.9 388.0 77.4 15.7 93.1 48.0 47.0 95.0 Net Income (financial accounting) 2014 247.4 2015 254.5 2016 Projections 265.0 Enhance capital efficiency Adjusted ROE 8.9% +1.4pt 9.1% 10.5% Projected to increase by 1.4pts YoY to 10.5% due to profit contribution by HCC as well as a decrease in adjusted net assets associated with the decline in stock price and the appreciation of the yen, etc. 2014 ROE (financial accounting) 7.9% 2015 7.2% 2016 Projections 7.5% Enhance shareholder returns Copyright (c) 2016 Tokio Marine Holdings, Inc. Dividends Per Share ( yen) +25 (planned) 110 (projections) 135 Projecting dividend increase for 5 consecutive years in line with profit growth Annual dividend is projected to be ¥135 per share (+ ¥25 YoY per share) 95 2014 2015 2016 Projections 5 0:04:41.0 1-3. Contribution by HCC Impact on adjusted ROE : +2.3pts Adjusted ROE Impact on adjusted EPS : +13% Adjusted EPS 10.5% 8.2% ¥452 ¥514 2016 Projections (excluding HCC) 2016 Projections (including HCC) 2016 Projections (excluding HCC) 2016 Projections (including HCC) Further diversifying risks globally, leading to a more stable group business foundation Insurance Premiums *1 International 35% 71% 26% 2016 Projections 65% (including HCC) Business Unit Profits *2 International 43% 8% HCC Domestic 12% HCC Domestic 29% 36% 64% 2016 Projections (excluding HCC) 2016 Projections (excluding HCC) 31% 2016 Projections (including HCC) 57% Copyright (c) 2016 Tokio Marine Holdings, Inc. *1: Net premiums written + life insurance premiums *2: Domestic businesses include domestic non-life, domestic life, and financial and general 6 0:06:11.7 1-4. Creating group synergies (1) Pursuing synergies by leveraging the Group's global footprint, high expertise of each group company, and its financial strengths, etc. Global Footprint • Wide network in both developed and emerging countries • Strong customer base Expertise of each group company • Strong underwriting technical expertise • Leading positions in the market and specific areas Synergy Creation Revenue <Examples> Overseas Japan  Providing specialty products of HCC and Philadelphia, etc. to Japanese corporate customers and cross selling through each company's sales network  Joint underwriting of insurance program by Tokio Marine Kiln, HCC and Tokio Marine Insurance Singapore coordinated by Tokio Marine Asia, at a large-scale commercial event in Asia  Joint product development by leveraging the knowhow at Tokio Marine Kiln Copyright (c) 2016 Tokio Marine Holdings, Inc.  Establishing global underwriting capability for D&O, etc. utilizing know-how at HCC  Support for Japanese corporations expanding businesses abroad by utilizing overseas experiences and know-how 7 0:07:18.2 1-5. Creating group synergies (2) • Investment Enhancing investment return through Delphi’s superior investment expertise Entrust the asset management of a portion of assets held by the Group companies* to Delphi with high investment expertise * Asset management entrusted to Delphi Philadelphia (from Jul. 2014), Tokio Millennium Re (from Jul. 2015), TMNF (from Jan. 2016), HCC (from Mar. 2016) • Capital Optimizing retention strategy and outward reinsurance on a Group basis Expand underwriting capacity of each Group company leveraging the Group’s risk diversification effect Reduce cost of outward reinsurance through intra-Group reinsurance, leveraging the Group’s financial strengths • • Cost Cost reduction through effective use of the Group resources and scale merit Cost reduction by joint purchase of IT system, etc. Optimize resources due to delisting of company purchased and utilizing shared services • Copyright (c) 2016 Tokio Marine Holdings, Inc. 8 0:08:20.4 1-6. Further integration and alignment in Group decision making Establish Group Chief Officer positions and committees as well as strengthen its functions to globalize and strengthen Group management system  Involvement of top management at overseas subsidiaries in solving Group management issues with their expertise  More focus by the Group CEO on Group management to maximize the Group’s comprehensive capability  Globalization and Strengthening Maximize the Group’s comprehensive capabilities Financial and General Group CEO Group Chief officer (by order of organization) More focus on Group management by the Group CEO Dept. in charge Domestic Non-life Domestic Life International Insurance CRDO Research and Development Research and Development Financial Planning Corporate Planning Global Retention Strategy Human Resources IT Planning Risk Management Committees Major management issues Risk management Asset management IT Retention strategies ,etc. CIO Investment • Enhancing group governance • Utilization of the Group management resources • Involvement in the Group management by overseas talent CFO Financial CRSO Retention Strategy CHRO Human Resources CITO Information Technology CRO Risk Copyright (c) 2016 Tokio Marine Holdings, Inc. Involvement of top management at overseas subsidiaries 9 0:10:07.7 Ⅰ. Tokio Marine Group Business Strategy 1. Progress of the Mid-Term Business Plan 2.ERM & Shareholder Returns Copyright (c) 2016 Tokio Marine Holdings, Inc. 10 0:10:16.9 2-1. Promoting Strong ERM (Controlling Risk and Capital) Maintain financial soundness Balance capital and risk to maintain AA credit ratings • • Advance natural catastrophe risk management Ensure our financial base can withstand catastrophic risks Enhance profitability × Sustainable profit growth and enhance capital efficiency • • • Invest in businesses which enhance capital efficiency Improve the profitability of existing businesses Continue to sell business-related equities Control risk and capital in accordance with risk appetite* * Insurance risk control : Pursue sustainable growth, risk diversification (stabilization), and improvement of capital efficiency through global business expansion Investment risk control : Secure liquid assets and stable profits mainly through ALM    Comfortable level of ESR calculated based on 99.95% VaR is 100~130% in light of financial soundness and profitability, and current ESR is sufficient for maintaining financial soundness Business continuity is confirmed even in the event of stress scenario When ESR becomes below 100%, confirm the necessity of action with consideration of the outlook of future profit accumulation and restricted capital Utilize capital buffer 130%*1 *1: Capital level which can maintain AA credit ratings withstanding once-in-a-decade risks • Invest in businesses for growth and take additional risks • Repurchase shares • Prepare for regulation changes and significant changes in business environment 106%*2 Comfortable Level as of the end of Mar. 2016 *2: 128% at 99.5% VaR Confirm the necessity of action Consider to recover capital level Consider the below with consideration of the outlook of future profit accumulation and restricted capital •Refrain from investment in businesses and additional risk-taking •Consider risk reduction measures Copyright (c) 2016 Tokio Marine Holdings, Inc. 100% ESR 99.95% VaR 11 0:12:06.9 2-2. Promoting Strong ERM (Disciplined Capital Management)   Utilize strict capital model which calculates risk capital based on 99.95%VaR (standard to maintain AA credit rating) and excludes restricted capital, while referring to the method in Solvency Ⅱin Europe, etc. Reflected recent negative interest rate in calculating risk capital  Economic Solvency Ratio (ESR) 111% Factors of changes in net asset value  Contribution of 2H FY15 adjusted net income  Decrease in unrealized gains of business-related equities  Decrease in MCEV associated with etc. interest rate decline  Impact of market changes on ESR and our measures 106%* * 128% at 99.5% VaR — Share price: Continue to sell business-related equities as the impact on ESR associated with the market value fluctuation is large Risk capital Net asset value trillion yen 2.8 3.1 trillion yen Factors of changes in risk capital  Sales of business-related equities  Decrease in risks of business-related equities due to decline in share price  Increase in interest rate risks due to etc. decline in interest rates Risk capital Net asset value — Interest rates: Impact on ESR increased due to the decline of interest rate. While preparing for the future rise in interest rate, control the impact of interest rate fluctuation through ALM — FX rates: Limited impact on ESR, as appreciation of the yen decreases net asset of overseas subsidiaries, whereas decreases FX risks. Policy is to basically limit FX risks trillion yen trillion yen 2.9 3.0 Mar. 31, 2016 106% 115% 96% 110% 103% Sept. 30, 2015 Mar. 31, 2016 Share Price +30% -30% Interest Rate +10bp ¥17,388 Nikkei Stock Average ¥16,758  Net Asset Value Net Asset Value = Consolidated net asset on financial accounting basis + Liability of capital nature (catastrophe loss reserves, price fluctuation reserves, etc.) (after-tax basis) goodwill, etc. -10bp Copyright (c) 2016 Tokio Marine Holdings, Inc. Planned distribution to shareholders Value of life + insurance policies in-force Restricted capital, etc. 12 0:13:16.1 2-3. Shareholder Returns  Our primary means of shareholder returns is dividends, which we plan to increase in line with profit growth Steady growth of dividends  We pursue steady growth of dividends, and payout ratio as a guide is above 35% of average adjusted net income - FY2015 : Projection for year-end dividends is revised upward by ¥5 to ¥57.5 per share, and annual dividends is planned to increase by ¥15 YoY to ¥110 - FY2016 : Annual dividends is projected to increase by ¥25 YoY to ¥135 per share (payout ratio* of 35%), an increase for five consecutive years *payout ratio to average adjusted net income + Flexible share repurchases  We intend to conduct share repurchases in a flexible manner based on a comprehensive assessment of market conditions, our capital levels, business investment opportunities, and other relevant factors ■ : Dividends per share ¥135 (Projections) ¥110 (Plan) ¥95 ¥70 ¥48 ¥36 ¥48 ¥50 ¥50 ¥50 ¥55 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Copyright (c) 2016 Tokio Marine Holdings, Inc. 13 0:15:11.7 2-4. Group Asset Management Group Asset Management Concept  With asset and liability management (ALM) at the core, we aim for steady profit growth while ensuring liquidity  Further strengthen investment capability by enhancing coordination among Group companies in Japan and overseas and promoting global investment diversification <Investment policy for each asset>  Domestic bond: Hold for controlling interest rate risks of yen-dominated insurance liabilities while closely watching the market trend  Foreign securities (mainly foreign bonds) : Increase the balance through investment in bonds in the U.S. and Europe by domestic subsidiaries as well as asset expansion at overseas subsidiaries Asset composition of TMHD (Consolidated) ※As of the end of Mar. 2016  Domestic equities (business-related equities): Continue to sell more than ¥100B per year from the perspective of enhancing capital efficiency Investment yield of the Group 2.1% 2.0% 1.0% 2.3% 2.2% Income return Impact from low interest rates in Japan is limited due to investment portfolio centered on long-term bonds and increased foreign assets with higher yield ■ Others ¥3.1T Mainly tangible fixed assets and intangible fixed assets, etc. ■ Cash and deposits ¥1.0T 4.7% 14.4% Total Assets 6.2% ■ Loans ¥0.8T ■ Monetary receivables bought ¥1.3T Mainly absolute return investment & lending by Domestic Non-Life (TMNF) and overseas subsidiaries 4.0% ■ Other securities ¥0.9T Mainly assets in separate accounts held by Domestic Life 4.4% 2013 2014 2015 ¥21.8T 20.8% 10.6% 34.9% Continuous reduction of business-related equities Sold total amount of ¥1.3T*1 since FY2004 Book value*2 has declined approx. by half ■ Foreign securities ¥4.5T Mainly local country bonds held by overseas subsidiaries mainly in the U.S. and Europe ■ Domestic bonds ¥7.6T Domestic government bonds (JGB): Approx. ¥6.8T Mainly bonds for the purpose of ALM by Domestic Life and Non-Life 100 93 2008/3E ■ Domestic equities ¥2.3T Mainly business-related equities held by Domestic Non-Life (TMNF) Copyright (c) 2016 Tokio Marine Holdings, Inc. 66 2012/3E 50 2016/3E 2004/3E *1: Market price at the time of sale *2: Figure at the end of FY2003 is set at index value of 100 14 Ⅱ Business Plan and Strategy by Domain Copyright (c) 2016 Tokio Marine Holdings, Inc. 15 0:17:13.2 Ⅱ. Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Copyright (c) 2016 Tokio Marine Holdings, Inc. 16 0:17:33.1 1-1. TMNF FY2016 Projections  Net premiums written is projected to expand due to steady execution of growth strategies, etc.  Business unit profits is projected to increase due to revenue growth as well as the reversal effect of an increase in natural catastrophes losses in FY2015, etc.  Net Premiums Written (billions of yen) CAGR +2.4% +0.3%  Projected to increase by 0.3% YoY due to premium growth in auto, etc., despite the reversal effect of an increase owing to policy 2,135.0 2,128.3 2,036.7 review by customers before the product revisions of fire insurance in FY2015  CAGR from FY2014 is +2.4%, steadily increasing in line with the Mid-Term Business Plan 2014 2015 2016 Projections  Business Unit Profits (billions of yen) +38.0 120.0 158.0  Projected to increase by ¥38.0B YoY due to the reversal effect of an increase in natural catastrophes losses in FY2015, etc.  Growth in FY2016 projection exceeds the target of +3% CAGR* in the Mid-Term Business Plan 113.7 2014 Copyright (c) 2016 Tokio Marine Holdings, Inc. *CAGR from FY2014 normalized basis (approx. ¥120B) in which effect of FX rate is excluded and natural catastrophes losses is normalized to an average annual level 2015 2016 Projections 17 0:19:23.6 1-2. TMNF Combined Ratio Combined ratio is stable, as a result of measures implemented to improve profitability  Combined Ratio (Private insurance: E/I basis*) 99.6% 97.5% 97.2% 94.4% 90.6% 91.4% 92.7% 90.8% ■ After normalizing natural catastrophes to an average annual basis approx. 92~93% 91.0% 2012 E/I loss ratio (Excluding natural catastrophes) (Natural catastrophes normalized to an average annual basis) Expense ratio 2013 65.0% 60.1% 62.2% 32.2% 2014 58.5% 56.9% 59.2% 32.2% 2015 60.1% 56.0% 58.2% 32.6% 2016 Projections 58.3% 55.8% - 32.7% 2017 Plan 66.8% 62.8% 64.7% 32.8% *: Loss ratio (private insurance E/I basis) + expense ratio (private insurance W/P basis)  Auto Loss Ratio (E/I basis) 69.4% 65.3% 61.1% 60.9% 60.5% 2012 Auto E/I C/R Auto E/I loss ratio Copyright (c) 2016 Tokio Marine Holdings, Inc. 2013 95.7% 65.3% 2014 91.6% 61.1% 2015 91.4% 60.5% 100.2% 69.4% 2016 Projections 91.8% 60.9% 18 0:20:41.7 1-3. TMNF - Measures to achieve sustainable growth (1) Strengthen customer contacts through productivity improvements to enhance the value delivered to customers to become "the best choice" • Further integration of the business model for life and non-life Expand Comprehensive Discount Super Insurance in Oct. 2016 (millions of policies) 1.92 ●TMNF Number of auto insurance policies 0.85 ●Number of automobiles owned nationwide 110 (managerial accounting basis, changes over the past one-year) (source: Automobile Inspection & Registration Information Association) for 2011/3E 2016/3E 109.9 • Expand product lines applied • Higher discount rates “Super Insurance” Number of in-force policies 95.7% Non-fleet auto Insurance 97.0% 105 103.4 Enhance cross-sell and renewal ratio Renewal Ratio* Super Insurance auto *FY2015 results • Advancing risk consulting services • Strengthen disaster countermeasures and provide BCP planning services based on earthquake disaster prevention plans • Identify risks and provide solutions for Japanese companies expanding businesses overseas 100 2011/3E 2012/3E 2013/3E 2014/3E 2015/3E 2016/2E Growth rate of number of autos* * 2011/3E is set at index value of 100 (billions of yen) 2,200 +4.5% • More edge to our claims-services Strengthen claims-service capability of employees and agents • Provide safety and security to all customers regardless of accident encounter • Further enhance our expertise and customer service capability • Establish system to support claims-service of employees and agents 2,000 Initiatives to strengthen capability for wide-area disasters Enhance Strengthen support + IT system mobility • Quick launch of nation-wide support team, enhancing support capability • Digitize accident report between agents and the company 1,800 1,600 1,400 1,200 1,000 2011 2012 2013 2014 2015 Enhance customer satisfaction Copyright (c) 2016 Tokio Marine Holdings, Inc. Net Premiums Written (all lines) 19 0:26:18.3 1-4. TMNF - Measures to achieve sustainable growth (2) Promoting R&D to capitalize on changes in business environment Providing new value such as preventive safety and loss reduction measures Drive Agent (for corporate clients) Automatic Accident Report Service (for individual customers) Responding to evolving risks New roles for insurance company • Study and research on legal responsibilities relating to accidents • Participation in demonstration tests on public roads for autonomous vehicles and development of specialized insurance package Auto • Comprehensive service using telematics technology • Automatic accident report service • Safety driving consultation • Accident prevention function which issues warnings when the vehicle is veering off lane Number of foreign tourists visiting Japan* 20 million • Automatic accident reporting process using beacon technology Target by the Government 2020: 40 million 2030: 60 million Inbound Insurance & Services • New travel insurance for foreign tourists after entering Japan, applicable through smart phones • Multi-lingual interpretation services for business organizations Increase in inbound tourists 15 10 5 0 2011 2013 2015 * source : Japan National Tourism Organization Utilization of technological innovation in the value chain of insurance business Technological innovation • Big data • AI Technological Innovation • Sales / Marketing • Pricing / Underwriting • Claims service 20 • Wearable technology Copyright (c) 2016 Tokio Marine Holdings, Inc. (Blank Page) Copyright (c) 2016 Tokio Marine Holdings, Inc. 21 0:28:47.4 Ⅱ. Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Copyright (c) 2016 Tokio Marine Holdings, Inc. 22 0:29:07.1 2-1. TMNL FY2016 Projections Aiming for steady growth maintaining financial soundness and profitability by promoting sales shift from saving-type products to protection-type products  New Policies Annualized Premiums (ANP) CAGR +12% +6% 114.1 84.9 119.7 100.4 112.7 107.1 (billions of yen)  New Policies ANP ̶ Projected to increase in line with the Mid-Term Business Plan by limiting the sales of saving-type products and continued launch of protection-type products under the low interest rate market in Japan Excluding long-term saving type products, protectiontype products is projected to increase by 6% YoY Accordingly, the product ratio of ANP other than longterm saving–type products is projected to increase by 11pts YoY to 95% ̶ ̶ 2014 2015 Total of new policies ANP Excluding long-term saving-type products (individual annuities and “whole life with long-term discount”) 2016 Projections  Individual Insurance・Number of New Policies (ten thousands of policies) CAGR +6%  Number of New Policies for Individual Insurance 60 53 58 ̶ Projected to increase by 3% YoY due to new cancer and medical insurance products released in FY2015 despite continuously limiting the sales of saving-type products 2014 Copyright (c) 2016 Tokio Marine Holdings, Inc. 2015 2016 Projections 23 0:30:56.4 2-2. TMNL - Change in MCEV and measures for low interest rates  Business Unit Profits (Increase in MCEV) (billions of yen) Changes in economic environment (decline in -38.3 interest rates, etc.) payment of shareholders’ dividends 1,037.3 ̶ MCEV is projected to increase by ¥39.0B in FY2016. Ensure profitability by promoting protection-type products while expecting effects of low interest rates 811.6 +39.0 Value of new business and release of discounted value of in-force business, etc. 2015 811.6*1 -187.4 115.6 2016 projections 850.6 39.0 39.0 -303.0 +115.6 Value of new business and release of discounted value of in-force business, etc. 850.6 ̶ Product revisions, etc. have been already made in response to the low interest rates (see below chart). Additional measures will be taken as needed 2014 Year-end MCEV MCEV Increase MCEV Increase *2 *3 Major product revisions, etc. responding to low interest rates FY2015 ■Product revision ・“Whole life with long-term discount” ・Individual annuity ・Single payment whole-life ・Single payment increasing whole-life FY2016 ■Suspension of sales ・Single payment whole-life ・Single payment increasing whole-life ・Single payment endowment (renewal) 1,037.3*1 *1: Figures for FY2014 and FY 2015 are after payment of shareholders’ dividends of the prior fiscal year *2: Excluding the effects of payment of shareholders’ dividends *3: Excluding the effects of payment of shareholders’ dividends and changes in economic environment (MCEV : Market Consistent Embedded Value) An index used to assess the value of life insurance business consistent with the value of financial instruments in the financial market Future economic condition is based on assumptions that the market conditions at the end of Mar. 2016 will continue ■Partial suspension of sales ・“Whole life with long-term discount” ・Whole-life *New sales of single payment endowments and single payment individual annuities were suspended before FY2014 Copyright (c) 2016 Tokio Marine Holdings, Inc. 24 0:33:21.1 2-3. TMNL - Promotion of “Life Insurance Revolution to Protect One’s Living” Expand and strengthen our unique product line-up which meets the diverse customer needs and serve as a source of stable profit Outpatient treatment (After discharge) Hospitalization / Surgery <Medical insurance> Inability to work (Home care) Nursing care requirement (Permanent disability) <Conventional life insurance> Death Coverage for conventionally untapped area  Extend coverage in response to the latest medical treatment  Proper pricing based on the latest medical data and the streamlining of business operations Introduced unique R (return) function FY2015 New Products In response to the latest medical treatment including chemotherapy Competitive pricing and flexibility in coverage No. of new policies of cancer insurance since its launch in Jul. 2015 : 110K (+205% YoY) Third-sector (Medical/Cancer) New policies ANP (billions of yen) 24.4 19.4 FY2015 Product revision Extended coverage in response to the latest medical treatment No. of new policies of medical insurance since its launch and revision in Nov. 2015 : 140K (+142% YoY) 2014 2015 Continue to launch unique products with coverage for untapped area Copyright (c) 2016 Tokio Marine Holdings, Inc. 25 0:35:55.7 2-4. TMNL - Strengthening growth potential Achieve growth in all four distribution channels by promoting multi-channel strategies FY2015 Results* +11% Initiatives in FY2016 Channel Composition (life insurance premiums on managerial accounting basis at the end of Mar. 2016 ) Life Partner approx. 10% Bancassurance approx. 10% Non-life Agents Life Professionals approx. 25% approx. 55% Non-life Agents 2014 2015  Develop products which promote integrated sales approach of life and non-life  Enhance sales ability by deploying dedicated salesperson for life  Differentiate from competitors leveraging the highly unique “Premium Series”  Support for establishment of sales system in response to the revision of Insurance Business Act  Strengthen business tie-up with non-life agents through full-time support by life partners at non-life insurance branches 2015 +14% Life Professionals 2014 2015 +15% Life Partners 2014  Recruiting sales agents with capability +21% Bancassurance 2014 2015  Sales promotion of protection-type products with installment plans *Life insurance premiums on managerial accounting basis at the end of Mar. 2016 excluding long-term saving-type products Further growth of the major four distribution channels with competitive products and sales ability Copyright (c) 2016 Tokio Marine Holdings, Inc. 26 0:38:14.7 Ⅱ. Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Copyright (c) 2016 Tokio Marine Holdings, Inc. 27 0:38:24.4 3-1. International Insurance - FY2016 Projections  Continue initiatives to achieve further profit growth by maintaining underwriting discipline even under the softening market  With contribution from HCC, promote further diversification of risks and expand profit growth as well as accelerate initiatives for creating synergies to generate additional values Net Premiums Written (billions of yen) +23% 1,610.0 (incl. HCC) 1,304.0 1,230.0 Business Unit Profits (billions of yen) +21% 159.0 (incl. HCC) 145.5 115.0 1,302.6 1,160.0 1,261.0 (excl. HCC) 131.8 100.0 115.0 (excl. HCC) 2014 Results Normalized basis* Applied FX rate Dec. 31, 2014 (USD/JPY) JPY 120.5 Applied FX rate (USD/JPY) 2015 Dec. 31, 2015 JPY 120.6 2016 Projections Mar. 31, 2016 JPY 112.6 Mar. 31, 2016 JPY 112.6 Results Normalized basis* 2014 Applied FX rate Dec. 31, 2014 (USD/JPY) JPY 120.5 2015 Dec. 31, 2015 JPY 120.6 2016 Projections Mar. 31, 2016 JPY 112.6 *Excluding yen conversion FX effects Mar. 31, 2016 Applied FX rate JPY 112.6 (USD/JPY) *Excluding yen conversion FX effects. Natural catastrophe losses is normalized to an average annual level  Projected to increase by 23% YoY mainly due to contribution from HCC  Projected to increase even on a normalized basis excluding contribution from HCC and the effect of the appreciation of the yen Composition of net premiums written (2016 Projections) South & Central America 7% Asia. Middle East 8% Reinsurance 8% Europe 9% 5% Copyright (c) 2016 Tokio Marine Holdings, Inc.  Projected to increase by 21% YoY mainly due to contribution from HCC  Projected to increase even on a normalized basis excluding contribution from HCC in FY2016 and normalizing natural catastrophe losses in FY2015 to an average annual level Life 6% HCC 22% Phila delphia 21% Delphi 14% North America 62%  With contribution from HCC, pursue further growth opportunities and accelerate the establishment of diversified business portfolio  Pursue balanced growth in both developed and emerging markets through “organic growth” and “strategic M&A” 28 Others 0:41:27.0 3-2. North America - Philadelphia Maintaining profit growth outperforming the market through underwriting discipline and action  Highly competitive business model focusing on niche markets  Maintaining C/R lower than market average through underwriting discipline  Maintaining high renewal ratio of in-force policies and continuing rate increases through strong franchise network Net Premiums Written 342.3 323.9 3,190 319.0 Normalized basis 302.0 3,020 Composition of Premiums Income (2015) ¥332.0bil ■ Human Services ■ Real Estate ■ Public Service ■ Mgmt & Prof. ■ Sports & Rec. ■ Other 30% 18% 13% 13% 9% 17% 2014 2015 2016 Projections Business Unit Profits 91% 91% 46.4 ¥40.0bil 38.0 Combined Ratio C/R 94% 110% US P&C market average Philadelphia 42.3 41.0 Normalized basis 100% 90% 2014 2015 2016 Projections 80% FY10 FY11 FY12 FY13 FY14 FY15  Projecting steady profit growth even under the softening market Copyright (c) 2016 Tokio Marine Holdings, Inc. 29 0:43:10.6 3-3. North America - Delphi Maintaining profit growth through profound investment expertise as well as further developing specific products and specific markets  Highly competitive business model focusing on market for employee benefits and excess workers compensation  Utilization of profound investment expertise  Maintaining high retention ratio and continuing rate increases in main products Net Premiums Written 241.3 236.6 225.0 221.0 Normalized basis 2,210 2,250 Composition of Premiums Income (2015) ¥232.0bil Non-life 38% ■ Disability ■ Group life ■ Others (Life) Life 62% 33% 22% 7% Life 62% ■ Excess W/C ■ Others (Non-life) 22% 16% Non-life 38% 95.2% 2014 2015 2016   Projections Business Unit Profits 96% 96% 44.4 40.2 39.0 Normalized basis 36.0 Combined Ratio C/R 98% 110% US P&C market average Delphi ¥42.0bil 100% 90% 2014 2015 2016 Projections 80%  Projecting profit growth mainly due to an increase in investment income Copyright (c) 2016 Tokio Marine Holdings, Inc. FY10 FY11 FY12 FY13 FY14 FY15 30 0:43:42.2 3-4. North America - HCC A world leading specialty insurer Aiming for further profit growth through synergy creation while maintaining high profitability  Diverse and highly profitable portfolio  Disciplined growth and best-in-class underwriting profitability  New business development and further profit expansion through synergy creation Net Premiums Written ¥349.0bil Composition of Premiums Income (2015) LOBs that are less dependent on the P&C market cycles (approx. 58%) Medical Stop-loss Agriculture US Surety Sports & Entertainment International Surety & Credit Other A&H US Credit 25% 16% 4% 3% 3% 4% 2% 2016 Projections Total 58% Business Unit Profits C/R 88% ¥44.0bil 100% 110% Combined Ratio US P&C market average HCC 90% 2016 Projections 80%  Further strengthen business platform of North America due to profit contribution from FY2016 Copyright (c) 2016 Tokio Marine Holdings, Inc. FY10 FY11 FY12 FY13 FY14 FY15 31 0:44:39.6 3-5. Europe / Reinsurance  Expanding profit mainly in specialty business in the Lloyd’s market  Maintaining underwriting discipline as continuous softening of the European market is expected Europe  Under the softening market, continue maintaining stable profit by promoting geographical and product line diversification  Expanding source of profit through solution offering to meet customer needs Reinsurance Net Premiums Written Normalized basis 152.4 148.4 134.0 ¥147.0bil Net Premiums Written Normalized basis 188.3 149.5 137.0 175.0 ¥134.0bil 129.0 2014 2015 96% 2016 Projections   C/R 94% 2014 2015 2016 Projections C/R 97% Business Unit Profits Normalized basis 94% 19.7 10.0 Business Unit Profits Normalized basis 93% 93% ¥9.0bil 8.0 1.0 9.6 1.0 10.6 ¥9.0bil 2.0 2014 2015 2016 Projections 2014 2015 2016 Projections  Projected to increase mainly due to the reversal effect of large losses such as Tianjin port explosion and foreign exchange losses in FY2015  Projected to increase mainly due to the reversal effect of large losses in FY2015 Tokio Marine Kiln Premium composition of Lloyd’s business Others Aviation 4% 6% 10% By line 2015 110% Combined Ratio Lloyd’s market average 100% Change in portfolio (Earned premiums basis) non-natcat natcat natcat approx. approx. Combined Ratio 130% 110% 90% 70% 50% 30% FY07 FY09 * Peer average* TMR TMK (Lloyd’s business) non-natcat 40% natcat A&H Property & Liability 54% Re 9% insurance 17% Marine 80% 90% FY11 FY13 FY15 2007 80% 2011 2015 FY10 FY11 FY12 FY13 FY14 FY15 Copyright (c) 2016 Tokio Marine Holdings, Inc. * Average of 12 peer companies as below: (Renaissance Re, Validus, Ace(R/I only), Axis(R/I only), Montpelier Re, Markel, AWAC, Arch, Endurance, Aspen, Everest Re, Partner Re) 32 0:46:26.8 3-6. Emerging Countries South & Continue profit growth by providing products Central and services which meet the needs of customers through high quality operation America Net Premiums Written 132.1 Normalized basis 91.0 Asia Achieve growth in the retail market by expanding distribution channels and Middle rolling-out the best-practice within the Group East Life Non-life Normalized Net Premiums Written basis 118.7 105.0 102.7 105.0 ¥117.0bil 115.7 112.0 ¥124.0bil 117.9 105.0 82.9 81.0 ¥94.0bil 2014 2015 2016 Projections 2014 2015 2016 Projections Normalized basis 2014 2015 2016 Projections Business Unit Profits 100% 100% C/R 100% Business Unit Profits 91% 91% 14.8 13.0 C/R 95% 5.8 Normalized basis 3.0 2014 5.3 5.0 17.1 ¥4.0bil 14.0 9.4 ¥10.0bil 8.0 0.6 2015 2016 Projections 2014 2015 2016 Projections 2014 ¥2.0bil 1.0 2015 2016 Projections  Continue to aim for solid profit growth, although projected to decrease mainly due to the effect of change in tax law in Brazil  Maintaining high growth outperforming market and profitability in auto insurance as the main business  Projected to decrease due to the reversal effect of temporary increase factors in FY2015  Projected to increase due to the reversal effect of a decrease in unrealized gains associated with the decline in stock prices in FY2015, etc. Brazil (Local currency basis premium) Market CAGR +10% BRL(millions) 3,000 2,000 1,000 FY12 FY13 FY14 FY15 2013-2015 Major Asian Countries (Non-life gross premium CAGR) Tokio Marine CAGR +21% Copyright (c) 2016 Tokio Marine Holdings, Inc. 33 3-7. International Insurance - FY2016 Projections by Region Net Premiuns Written (billions of yen) YoY Change 328.1 -10.3 -9.3 349.0 -1.4 14.2 8.2 -54.3 294.8 11.0 % 49% -3% -4% -1% 14% 7% -29% 24% 13% (Ref.) (Excluding *3 FX effects) Business Units Profits (billions of yen) YoY Change 33.3 -6.4 -2.4 44.0 0.9 -1.3 -4.8 -1.6 26.6 1.3 % 35% -14% -5% 11% -25% -33% -16% 20% 231% (Ref.) (Excluding *3 FX effects) C/R 2014 2015 2016 Projections 2014 2015 2016 Projections 2014 2015 2016 Projections North America (incl. HCC)   Philadelphia   Delphi   HCC Europe*4 South & Central Asia & Middle East*4 Reinsurnace Total Non-Life* Life 1 631.2 323.9 236.6 152.4 132.1 118.7 149.5 1,184.7 117.9 665.8 342.3 241.3 148.4 102.7 115.7 188.3 1,221.1 82.9 994.0 332.0 232.0 349.0 147.0 117.0 124.0 134.0 1,516.0 94.0 60% 4% 3% 9% 11% 11% -24% 32% 15% 87.2 42.3 40.2 19.7 5.8 17.1 9.6 138.6 9.4 95.6 46.4 44.4 8.0 5.3 14.8 10.6 134.3 0.6 129.0 40.0 42.0 44.0 9.0 4.0 10.0 9.0 161.0 2.0 44% -8% 1% 24% -27% -30% -10% 28% 187% 94% 91% 96% 94% 100% 91% 93% 94% - 94% 91% 96% 96% 100% 91% 93% 95% - 93% 94% 98% 88% 94% 100% 95% 97% 94% - Total*2 1,302.6 1,304.0 1,610.0 305.9 23% 31% 145.5 131.8 159.0 27.1 21% 29% 94% 95% 94% *1: Total Non-Life figures include some life insurance figures of composite overseas subsidiaries *2: After adjustment of head office expenses *3: Local currency basis *4: Before, Middle East was included in Europe, but from FY2016, Middle East will be included in Asia (same for FY2014 and FY2015 in the above chart) 2014 Applied FX rate As of endDec. 2014 2015 As of endDec. 2015 2016 Projections As of endMar. 2016 Change -7% -9% 3% 3% (USD / JPY) (GBP / JPY) (Brazilian Real / JPY) Y) (Malaysian Ringgit / JPY ¥120.5 ¥187.0 ¥45.3 ¥34.4 ¥120.6 ¥178.7 ¥30.4 ¥28.0 ¥112.6 ¥161.9 ¥31.3 ¥28.8 Copyright (c) 2016 Tokio Marine Holdings, Inc. 34 (Blank Page) Copyright (c) 2016 Tokio Marine Holdings, Inc. 35 Reference a ・Tokio Marine Holdings Key Statistics ・Return to Shareholders ・FY2015 Results Overview ・FY2016 Projections Overview ・Definition and Reconciliation of Adjusted Net Income, Adjusted Net Assets and Adjusted ROE ・Definition and Reconciliation of Business Unit Profits ・Impact of FX rate change on the Group’s Financial Results ・Long-term Vision and Mid-Term Business Plan "To Be a Good Company 2017" b c ・Initiatives for “Sustainable Profit Growth” ・Framework of the Mid-Term Business Plan and Group Management ・Basic Information (Domestic Non-Life) - TMNF ・Basic Information (Domestic Life) - TMNL ・Asset Portfolio ・Basic Information (International Insurance) d Copyright (c) 2016 Tokio Marine Holdings, Inc. 36 Tokio Marine Holdings Key Statistics FY2006 Net income (billions of yen) Shareholders' equity after tax (billions of yen) EPS (yen) BPS (yen) ROE PBR Adjusted net income (billions of yen) Adjusted net assets (billions of yen) FY2007 108.7 2,563.5 133 3,195 3.6% 1.15 99.4 15.1 29.7 -1.0 60 FY2008 23.1 1,627.8 29 2,067 1.1% 1.16 5.1 -57.2 20.8 -21.1 50 FY2009 128.4 2,169.0 163 2,754 6.8% 0.96 46.2 52.0 76.5 -9.4 95 FY2010 71.9 1,886.5 92 2,460 3.5% 0.90 20.4 27.5 24.8 -0.7 187 FY2011 6.0 1,839.6 7 2,399 0.3% 0.95 30.7 2,301.6 40 3,001 1.3% 0.76 -26.1 15.9 -11.9 2.6 206 FY2012 129.5 2,340.7 168 3,052 6.2% 0.87 163.1 2,746.5 212 3,580 6.5% 0.74 48.3 110.3 69.2 -18.7 115 FY2013 184.1 2,712.7 239 3,536 7.3% 0.88 243.7 3,172.5 317 4,135 8.2% 0.75 34.0 104.5 136.9 2.5 109 FY2014 247.4 3,578.7 323 4,742 7.9% 0.96 323.3 4,103.4 423 5,437 8.9% 0.83 122.5 139.8 145.5 4.0 112 FY2015 254.5 3,484.7 337 4,617 7.2% 0.82 351.9 3,599.3 466 4,769 9.1% 0.80 126.0 -188.1 131.8 7.3 122 *1 93.0 3,398.4 112 4,128 2.8% 1.06 89.0 48.2 28.6 3.8 45 Financial accounting basis KPI Adjusted EPS (yen) Adjusted BPS (yen) Adjusted ROE Adjusted PBR Domestic non-life insurance business Business Unit Profits*2 (billions of yen) Domestic life insurance business International insurance business Financial and general businesses Sales of business-related equity holdings (billons of yen) 2007/3E Adjusted number of issued and outstanding shares (thousands of shares) Market capitalization (billions of yen) Share price (yen) Percentage change (Reference) TOPIX Percentage change 2008/3E 802,231 2,960.6 3,680 - 15.6% 1,212.96 - 29.2% 2009/3E 787,562 1,926.8 2,395 - 34.9% 773.66 - 36.2% 2010/3E 787,605 2,118.3 2,633 9.9% 978.81 26.5% 2011/3E 766,820 1,789.3 2,224 - 15.5% 869.38 - 11.2% 2012/3E 766,928 1,827.1 2,271 2.1% 854.35 - 1.7% 2013/3E 767,034 2,039.2 2,650 16.7% 1,034.71 21.1% 2014/3E 767,218 2,383.9 3,098 16.9% 1,202.89 16.3% 2015/3E 754,599 3,438.0 4,538.5 46.5% 1,543.11 28.3% 2015/9E 754,685 2,878.6 3,800 - 16.3% 1,347.20 - 12.7% *3 823,337 3,594.9 *4 4,360 - 6.4% 1,713.61 - 0.8% *1 *2 *3 *4 FY2015: the figure is "Net income attributable to owners of the parent" FY2006-2014 figures are "Adjusted earnings" (Former KPI), domestic life insurance business are presented on an TEV (Traditional Embedded Value) basis All figures exclude the number of treasury shares held from the total number of the shares issued and are shown on a basis after a share-split 1-500 in Sep. 2006 All figures are shown on a basis after a share-split 1-500 in Sep. 2006 Copyright (c) 2016 Tokio Marine Holdings, Inc. 37 Return to Shareholders FY2006 Dividends per share Dividends total 36yen 29.8bn yen FY2007 48yen 38.7bn yen FY2008 48yen 38.0bn yen FY2009 50yen 39.4bn yen FY2010 50yen 38.6bn yen FY2011 50yen 38.3bn yen FY2012 55yen 42.2bn yen FY2013 70yen 53.7bn yen FY2014 FY2015 FY2016 Projections 135yen 101.8bn yen 95yen 110yen (plan) 72.2bn yen 83.0bn yen Share repurchases*1 Total distributions to shareholders 85.0bn yen 90.0bn yen 50.0bn yen 88.0bn yen 39.4bn yen 50.0bn yen 88.6bn yen 38.3bn yen 42.2bn yen - 50.0bn yen 83.0bn yen TBD TBD 114.8bn yen 128.7bn yen 53.7bn yen 122.2bn yen Adjusted net income Average adjusted net income Payout ratio*2 30.7bn yen 163.1bn yen 243.7bn yen 323.3bn yen 351.9bn yen 220.0bn yen 38% 388.0bn yen 290.0bn yen 35% Adjusted net income was adopted as a new KPI in FY2015. (Figures from FY2011 to FY2014 are adjusted net income.) Key Statistics from FY2006 to FY2014 are shown in Reference 2 table. <Refernece1 : Financial accounting basis> Net income (Consolidated) Payout ratio <Refernece2 : Former KPI> Adjusted earnings Adjusted earnings (excluding EV) Average adjusted earnings (excluding EV)*3 Payout ratio*2 169.7bn yen 143.2bn yen - 52.5bn yen 165.4bn yen 121.5bn yen 128.1bn yen 90.0bn yen 100.0bn yen 33% 39% 4.7bn yen 113.4bn yen 80.0bn yen 48% 85.0bn yen 46% 72.0bn yen - 19.5bn yen 209.1bn yen 278.1bn yen 412.0bn yen 44.5bn yen - 35.4bn yen 80.0bn yen 48% 80.0bn yen 48% 98.8bn yen 173.6bn yen 272.2bn yen 85.0bn yen 110.0bn yen 155.0bn yen 50% 49% 47% 93.0bn yen 108.7bn yen 32% 36% 23.1bn yen 128.4bn yen 165% 31% 71.9bn yen 54% 6.0bn yen 129.5bn yen 184.1bn yen 247.4bn yen 639% 33% 29% 29% 254.5bn yen 33% 265.0bn yen 38% *1: On a repurchase year basis. FY2006 figure excludes JPY57.8B of stock exchange between Nisshin Fire *2: Until FY2014: payout ratio to average adjusted earnings (exluding EV) From FY2015: payout ratio to average adjusted net income *3: Excludes effects from the Great East Japan Earthquake and Thai Flood Copyright (c) 2016 Tokio Marine Holdings, Inc. 38 FY2015 Results Overview (Consolidated)  Net Premiums Written (billions of yen, except for %) • FY2014 ■Ordinary income (TMHD Consolidated) Net premiums written (TMHD Consolidated) Life insurance premiums (TMHD Consolidated) FY2015 4,579.0 3,265.5 471.6 385.8 377.2 9.7 29.0 145.7 5.7 - 181.5 254.5 301.6 6.1 14.7 111.5 3.4 - 183.0 YoY Change % Increased both in domestic non-life business and overseas subsidiaries 4,327.9 3,127.6 220.4 358.1 264.0 17.6 251.0 137.9 251.2 27.6 113.1 - 7.9 8.3 - 9.4 - 0.4 - 75.9 7.1 116.2 - 6.4 - 14.0 - 13.0 0.2 - 75.8 + 5.8% + 4.4% + 114.0% + 7.7% + 42.9% - 45.0% + 40.3% - 6.1% - 8.0%  Life Insurance Premiums • Increased due to a steady increase in in-force policies and a decrease in surrender of variable annuities in domestic life business, etc. ■Ordinary profit (TMHD Consolidated) Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.) *1 20.6 155.1 6.2 - 105.6 247.4 185.3 12.5 28.8 124.5 3.2 - 107.1  Ordinary Profit • Domestic Non-Life Underwriting profit decreased despite an increase in net premiums earned due to (i) increase in net incurred losses relating to natural catastrophes, (ii) higher large losses and (iii) increase in net provision for catastrophe loss reserves, etc.. Net investment income and other increased due to an increase in dividends from subsidiaries and an improvement of gains/losses on derivatives, in addition to an increase in gains on sales of securities, etc. ■Net income attributable to owners of the parent*2 Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life*1 Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.) *1 *2 + 2.9% + 62.8% - 51.2% - 48.9% - 10.4% + 6.8% • Domestic Life Increased due to the reversal of contingency reserves associated with surrender of variable annuities, etc. Since Tokio Marine & Nichido Life (TMNL) and Tokio Marine & Nichido Financial Life (FL) merged on October 1st 2014, FY2014 results for TMNL are the sum of the results of the two companies. "Net income attributable to owners of the parent" shows figures for former "Net income" • Overseas Subsidiaries Decreased due to large losses and foreign exchange losses on a local accounting basis, etc. in addition to the appreciation of the yen against emerging market currencies despite a decrease in net incurred losses relating to natural catastrophes 【KPI for the Group Total】 ■Adjusted net income 323.3 351.9 28.6 + 8.8%  Net Income attributable to owners of the parent*2 • Increased due to the factors above  Adjusted Net Income • Copyright (c) 2016 Tokio Marine Holdings, Inc. Adjusted net income which excludes the effect of an increase in net provision for catastrophe loss reserves, etc., increased 39 FY2015 Results Overview (Business Unit Profits) (billions of yen) Business Domain FY2014 Results FY2015 Results YoY Change 3.5 6.3 -3.4 0.7 -355.5 -357.1 -13.7 8.3 -11.4 -0.5 -2.5 1.0 -4.3 -8.8  Domestic Non-Life TMNF: Increased by ¥6.3B YoY to ¥120.0B  Improvement of gains/losses on derivatives Increase in net incurred losses relating to natural catastrophes and large losses  Domestic Non-Life TMNF NF Other Domestic Life*1・2 TMNL International Insurance North America Europe (incl. Middle East) South & Central America Asia Reinsurance International Non-Life International Life Financial & General *3 122.5 113.7 12.2 -3.4 167.4 169.7 145.5 87.2 19.6 5.8 17.3 9.6 138.6 9.4 126.0 120.0 8.8 -2.7 -188.1 -187.4 131.8 95.6 8.1 5.3 14.7 10.6 134.3 0.6  Domestic Life TMNL : Decreased by ¥357.1B YoY to ¥187.4B *   Effects of changes in economic conditions including a decline in interest rates Reversal effect of the decrease in corporate tax rate in FY2014, etc. * Increase in MCEV excluding the effects of changes in economic conditions such as decline in interest rates is ¥115.6B  International Insurance Decreased by ¥13.7B YoY to ¥131.8B    Decrease in net incurred losses relating to natural catastrophes Increase in large losses Increase in foreign exchange losses on local accounting basis 4.0 7.3 3.3 *1: Excluding capital transactions *2: Regarding Domestic Life, because MCEV was adopted, which is effective from FY2015, FY2014 figure is also described based on MCEV *3: International Non-Life figures include some life insurance figures of composite overseas subsidiaries Copyright (c) 2016 Tokio Marine Holdings, Inc. 40 FY2016 Projections Overview (Consolidated)  Net Premiums Written • (billions of yen, except for %) ■Ordinary income (TMHD Consolidated) Net premiums written (TMHD Consolidated) Life insurance premiums (TMHD Consolidated) FY2015 Results 4,579.0 3,265.5 471.6 385.8 377.2 9.7 29.0 145.7 5.7 - 181.5 254.5 301.6 6.1 14.7 111.5 3.4 - 183.0 FY2016 Projections 3,460.0 800.0 380.0 309.0 6.4 22.9 164.1 4.3 - 126.7 265.0 245.0 4.3 15.6 120.7 3.0 - 123.6 YoY Change % Increase mainly due to HCC consolidation despite the appreciation of the yen Increase due to an increase in in-force policies and a decrease in surrender of variable annuities in domestic life business as well as HCC consolidation, etc.  Life Insurance Premiums • 194.4 328.3 - 5.8 - 68.2 - 3.3 - 6.1 18.3 - 1.4 54.8 10.4 - 56.6 - 1.8 0.8 9.1 - 0.4 59.4 + 6.0% + 69.6% - 1.5% - 18.1% - 34.1% - 21.1% + 12.6% - 24.8% ■Ordinary profit (TMHD Consolidated) Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.)  Ordinary Profit • Domestic Non-Life Underwriting profit is projected to increase due to (i) assuming an average level of net incurred losses relating to natural catastrophes and (ii) a lowering of the provision rate for catastrophe loss reserves in auto group at TMNF, etc.. Net investment income and other is projected to decrease due to a decrease in dividends from subsidiaries and the reversal effects of gains on derivatives in FY2015, etc. ■Net income attributable to owners of the parent Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.) 【KPI for the Group Total】 + 4.1% - 18.8% - 30.0% + 5.7% + 8.2% - 14.2% • Domestic Life Decrease due to a decrease in amount taken down from contingency reserves associated with maturities of policies at former FL, etc. • Overseas Subsidiaries + 10.3% ■Adjusted net income 351.9 388.0 36.1 Increase due to HCC consolidation and the reversal effect of large losses in FY2015, etc. despite the appreciation of the yen and assuming an average level of natural catastrophe losses which were relatively low in FY2015  Net Income attributable to owners of the parent • Increase due to the factors above and the reversal effect of reduction of deferred tax assets owing to the decrease in corporate tax rate in FY2015, etc. Adjusted net income which excludes the effect of an increase in amortization of goodwill associated with HCC consolidation, etc., 41 is projected to increase  Adjusted Net Income • Copyright (c) 2016 Tokio Marine Holdings, Inc. FY2016 Projections Overview (Business Unit Profits) (billions of yen) Business Domain FY2015 Results FY2016 Projections YoY Change 39.0 38.0 -1.8 1.7 227.1 226.4 27.1 33.3 0.9 -1.3 -4.8 -1.6 26.6 1.3  Domestic Non-Life TMNF: Projected to increase by ¥38B YoY to ¥158B  Decrease in net incurred losses relating to natural catastrophes and large losses  Reversal effect of an improvement of gains/losses on derivatives in FY2015 Domestic Non-Life TMNF NF Other Domestic Life*1 TMNL International Insurance North America Europe South & Central America Asia (incl. Middle East) Reinsurance International Non-Life International Life Financial & General *2 126.0 120.0 8.8 -2.7 -188.1 -187.4 131.8 95.6 8.0 5.3 14.8 10.6 134.3 0.6 165.0 158.0 7.0 -1.0 39.0 39.0 159.0 129.0 9.0 4.0 10.0 9.0 161.0 2.0  Domestic Life TMNL : Projected to increase by ¥226.4B YoY to ¥39B  Reversal effect of changes in economic conditions including a decline in interest rates in FY2015  Steady increase in new policies  International Insurance Projected to increase by ¥27.1B YoY to ¥159B  HCC consolidation  Reversal effect of large losses and foreign exchange losses in FY2015  Assuming an average level of natural catastrophe losses which were relatively low in FY2015 7.3 4.0 -3.3 *1: Excluding capital transactions *2: International Non-Life figures include some life insurance figures of composite overseas subsidiaries Copyright (c) 2016 Tokio Marine Holdings, Inc. 42 Definition of Adjusted Net Income (New from FY2016) / Adjusted Net Assets / Adjusted ROE Definition of Adjusted Net Income / Adjusted Net Assets / Adjusted ROE  Adjusted Net Income*1 Adjusted Net Income = Net income (consolidated)*2 Provision for + catastrophe loss reserves*3 + Provision for contingency reserves*3 + Provision for price fluctuation reserves*3 Gains or losses on sales or valuation of ALM*4 bonds and interest rate swaps Gains or losses on sales or valuation of fixed assets and business investment equities + Amortization of goodwill and other intangible fixed assets Other extraordinary gains/losses, valuation allowances, etc  Adjusted Net Assets*1(average balance basis) Adjusted Net Assets = Net assets (consolidated) + Catastrophe loss reserves + Contingency reserves + Price fluctuation reserves Goodwill and other intangible fixed assets  Adjusted ROE Adjusted ROE = Adjusted Net Income ÷ Adjusted Net Assets *1: Each adjustment is on an after-tax basis *2: Net income is attributable to owners of the parent *3: Reversals are subtracted *4: ALM: Asset Liability Management. Excluded as counter balance items against market value fluctuations of liabilities under ALM Difference Between New Definition and Former Definition “Gains or losses on sales or valuation of business investment equities” is added to the adjusting items for Adjusted Net Income (See bold underline text portion). <Treatment of gains or losses on sales or valuation for the types of equities> Adjusted Net Income (new) Adjusted Net Income (former) (note1) Equities held for the purpose of gains derived from the increase in the market Absolute return investments (note1) Included Included value and/or the dividend income (note2) Domestic equities and other securities held by domestic subsidiaries for the main purpose of strengthening business relationships (note3) Equities and other securities other than Absolute return investments, Business-related equities and Investments in subsidiaries and affiliates (such as equities and other securities substantially equivalent to Investments in subsidiaries and affiliates, but not treated as Investments in subsidiaries and affiliates under the applicable accounting principles) Business-related equities (note2) Included Excluded (excluded as “other extraordinary gains/ losses) Excluded Included Excluded (excluded as “other extraordinary gains/ losses) Included Investments in subsidiaries and affiliates Business investment equities (note3) Copyright (c) 2016 Tokio Marine Holdings, Inc. 43 Reconciliation of Adjusted Net Income / Adjusted Net Assets (billions of yen)  Adjusted Net Income*1 FY2015 Results FY2016 Projections YoY Change  Adjusted Net Assets FY2015 Results FY2016 Projections YoY Change  Adjusted ROE FY2015 Results FY2016 Projections YoY Change Net income attributable to owners of the parent (consolidated)*2 *3 254.5 265.0 10.4 Net assets(consolidated) 3,484.7 3,605.0 120.3 Net income(consolidated) 254.5 265.0 10.4 Provision for catastrophe loss reserves +68.9 +31.0 -37.9 Catastrophe loss reserves +769.1 +806.0 36.9 Net assets(consolidated)*5 FInancial acccounting basis ROE *5 average balance basis 3,531.7 3,545.0 13.3 Provision for contingency reserves *3 -0.2 - 0.2 Contingency reserves +34.2 +34.0 -0.2 7.2% 7.5% + 0.3pt Provision for price fluctuation reserves *3 +3.7 *4 +3.0 -0.7 Price fluctuation reserves +62.8 +67.0 4.2 Gains or losses on sales or valuation of ALM bonds and interest rate swaps -22.6 - 22.6 Goodwill and other intangible fixed assets -751.5 -752.0 -0.5 FY2015 Results FY2016 Projections YoY Change Gains or losses on sales or valuation of fixed assets and business investment equities (FY2015 Results : Gains or losses on sales or valuation of fixed assets) +1.8 -4.0 -5.8 Adjusted Net Assets 3,599.3 3,761.0 161.7 Adjusted Net Income 351.9 388.0 36.1 Amortization of goodwill and other intangible fixed assets Other extraordinary gains/losses, valuation allowances, etc. +34.3 +93.0 58.7 Adjusted Net Assets*5 3,851.4 3,680.0 -171.4 +11.3 - -11.3 Adjusted ROE *5 average balance basis 9.1% 10.5% + 1.4pt Adjusted Net Income *1 *2 *3 *4 351.9 388.0 36.1 Each adjustment is on an after-tax basis "Net income attributable to owners of the parent" shows figures for former "Net income" Reversals are subtracted ALM: Asset Liability management Excluded as counter balance items against market value fluctuations of liabilities under ALM Copyright (c) 2016 Tokio Marine Holdings, Inc. 44 Definition of Business Unit Profits (New from FY2016) Definition of Business Unit Profits  Non-life insurance business Business Unit Profits*1 = Net income Provision for + catastrophe loss reserves*2 + Provision for price fluctuation reserves*2 Gains or losses on sales or valuation of ALM*3 bonds and interest rate swaps Gains or losses on sales or valuation of fixed assets, business related equities and business investment equities *1: Each adjustment is on an after-tax basis Other extraordinary gains/losses, valuation allowances, etc. -  Life insurance business*4 Business Unit Profits*1 Increase in EV*5 = during the current fiscal year + Capital transactions such as capital increase *2: Reversals are subtracted *3: ALM: Asset Liability Management. Excluded as counter balance items against market value fluctuations of liabilities under ALM *4: For life insurance companies in certain regions, Business Unit Profits is calculated by using the definition in Other businesses (head office expenses, etc. are deducted from profits) *5: EV: Embedded Value. An index that shows the net present value of profits to be gained from policies in-force is added to the net asset value  Other businesses Net income determined in accordance with financial accounting principles Difference Between New Definition and Former Definition <Change in the definition of Business Unit Profits for non-life insurance business> Among the adjusting items for Business Unit Profits, “Gains or losses on sales or valuation of equity holdings” is replaced by “Gains or losses on sales or valuation of business-related equities and business investment equities.” (See bold underline text portion). <Treatment of gains or losses on sales or valuation for the types of equities> Business Unit Profits (new) Business Unit Profits (former) Absolute return investments (note1) Included Excluded (note1) Equities held for the purpose of gains derived from the increase in the market value and/or the dividend income (note2) Domestic equities and other securities held by domestic subsidiaries for the Business-related equities (note2) Excluded Excluded (excluded as “other extraordinary gains/ losses) Excluded Excluded Excluded (excluded as “other extraordinary gains/ losses) Excluded main purpose of strengthening business relationships (note3) Equities and other securities other than Absolute return investments, Business-related equities and Investments in subsidiaries and affiliates (such as equities and other securities substantially equivalent to Investments in subsidiaries and affiliates, but not treated as Investments in subsidiaries and affiliates under the applicable accounting principles) Investments in subsidiaries and affiliates Business investment equities (note3) Copyright (c) 2016 Tokio Marine Holdings, Inc. 45 Reconciliation of Business Unit Profits  Domestic Non-Life*1 (TMNF) FY2015 Results (billions of yen) FY2016 Projections YoY Change  International Insurance*1 (billions of yen) FY2015 Results FY2016 Projections Net income for accounting purposes 301.6 245.0 -56.6 Overseas subsidiaries Net income for accounting purposes Difference with EV (Life) Adjustment of non-controlling interests Difference of subsidiaries covered 111.5 -2.0 -2.3 9.5 15.2 131.8 120.7 Provision for catastrophe loss reserves *2 +68.3 +27.0 -41.3 Provision for price fluctuation reserves *2 +3.5 *3 +3.4 -0.1 Gains or losses on sales or valuation of ALM bonds and interest rate swaps Gains or losses on sales or valuation of fixed assets, business related equities and business investment equities (FY2015 Results : Gains or losses on sales or valuation of equity holdings and fixed assets) -21.1 +0.0 21.1 Other adjustments -76.4 -55.0 21.4 *4 Business Unit Profits 159.0 Intra-group dividends -155.7 -62.8 92.9 Other extraordinary gains/losses, valuation allowances, etc -0.2 +0.4 0.6 Business Unit Profits 120.0 158.0 38.0 *1: Each adjustment is on an after-tax basis *2: Reversals are subtracted *3: ALM: Asset Liability Management. Excluded as counter balance items against market value fluctuations of liabilities under ALM *4: Amortization of other intangible fixed assets, head office expenses, etc. Copyright (c) 2016 Tokio Marine Holdings, Inc. 46 Impact of FX rate change on the Group’s Financial Results  Main impact in the event of 1 yen appreciation*1 Impact on P/L 1. Decrease in profit from overseas subsidiaries converted into yen: 2. Change in reserves for foreign currency denominated outstanding claims and derivatives at TMNF: approx. ¥ - 1.0B*2 approx. ¥ + 1.0B*2 *1 Assuming that the FX rate for each currency changes by the same ratio as USD *2 After tax basis  Reference (applied FX rate) Applied FX rate (USD/JPY) FY2014 Results JPY 120.55 (end-Dec.2014) FY2015 Results JPY 120.61 (end-Dec.2015) FY2016 Projections Overseas subsidiaries JPY 112.68 (end-Mar.2016) TMNF JPY 120.17 (end-Mar.2015) JPY 112.68 (end-Mar.2016) Copyright (c) 2016 Tokio Marine Holdings, Inc. 47 Long-term Vision and the Mid-Term Business Plan "To Be a Good Company 2017" Long-term vision A global insurance group that delivers sustainable growth by providing safety and security to customers worldwide - Our timeless endeavor to be a Good Company Aiming for globally competitive-level earnings growth and capital efficiency ~Drive ROE towards double-digit sphere~ Mid-Term Business Plan “To Be a Good Company 2017” ~Evolve business structure to realize sustainable profit growth and higher ROE~ "Innovation and Execution 2014" ~Achieve an ROE exceeding our cost of capital~   Unlocking our potential Capitalizing on changes Pursuing growth opportunities Advancing our business platform Structural reform to profitable business Innovative changes for wellbalanced business portfolio     Profit recovery stage Copyright (c) 2016 Tokio Marine Holdings, Inc. Sustainable profit growth stage 48 Initiatives for “Sustainable Profit Growth”  Enhancement Unlocking our potential  Domestic insurance: Enhancing the integrated business model for life and non-life, strengthening claims-service capabilities, and further utilizing our risk consulting service International insurance: Enhancing organic growth Evolution Capitalizing on changes  Effectively forecasting and proactively meeting the emerging and evolving needs of the market and our customers Strengthening R&D to convert new risks into our business opportunities  Expansion Pursuing growth opportunities  Promoting disciplined business investment to capture growth opportunities globally Enhancing our diversified business portfolio based on risk appetite Advancing ERM and improving risk portfolio to sustainably and comprehensively enhance profit growth, capital efficiency, and financial soundness Strengthening our business platform to further reinforce our globalized business Developing a diverse workforce with a strong customer orientation to drive sustainable growth   Excellence Advancing our business platform   Copyright (c) 2016 Tokio Marine Holdings, Inc. 49 Framework of the Mid-Term Business Plan and Group Management Enhancing Enterprise Risk Management (ERM) to realize sustainable profit growth and higher capital efficiency even in a changing environment, while maintaining financial soundness Generate capital and cash Achieve sustainable profit growth and improve the risk portfolio in each business domain Achieve sustainable profit growth in each business domain  Domestic non-life : Profit growth as the core business of the Group  Domestic life : Profit growth while maintaining financial soundness as a growth driver of the Group  International insurance: Profit growth while globally diversifying risks as a growth driver of the Group Improve the risk portfolio  Reduce the risks associated with business-related equities  Strengthen control of natural catastrophe risks Efficient deployment of capital and cash Invest for growth  Invest in new businesses with high capital efficiency  Invest today to build foundations for our growth tomorrow Enterprise Risk Management (ERM) Return to shareholders  Increase dividends through profit growth  Achieve an appropriate level of capital via flexible repurchases of shares Improve capital efficiency by diversifying our business portfolio Maintain financial soundness Copyright (c) 2016 Tokio Marine Holdings, Inc. + Enhance ROE + Sustainable profit growth 50 Basic Information (Domestic Non-Life 1) - TMNF  Trend of net premiums written and combined ratio C/R(Private Insurance W/P Basis) Net Premiums Written (billions of yen)  Premium composition by Line (FY2015 net premiums written basis) 103.3% 99.4% 97.9% 97.2% 97.4% Marine 91.2% 3.1% 89.8% 89.2% 2,128.3 Others 12.7% CALI 13.3% P.A. 8.2% Fire 14.3% Auto 48.4% 90.9% 92.0% 93.1% 89.8% 1,892.7 1,928.0 1,912.1 1,813.4 1,736.0 1,742.7 1,783.0 1,869.6 1,966.3 2,036.7 2,135.0  Premium composition by sales channel (FY2015 managerial accounting basis) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015  Statistics of combined ratio and loss ratio (private insurance E/I Basis) FY2011 Net E/I C/R* E/I loss ratio Excluding natural catastrophes Expense ratio 103.8% 69.8% 61.3% 34.0% FY2012 99.6% 66.8% 62.8% 32.8% FY2013 97.2% 65.0% 60.1% 32.2% FY2014 90.6% 58.5% 56.9% 32.2% FY2015 92.7% 60.1% 56.0% 32.6% Financial institutions Others 3.5% 14.3% Auto repair shop 2016 8.8% Projections Auto dealership 20.0% Full-time agents 28.3% Corporate 25.1% FY2016 Projections 91.0% 58.3% 55.8% 32.7%  Market share* (FY2014 net premiums written basis) TMNF 25.6% NF 1.7% *: Net E/I C/R=E/I loss ratio + W/P expense ratio Copyright (c) 2016 Tokio Marine Holdings, Inc. *Japanese non-life market (excluding reinsurance companies) 51 Basic Information (Domestic Non-Life 2) - TMNF  Trend of underwriting results in auto insurance (W/P basis combined ratio) <Factors of profitability deterioration>  Increase in senior drivers with high accident frequency  Decrease in per-policy premiums owing to the progress of the average discount rate under the Grade Rating System Increasing trend in unit repair cost <Measures to improve profitability>  Efforts to decrease business expenses such as operational streamlining  Product and rate revisions Introduction of age-bracket rate plans Revision of the Grade Rating System Other measures to improve underwriting result  103.6% 102.9% 103.8% 102.6% 98.5% 94.0%    98.5% 94.9% 96.0% 91.5% 90.1% 89.9% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Projections  Trend of auto insurance policy renewal ratio, combined ratio and loss ratio FY2011 Policy renewal ratio Net E/I C/R* E/I L/R  Rate revisions and profitability improvements per FY (excluding revisions of the Grade Rating System in non-fleet auto insurance) (billions of yen) FY2012 95.3% 100.2% 69.4% FY2013 95.6% 95.7% 65.3% FY2014 95.6% 91.6% 61.1% FY2015 95.7% 91.4% 60.5% FY2016 Projections - 91.8% 60.9% 95.1% 102.9% 70.7% Revision Jan. 2012 Oct. 2012 Oct. 2013 Oct. 2014 Total FY13 7.0 8.0 4.0 19.0 FY14 FY15 FY16 Projections 1.0 26.0 3.0 30.0 4.0 15.0 19.0 3.0 3.0 *: Net E/I C/R =E/I loss ratio + W/P expense ratio Copyright (c) 2016 Tokio Marine Holdings, Inc. 52 Basic Information (Domestic Life) - TMNL  Growing "Medical & Cancer" market 【Composition of number of in-force policies】 (Individual insurance basis, total of Japanese life insurance market)  Growth rate of number of in-force policies at TMNL 【CAGR of in-force policies from FY2000 to FY2014】*1 *1: Total of individual insurance and individual annuities FY2000 20.2% TMNL*2 Average of Japanese life insurance market*3 +13.3% *2: After merger basis FY2014 35.5% 0 Others 50 Medical & Cancer 100 (unit: millions of policy) +2.9% *3 :Source Insurance Statistics (Seiho Toukeigo) (unit: ten thousands of policy) 150 530 500 470 438 349 283 256 317 378 405 Source: The Life Insurance Association of Japan 219 160 134 87 8 1996 187 106 23 1997 41 57 1998 1999 2000 Number of in-force 2015 2014 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 *4 policies at TMNL (total of individual insurance and individual annuities) 2001 *4:Total of TMNL and former FL Through development of product strategies focusing on “life insurance to protect one's living” in response to customer needs, TMNL achieved 5.3 million in-force policies in FY2015, significantly exceeding the market growth Copyright (c) 2016 Tokio Marine Holdings, Inc. 53 Asset Portfolio  Domestic Non-Life (TMNF)  With regard to "long-term insurance liabilities," we aim to maximize the value of surplus by controlling the interest rate risk based on the principle of strict ALM investments  With regard to "Absolute return investment and lending," we work toward diversification of investments with appropriate risk control, in order to maximize net asset value and increase investment income TMNF  Domestic Life (TMNL)  Excluding assets in separate accounts, most assets are assets for backing long-term insurance liabilities. We aim to maximize the value of surplus by controlling the interest rate risk based on the principle of strict ALM investments TMNL Total Total Assets ¥9.6T (as of Mar. 31, 2016) Assets ¥6.9T (as of Mar. 31, 2016) Assets backing long-term insurance liabilities Mainly yen-denominated fixed income assets Appropriately control the yendenominated interest rate risks of longterm insurance liabilities including deposit-type insurance, with yendenominated fixed income assets 28% Absolute return investment and lending 11% (Including short-term investments) Carefully select investment targets from domestic and foreign bonds, etc. and aim for profit contribution Assets backing long-term insurance liabilities Mainly yen-denominated fixed income assets Business-related equities 23% Appropriately control interest rate risks of life insurance liability Continue to reduce holdings Investments in subsidiaries and affiliates 21% 76% Others Assets in separate accounts 14% Former FL Real estate for own use and non-investment assets 17% Others Short-term investments, etc. 10% Copyright (c) 2016 Tokio Marine Holdings, Inc. 54 Basic Information (International Insurance 1) - Net Premiums Written  Net premiums written in international insurance business 1,800 (billions of yen) 1,610.0 1,600 Life 1,400 1,302.6 1,304.0 Reinsurance 1,200 1,074.5 1,000 North America 800 734.3 544.0 319.5 240.2 118.7 413.9 362.6 526.5 600 499.7 Europe*2 South & Central America Asia & Middle East*2 400 200 0 2004 USD/JPY*1 104.2 2005 118.1 2006 119.1 2007 114.1 2008 91.0 2009 92.1 2010 81.4 2011 77.7 2012 86.5 2013 105.3 2014 120.5 2015 120.6 2016 Projections 112.6 *1: FX rates are as of Dec. 31 of each year (FX rate for FY2016 Projections is as of Mar. 31, 2016) *2: Up to FY2015, Middle East is included in Europe. From FY2016, Middle East will be included in Asia Copyright (c) 2016 Tokio Marine Holdings, Inc. 55 Basic Information (International Insurance 2) - Strategic Expansion 2000 2007 2011 2015 Further Growth, Diversification and Capital Efficiency Further Expansion in High Growth Markets Indian Life Business Established Material Presence in Lloyd's (UK) and the US Developed Footholds in Non-Japanese Business (~2000) business development focused on Japanese clients P&C Emerging Markets Life Emerging Markets  Step by step expansion since 2000  International business grew substantially after 2007 due to transformational acquisitions of Kiln, Philadelphia, Delphi, and HCC 56 Copyright (c) 2016 Tokio Marine Holdings, Inc. MEMO Copyright (c) 2016 Tokio Marine Holdings, Inc. MEMO Copyright (c) 2016 Tokio Marine Holdings, Inc. Disclaimer 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. E-mail: URL : www.tokiomarinehd.com Tel : +81-3-3285-0350 201605261700 0:48:34.5 0:49:19.6 0:58:27.6 1:07:03.9 1:08:42.6 1:14:36.4 1:18:05.5 1:23:45.2 1:30:25.1 1:34:43.0 Tsuyoshi Nagano" , "Toshifumi Kitazawa" , "Shinichi Hirose" , "Ichiro Ishii President President Group CEO" , "President of Tokio Marine & Nichido Fire Insurance Co., Ltd." , "President of Tokio Marine & Nichido Life " , "Senior Managing Director 0:00:00.0 Tokio Marine Group Mid-Term Business Plan “To Be a Good Company 2017” FY2016 Business Plan May 2016 Tokio Marine Holdings, Inc. 0:01:27.3 Table of Contents Ⅰ Tokio Marine Group Business Strategy 1. Progress of the Mid-Term Business Plan 2. ERM & Shareholder Returns Ⅱ Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Reference ◆Abbreviations used in this material TMNF : Tokio Marine & Nichido Fire Insurance Co., Ltd. NF : Nisshin Fire & Marine Insurance Co., Ltd. TMNL : Tokio Marine & Nichido Life Insurance Co., Ltd. FL : Former Tokio Marine & Nichido Financial Life Insurance Co., Ltd. Copyright (c) 2016 Tokio Marine Holdings, Inc. 1 Ⅰ Tokio Marine Group Business Strategy Copyright (c) 2016 Tokio Marine Holdings, Inc. 2 Ⅰ. Tokio Marine Group Business Strategy 1. Progress of the Mid-Term Business Plan 2.ERM & Shareholder Returns Copyright (c) 2016 Tokio Marine Holdings, Inc. 3 0:01:57.6 1-1. Objectives of the Mid-Term Business Plan Mid-Term Business Plan “To Be a Good Company 2017” ~Evolve business structure to realize sustainable profit growth and higher ROE~ Group total FY2017 outlook Enhance capital efficiency Sustainable profit growth Enhance shareholder returns Adjusted ROE : Upper 9% range *1 Adjusted Net Income : approx. ¥400B *1 Steady growth of dividends in line with profit growth *1: Released in Nov. 2015 Based on market environment as of the end of Mar. 2015 Business Unit Profits Domestic Non-Life (TMNF) CAGR approx. +3% approx. (billions of yen) Domestic Life (TMNL) CAGR*3 approx. +8% (billions of yen) International Insurance CAGR approx. +8% approx. (billions of yen) + 120 125 2014 Normalized basis *2 2017 Plan 2014 1,037.3 Year-end MCEV Increase in MCEV *2: FX effects are excluded and natural catastrophe losses is normalized to an average annual level Copyright (c) 2016 Tokio Marine Holdings, Inc. 2017 Plan Approx. 1,300 100 *3: CAGR of MCEV 2014 Normalized basis *4 2017 Plan - *4: FX rate is as of the end of Mar. 2015, and natural catastrophe losses is normalized to an average annual level 4 0:02:49.6 1-2. Progress of the Mid-Term Business Plan Steady progress of the Mid-Term Business Plan   Achieved steady growth in FY2015, in line with the Plan Aim for further profit growth in FY2016 Projecting dividend increase backed by our solid earnings power   FY2015 annual dividends per share is planned to be ¥110, an increase by ¥15 YoY FY2016 annual dividends per share is projected to be ¥135, an increase by ¥25 YoY, due to the profit contribution by HCC, etc. Projected to increase by ¥36.1B YoY to ¥388B due to profit contribution by HCC and the progress of the growth strategies in the Mid-Term Business Plan, despite the reversal effect of temporary increase in gains on sales of securities in FY2015 2015 2016 Projections Net incurred losses relating to natural catastrophes (before tax, billions of yen) Domestic Non-Life International Insurance Total Sustainable profit growth Adjusted Net Income (billions of yen) +36.1 323.3 351.9 388.0 77.4 15.7 93.1 48.0 47.0 95.0 Net Income (financial accounting) 2014 247.4 2015 254.5 2016 Projections 265.0 Enhance capital efficiency Adjusted ROE 8.9% +1.4pt 9.1% 10.5% Projected to increase by 1.4pts YoY to 10.5% due to profit contribution by HCC as well as a decrease in adjusted net assets associated with the decline in stock price and the appreciation of the yen, etc. 2014 ROE (financial accounting) 7.9% 2015 7.2% 2016 Projections 7.5% Enhance shareholder returns Copyright (c) 2016 Tokio Marine Holdings, Inc. Dividends Per Share ( yen) +25 (planned) 110 (projections) 135 Projecting dividend increase for 5 consecutive years in line with profit growth Annual dividend is projected to be ¥135 per share (+ ¥25 YoY per share) 95 2014 2015 2016 Projections 5 0:04:41.0 1-3. Contribution by HCC Impact on adjusted ROE : +2.3pts Adjusted ROE Impact on adjusted EPS : +13% Adjusted EPS 10.5% 8.2% ¥452 ¥514 2016 Projections (excluding HCC) 2016 Projections (including HCC) 2016 Projections (excluding HCC) 2016 Projections (including HCC) Further diversifying risks globally, leading to a more stable group business foundation Insurance Premiums *1 International 35% 71% 26% 2016 Projections 65% (including HCC) Business Unit Profits *2 International 43% 8% HCC Domestic 12% HCC Domestic 29% 36% 64% 2016 Projections (excluding HCC) 2016 Projections (excluding HCC) 31% 2016 Projections (including HCC) 57% Copyright (c) 2016 Tokio Marine Holdings, Inc. *1: Net premiums written + life insurance premiums *2: Domestic businesses include domestic non-life, domestic life, and financial and general 6 0:06:11.7 1-4. Creating group synergies (1) Pursuing synergies by leveraging the Group's global footprint, high expertise of each group company, and its financial strengths, etc. Global Footprint • Wide network in both developed and emerging countries • Strong customer base Expertise of each group company • Strong underwriting technical expertise • Leading positions in the market and specific areas Synergy Creation Revenue <Examples> Overseas Japan  Providing specialty products of HCC and Philadelphia, etc. to Japanese corporate customers and cross selling through each company's sales network  Joint underwriting of insurance program by Tokio Marine Kiln, HCC and Tokio Marine Insurance Singapore coordinated by Tokio Marine Asia, at a large-scale commercial event in Asia  Joint product development by leveraging the knowhow at Tokio Marine Kiln Copyright (c) 2016 Tokio Marine Holdings, Inc.  Establishing global underwriting capability for D&O, etc. utilizing know-how at HCC  Support for Japanese corporations expanding businesses abroad by utilizing overseas experiences and know-how 7 0:07:18.2 1-5. Creating group synergies (2) • Investment Enhancing investment return through Delphi’s superior investment expertise Entrust the asset management of a portion of assets held by the Group companies* to Delphi with high investment expertise * Asset management entrusted to Delphi Philadelphia (from Jul. 2014), Tokio Millennium Re (from Jul. 2015), TMNF (from Jan. 2016), HCC (from Mar. 2016) • Capital Optimizing retention strategy and outward reinsurance on a Group basis Expand underwriting capacity of each Group company leveraging the Group’s risk diversification effect Reduce cost of outward reinsurance through intra-Group reinsurance, leveraging the Group’s financial strengths • • Cost Cost reduction through effective use of the Group resources and scale merit Cost reduction by joint purchase of IT system, etc. Optimize resources due to delisting of company purchased and utilizing shared services • Copyright (c) 2016 Tokio Marine Holdings, Inc. 8 0:08:20.4 1-6. Further integration and alignment in Group decision making Establish Group Chief Officer positions and committees as well as strengthen its functions to globalize and strengthen Group management system  Involvement of top management at overseas subsidiaries in solving Group management issues with their expertise  More focus by the Group CEO on Group management to maximize the Group’s comprehensive capability  Globalization and Strengthening Maximize the Group’s comprehensive capabilities Financial and General Group CEO Group Chief officer (by order of organization) More focus on Group management by the Group CEO Dept. in charge Domestic Non-life Domestic Life International Insurance CRDO Research and Development Research and Development Financial Planning Corporate Planning Global Retention Strategy Human Resources IT Planning Risk Management Committees Major management issues Risk management Asset management IT Retention strategies ,etc. CIO Investment • Enhancing group governance • Utilization of the Group management resources • Involvement in the Group management by overseas talent CFO Financial CRSO Retention Strategy CHRO Human Resources CITO Information Technology CRO Risk Copyright (c) 2016 Tokio Marine Holdings, Inc. Involvement of top management at overseas subsidiaries 9 0:10:07.7 Ⅰ. Tokio Marine Group Business Strategy 1. Progress of the Mid-Term Business Plan 2.ERM & Shareholder Returns Copyright (c) 2016 Tokio Marine Holdings, Inc. 10 0:10:16.9 2-1. Promoting Strong ERM (Controlling Risk and Capital) Maintain financial soundness Balance capital and risk to maintain AA credit ratings • • Advance natural catastrophe risk management Ensure our financial base can withstand catastrophic risks Enhance profitability × Sustainable profit growth and enhance capital efficiency • • • Invest in businesses which enhance capital efficiency Improve the profitability of existing businesses Continue to sell business-related equities Control risk and capital in accordance with risk appetite* * Insurance risk control : Pursue sustainable growth, risk diversification (stabilization), and improvement of capital efficiency through global business expansion Investment risk control : Secure liquid assets and stable profits mainly through ALM    Comfortable level of ESR calculated based on 99.95% VaR is 100~130% in light of financial soundness and profitability, and current ESR is sufficient for maintaining financial soundness Business continuity is confirmed even in the event of stress scenario When ESR becomes below 100%, confirm the necessity of action with consideration of the outlook of future profit accumulation and restricted capital Utilize capital buffer 130%*1 *1: Capital level which can maintain AA credit ratings withstanding once-in-a-decade risks • Invest in businesses for growth and take additional risks • Repurchase shares • Prepare for regulation changes and significant changes in business environment 106%*2 Comfortable Level as of the end of Mar. 2016 *2: 128% at 99.5% VaR Confirm the necessity of action Consider to recover capital level Consider the below with consideration of the outlook of future profit accumulation and restricted capital •Refrain from investment in businesses and additional risk-taking •Consider risk reduction measures Copyright (c) 2016 Tokio Marine Holdings, Inc. 100% ESR 99.95% VaR 11 0:12:06.9 2-2. Promoting Strong ERM (Disciplined Capital Management)   Utilize strict capital model which calculates risk capital based on 99.95%VaR (standard to maintain AA credit rating) and excludes restricted capital, while referring to the method in Solvency Ⅱin Europe, etc. Reflected recent negative interest rate in calculating risk capital  Economic Solvency Ratio (ESR) 111% Factors of changes in net asset value  Contribution of 2H FY15 adjusted net income  Decrease in unrealized gains of business-related equities  Decrease in MCEV associated with etc. interest rate decline  Impact of market changes on ESR and our measures 106%* * 128% at 99.5% VaR — Share price: Continue to sell business-related equities as the impact on ESR associated with the market value fluctuation is large Risk capital Net asset value trillion yen 2.8 3.1 trillion yen Factors of changes in risk capital  Sales of business-related equities  Decrease in risks of business-related equities due to decline in share price  Increase in interest rate risks due to etc. decline in interest rates Risk capital Net asset value — Interest rates: Impact on ESR increased due to the decline of interest rate. While preparing for the future rise in interest rate, control the impact of interest rate fluctuation through ALM — FX rates: Limited impact on ESR, as appreciation of the yen decreases net asset of overseas subsidiaries, whereas decreases FX risks. Policy is to basically limit FX risks trillion yen trillion yen 2.9 3.0 Mar. 31, 2016 106% 115% 96% 110% 103% Sept. 30, 2015 Mar. 31, 2016 Share Price +30% -30% Interest Rate +10bp ¥17,388 Nikkei Stock Average ¥16,758  Net Asset Value Net Asset Value = Consolidated net asset on financial accounting basis + Liability of capital nature (catastrophe loss reserves, price fluctuation reserves, etc.) (after-tax basis) goodwill, etc. -10bp Copyright (c) 2016 Tokio Marine Holdings, Inc. Planned distribution to shareholders Value of life + insurance policies in-force Restricted capital, etc. 12 0:13:16.1 2-3. Shareholder Returns  Our primary means of shareholder returns is dividends, which we plan to increase in line with profit growth Steady growth of dividends  We pursue steady growth of dividends, and payout ratio as a guide is above 35% of average adjusted net income - FY2015 : Projection for year-end dividends is revised upward by ¥5 to ¥57.5 per share, and annual dividends is planned to increase by ¥15 YoY to ¥110 - FY2016 : Annual dividends is projected to increase by ¥25 YoY to ¥135 per share (payout ratio* of 35%), an increase for five consecutive years *payout ratio to average adjusted net income + Flexible share repurchases  We intend to conduct share repurchases in a flexible manner based on a comprehensive assessment of market conditions, our capital levels, business investment opportunities, and other relevant factors ■ : Dividends per share ¥135 (Projections) ¥110 (Plan) ¥95 ¥70 ¥48 ¥36 ¥48 ¥50 ¥50 ¥50 ¥55 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Copyright (c) 2016 Tokio Marine Holdings, Inc. 13 0:15:11.7 2-4. Group Asset Management Group Asset Management Concept  With asset and liability management (ALM) at the core, we aim for steady profit growth while ensuring liquidity  Further strengthen investment capability by enhancing coordination among Group companies in Japan and overseas and promoting global investment diversification <Investment policy for each asset>  Domestic bond: Hold for controlling interest rate risks of yen-dominated insurance liabilities while closely watching the market trend  Foreign securities (mainly foreign bonds) : Increase the balance through investment in bonds in the U.S. and Europe by domestic subsidiaries as well as asset expansion at overseas subsidiaries Asset composition of TMHD (Consolidated) ※As of the end of Mar. 2016  Domestic equities (business-related equities): Continue to sell more than ¥100B per year from the perspective of enhancing capital efficiency Investment yield of the Group 2.1% 2.0% 1.0% 2.3% 2.2% Income return Impact from low interest rates in Japan is limited due to investment portfolio centered on long-term bonds and increased foreign assets with higher yield ■ Others ¥3.1T Mainly tangible fixed assets and intangible fixed assets, etc. ■ Cash and deposits ¥1.0T 4.7% 14.4% Total Assets 6.2% ■ Loans ¥0.8T ■ Monetary receivables bought ¥1.3T Mainly absolute return investment & lending by Domestic Non-Life (TMNF) and overseas subsidiaries 4.0% ■ Other securities ¥0.9T Mainly assets in separate accounts held by Domestic Life 4.4% 2013 2014 2015 ¥21.8T 20.8% 10.6% 34.9% Continuous reduction of business-related equities Sold total amount of ¥1.3T*1 since FY2004 Book value*2 has declined approx. by half ■ Foreign securities ¥4.5T Mainly local country bonds held by overseas subsidiaries mainly in the U.S. and Europe ■ Domestic bonds ¥7.6T Domestic government bonds (JGB): Approx. ¥6.8T Mainly bonds for the purpose of ALM by Domestic Life and Non-Life 100 93 2008/3E ■ Domestic equities ¥2.3T Mainly business-related equities held by Domestic Non-Life (TMNF) Copyright (c) 2016 Tokio Marine Holdings, Inc. 66 2012/3E 50 2016/3E 2004/3E *1: Market price at the time of sale *2: Figure at the end of FY2003 is set at index value of 100 14 Ⅱ Business Plan and Strategy by Domain Copyright (c) 2016 Tokio Marine Holdings, Inc. 15 0:17:13.2 Ⅱ. Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Copyright (c) 2016 Tokio Marine Holdings, Inc. 16 0:17:33.1 1-1. TMNF FY2016 Projections  Net premiums written is projected to expand due to steady execution of growth strategies, etc.  Business unit profits is projected to increase due to revenue growth as well as the reversal effect of an increase in natural catastrophes losses in FY2015, etc.  Net Premiums Written (billions of yen) CAGR +2.4% +0.3%  Projected to increase by 0.3% YoY due to premium growth in auto, etc., despite the reversal effect of an increase owing to policy 2,135.0 2,128.3 2,036.7 review by customers before the product revisions of fire insurance in FY2015  CAGR from FY2014 is +2.4%, steadily increasing in line with the Mid-Term Business Plan 2014 2015 2016 Projections  Business Unit Profits (billions of yen) +38.0 120.0 158.0  Projected to increase by ¥38.0B YoY due to the reversal effect of an increase in natural catastrophes losses in FY2015, etc.  Growth in FY2016 projection exceeds the target of +3% CAGR* in the Mid-Term Business Plan 113.7 2014 Copyright (c) 2016 Tokio Marine Holdings, Inc. *CAGR from FY2014 normalized basis (approx. ¥120B) in which effect of FX rate is excluded and natural catastrophes losses is normalized to an average annual level 2015 2016 Projections 17 0:19:23.6 1-2. TMNF Combined Ratio Combined ratio is stable, as a result of measures implemented to improve profitability  Combined Ratio (Private insurance: E/I basis*) 99.6% 97.5% 97.2% 94.4% 90.6% 91.4% 92.7% 90.8% ■ After normalizing natural catastrophes to an average annual basis approx. 92~93% 91.0% 2012 E/I loss ratio (Excluding natural catastrophes) (Natural catastrophes normalized to an average annual basis) Expense ratio 2013 65.0% 60.1% 62.2% 32.2% 2014 58.5% 56.9% 59.2% 32.2% 2015 60.1% 56.0% 58.2% 32.6% 2016 Projections 58.3% 55.8% - 32.7% 2017 Plan 66.8% 62.8% 64.7% 32.8% *: Loss ratio (private insurance E/I basis) + expense ratio (private insurance W/P basis)  Auto Loss Ratio (E/I basis) 69.4% 65.3% 61.1% 60.9% 60.5% 2012 Auto E/I C/R Auto E/I loss ratio Copyright (c) 2016 Tokio Marine Holdings, Inc. 2013 95.7% 65.3% 2014 91.6% 61.1% 2015 91.4% 60.5% 100.2% 69.4% 2016 Projections 91.8% 60.9% 18 0:20:41.7 1-3. TMNF - Measures to achieve sustainable growth (1) Strengthen customer contacts through productivity improvements to enhance the value delivered to customers to become "the best choice" • Further integration of the business model for life and non-life Expand Comprehensive Discount Super Insurance in Oct. 2016 (millions of policies) 1.92 ●TMNF Number of auto insurance policies 0.85 ●Number of automobiles owned nationwide 110 (managerial accounting basis, changes over the past one-year) (source: Automobile Inspection & Registration Information Association) for 2011/3E 2016/3E 109.9 • Expand product lines applied • Higher discount rates “Super Insurance” Number of in-force policies 95.7% Non-fleet auto Insurance 97.0% 105 103.4 Enhance cross-sell and renewal ratio Renewal Ratio* Super Insurance auto *FY2015 results • Advancing risk consulting services • Strengthen disaster countermeasures and provide BCP planning services based on earthquake disaster prevention plans • Identify risks and provide solutions for Japanese companies expanding businesses overseas 100 2011/3E 2012/3E 2013/3E 2014/3E 2015/3E 2016/2E Growth rate of number of autos* * 2011/3E is set at index value of 100 (billions of yen) 2,200 +4.5% • More edge to our claims-services Strengthen claims-service capability of employees and agents • Provide safety and security to all customers regardless of accident encounter • Further enhance our expertise and customer service capability • Establish system to support claims-service of employees and agents 2,000 Initiatives to strengthen capability for wide-area disasters Enhance Strengthen support + IT system mobility • Quick launch of nation-wide support team, enhancing support capability • Digitize accident report between agents and the company 1,800 1,600 1,400 1,200 1,000 2011 2012 2013 2014 2015 Enhance customer satisfaction Copyright (c) 2016 Tokio Marine Holdings, Inc. Net Premiums Written (all lines) 19 0:26:18.3 1-4. TMNF - Measures to achieve sustainable growth (2) Promoting R&D to capitalize on changes in business environment Providing new value such as preventive safety and loss reduction measures Drive Agent (for corporate clients) Automatic Accident Report Service (for individual customers) Responding to evolving risks New roles for insurance company • Study and research on legal responsibilities relating to accidents • Participation in demonstration tests on public roads for autonomous vehicles and development of specialized insurance package Auto • Comprehensive service using telematics technology • Automatic accident report service • Safety driving consultation • Accident prevention function which issues warnings when the vehicle is veering off lane Number of foreign tourists visiting Japan* 20 million • Automatic accident reporting process using beacon technology Target by the Government 2020: 40 million 2030: 60 million Inbound Insurance & Services • New travel insurance for foreign tourists after entering Japan, applicable through smart phones • Multi-lingual interpretation services for business organizations Increase in inbound tourists 15 10 5 0 2011 2013 2015 * source : Japan National Tourism Organization Utilization of technological innovation in the value chain of insurance business Technological innovation • Big data • AI Technological Innovation • Sales / Marketing • Pricing / Underwriting • Claims service 20 • Wearable technology Copyright (c) 2016 Tokio Marine Holdings, Inc. (Blank Page) Copyright (c) 2016 Tokio Marine Holdings, Inc. 21 0:28:47.4 Ⅱ. Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Copyright (c) 2016 Tokio Marine Holdings, Inc. 22 0:29:07.1 2-1. TMNL FY2016 Projections Aiming for steady growth maintaining financial soundness and profitability by promoting sales shift from saving-type products to protection-type products  New Policies Annualized Premiums (ANP) CAGR +12% +6% 114.1 84.9 119.7 100.4 112.7 107.1 (billions of yen)  New Policies ANP ̶ Projected to increase in line with the Mid-Term Business Plan by limiting the sales of saving-type products and continued launch of protection-type products under the low interest rate market in Japan Excluding long-term saving type products, protectiontype products is projected to increase by 6% YoY Accordingly, the product ratio of ANP other than longterm saving–type products is projected to increase by 11pts YoY to 95% ̶ ̶ 2014 2015 Total of new policies ANP Excluding long-term saving-type products (individual annuities and “whole life with long-term discount”) 2016 Projections  Individual Insurance・Number of New Policies (ten thousands of policies) CAGR +6%  Number of New Policies for Individual Insurance 60 53 58 ̶ Projected to increase by 3% YoY due to new cancer and medical insurance products released in FY2015 despite continuously limiting the sales of saving-type products 2014 Copyright (c) 2016 Tokio Marine Holdings, Inc. 2015 2016 Projections 23 0:30:56.4 2-2. TMNL - Change in MCEV and measures for low interest rates  Business Unit Profits (Increase in MCEV) (billions of yen) Changes in economic environment (decline in -38.3 interest rates, etc.) payment of shareholders’ dividends 1,037.3 ̶ MCEV is projected to increase by ¥39.0B in FY2016. Ensure profitability by promoting protection-type products while expecting effects of low interest rates 811.6 +39.0 Value of new business and release of discounted value of in-force business, etc. 2015 811.6*1 -187.4 115.6 2016 projections 850.6 39.0 39.0 -303.0 +115.6 Value of new business and release of discounted value of in-force business, etc. 850.6 ̶ Product revisions, etc. have been already made in response to the low interest rates (see below chart). Additional measures will be taken as needed 2014 Year-end MCEV MCEV Increase MCEV Increase *2 *3 Major product revisions, etc. responding to low interest rates FY2015 ■Product revision ・“Whole life with long-term discount” ・Individual annuity ・Single payment whole-life ・Single payment increasing whole-life FY2016 ■Suspension of sales ・Single payment whole-life ・Single payment increasing whole-life ・Single payment endowment (renewal) 1,037.3*1 *1: Figures for FY2014 and FY 2015 are after payment of shareholders’ dividends of the prior fiscal year *2: Excluding the effects of payment of shareholders’ dividends *3: Excluding the effects of payment of shareholders’ dividends and changes in economic environment (MCEV : Market Consistent Embedded Value) An index used to assess the value of life insurance business consistent with the value of financial instruments in the financial market Future economic condition is based on assumptions that the market conditions at the end of Mar. 2016 will continue ■Partial suspension of sales ・“Whole life with long-term discount” ・Whole-life *New sales of single payment endowments and single payment individual annuities were suspended before FY2014 Copyright (c) 2016 Tokio Marine Holdings, Inc. 24 0:33:21.1 2-3. TMNL - Promotion of “Life Insurance Revolution to Protect One’s Living” Expand and strengthen our unique product line-up which meets the diverse customer needs and serve as a source of stable profit Outpatient treatment (After discharge) Hospitalization / Surgery <Medical insurance> Inability to work (Home care) Nursing care requirement (Permanent disability) <Conventional life insurance> Death Coverage for conventionally untapped area  Extend coverage in response to the latest medical treatment  Proper pricing based on the latest medical data and the streamlining of business operations Introduced unique R (return) function FY2015 New Products In response to the latest medical treatment including chemotherapy Competitive pricing and flexibility in coverage No. of new policies of cancer insurance since its launch in Jul. 2015 : 110K (+205% YoY) Third-sector (Medical/Cancer) New policies ANP (billions of yen) 24.4 19.4 FY2015 Product revision Extended coverage in response to the latest medical treatment No. of new policies of medical insurance since its launch and revision in Nov. 2015 : 140K (+142% YoY) 2014 2015 Continue to launch unique products with coverage for untapped area Copyright (c) 2016 Tokio Marine Holdings, Inc. 25 0:35:55.7 2-4. TMNL - Strengthening growth potential Achieve growth in all four distribution channels by promoting multi-channel strategies FY2015 Results* +11% Initiatives in FY2016 Channel Composition (life insurance premiums on managerial accounting basis at the end of Mar. 2016 ) Life Partner approx. 10% Bancassurance approx. 10% Non-life Agents Life Professionals approx. 25% approx. 55% Non-life Agents 2014 2015  Develop products which promote integrated sales approach of life and non-life  Enhance sales ability by deploying dedicated salesperson for life  Differentiate from competitors leveraging the highly unique “Premium Series”  Support for establishment of sales system in response to the revision of Insurance Business Act  Strengthen business tie-up with non-life agents through full-time support by life partners at non-life insurance branches 2015 +14% Life Professionals 2014 2015 +15% Life Partners 2014  Recruiting sales agents with capability +21% Bancassurance 2014 2015  Sales promotion of protection-type products with installment plans *Life insurance premiums on managerial accounting basis at the end of Mar. 2016 excluding long-term saving-type products Further growth of the major four distribution channels with competitive products and sales ability Copyright (c) 2016 Tokio Marine Holdings, Inc. 26 0:38:14.7 Ⅱ. Business Plan and Strategy by Domain 1. Domestic Non-Life 2. Domestic Life 3. International Insurance Copyright (c) 2016 Tokio Marine Holdings, Inc. 27 0:38:24.4 3-1. International Insurance - FY2016 Projections  Continue initiatives to achieve further profit growth by maintaining underwriting discipline even under the softening market  With contribution from HCC, promote further diversification of risks and expand profit growth as well as accelerate initiatives for creating synergies to generate additional values Net Premiums Written (billions of yen) +23% 1,610.0 (incl. HCC) 1,304.0 1,230.0 Business Unit Profits (billions of yen) +21% 159.0 (incl. HCC) 145.5 115.0 1,302.6 1,160.0 1,261.0 (excl. HCC) 131.8 100.0 115.0 (excl. HCC) 2014 Results Normalized basis* Applied FX rate Dec. 31, 2014 (USD/JPY) JPY 120.5 Applied FX rate (USD/JPY) 2015 Dec. 31, 2015 JPY 120.6 2016 Projections Mar. 31, 2016 JPY 112.6 Mar. 31, 2016 JPY 112.6 Results Normalized basis* 2014 Applied FX rate Dec. 31, 2014 (USD/JPY) JPY 120.5 2015 Dec. 31, 2015 JPY 120.6 2016 Projections Mar. 31, 2016 JPY 112.6 *Excluding yen conversion FX effects Mar. 31, 2016 Applied FX rate JPY 112.6 (USD/JPY) *Excluding yen conversion FX effects. Natural catastrophe losses is normalized to an average annual level  Projected to increase by 23% YoY mainly due to contribution from HCC  Projected to increase even on a normalized basis excluding contribution from HCC and the effect of the appreciation of the yen Composition of net premiums written (2016 Projections) South & Central America 7% Asia. Middle East 8% Reinsurance 8% Europe 9% 5% Copyright (c) 2016 Tokio Marine Holdings, Inc.  Projected to increase by 21% YoY mainly due to contribution from HCC  Projected to increase even on a normalized basis excluding contribution from HCC in FY2016 and normalizing natural catastrophe losses in FY2015 to an average annual level Life 6% HCC 22% Phila delphia 21% Delphi 14% North America 62%  With contribution from HCC, pursue further growth opportunities and accelerate the establishment of diversified business portfolio  Pursue balanced growth in both developed and emerging markets through “organic growth” and “strategic M&A” 28 Others 0:41:27.0 3-2. North America - Philadelphia Maintaining profit growth outperforming the market through underwriting discipline and action  Highly competitive business model focusing on niche markets  Maintaining C/R lower than market average through underwriting discipline  Maintaining high renewal ratio of in-force policies and continuing rate increases through strong franchise network Net Premiums Written 342.3 323.9 3,190 319.0 Normalized basis 302.0 3,020 Composition of Premiums Income (2015) ¥332.0bil ■ Human Services ■ Real Estate ■ Public Service ■ Mgmt & Prof. ■ Sports & Rec. ■ Other 30% 18% 13% 13% 9% 17% 2014 2015 2016 Projections Business Unit Profits 91% 91% 46.4 ¥40.0bil 38.0 Combined Ratio C/R 94% 110% US P&C market average Philadelphia 42.3 41.0 Normalized basis 100% 90% 2014 2015 2016 Projections 80% FY10 FY11 FY12 FY13 FY14 FY15  Projecting steady profit growth even under the softening market Copyright (c) 2016 Tokio Marine Holdings, Inc. 29 0:43:10.6 3-3. North America - Delphi Maintaining profit growth through profound investment expertise as well as further developing specific products and specific markets  Highly competitive business model focusing on market for employee benefits and excess workers compensation  Utilization of profound investment expertise  Maintaining high retention ratio and continuing rate increases in main products Net Premiums Written 241.3 236.6 225.0 221.0 Normalized basis 2,210 2,250 Composition of Premiums Income (2015) ¥232.0bil Non-life 38% ■ Disability ■ Group life ■ Others (Life) Life 62% 33% 22% 7% Life 62% ■ Excess W/C ■ Others (Non-life) 22% 16% Non-life 38% 95.2% 2014 2015 2016   Projections Business Unit Profits 96% 96% 44.4 40.2 39.0 Normalized basis 36.0 Combined Ratio C/R 98% 110% US P&C market average Delphi ¥42.0bil 100% 90% 2014 2015 2016 Projections 80%  Projecting profit growth mainly due to an increase in investment income Copyright (c) 2016 Tokio Marine Holdings, Inc. FY10 FY11 FY12 FY13 FY14 FY15 30 0:43:42.2 3-4. North America - HCC A world leading specialty insurer Aiming for further profit growth through synergy creation while maintaining high profitability  Diverse and highly profitable portfolio  Disciplined growth and best-in-class underwriting profitability  New business development and further profit expansion through synergy creation Net Premiums Written ¥349.0bil Composition of Premiums Income (2015) LOBs that are less dependent on the P&C market cycles (approx. 58%) Medical Stop-loss Agriculture US Surety Sports & Entertainment International Surety & Credit Other A&H US Credit 25% 16% 4% 3% 3% 4% 2% 2016 Projections Total 58% Business Unit Profits C/R 88% ¥44.0bil 100% 110% Combined Ratio US P&C market average HCC 90% 2016 Projections 80%  Further strengthen business platform of North America due to profit contribution from FY2016 Copyright (c) 2016 Tokio Marine Holdings, Inc. FY10 FY11 FY12 FY13 FY14 FY15 31 0:44:39.6 3-5. Europe / Reinsurance  Expanding profit mainly in specialty business in the Lloyd’s market  Maintaining underwriting discipline as continuous softening of the European market is expected Europe  Under the softening market, continue maintaining stable profit by promoting geographical and product line diversification  Expanding source of profit through solution offering to meet customer needs Reinsurance Net Premiums Written Normalized basis 152.4 148.4 134.0 ¥147.0bil Net Premiums Written Normalized basis 188.3 149.5 137.0 175.0 ¥134.0bil 129.0 2014 2015 96% 2016 Projections   C/R 94% 2014 2015 2016 Projections C/R 97% Business Unit Profits Normalized basis 94% 19.7 10.0 Business Unit Profits Normalized basis 93% 93% ¥9.0bil 8.0 1.0 9.6 1.0 10.6 ¥9.0bil 2.0 2014 2015 2016 Projections 2014 2015 2016 Projections  Projected to increase mainly due to the reversal effect of large losses such as Tianjin port explosion and foreign exchange losses in FY2015  Projected to increase mainly due to the reversal effect of large losses in FY2015 Tokio Marine Kiln Premium composition of Lloyd’s business Others Aviation 4% 6% 10% By line 2015 110% Combined Ratio Lloyd’s market average 100% Change in portfolio (Earned premiums basis) non-natcat natcat natcat approx. approx. Combined Ratio 130% 110% 90% 70% 50% 30% FY07 FY09 * Peer average* TMR TMK (Lloyd’s business) non-natcat 40% natcat A&H Property & Liability 54% Re 9% insurance 17% Marine 80% 90% FY11 FY13 FY15 2007 80% 2011 2015 FY10 FY11 FY12 FY13 FY14 FY15 Copyright (c) 2016 Tokio Marine Holdings, Inc. * Average of 12 peer companies as below: (Renaissance Re, Validus, Ace(R/I only), Axis(R/I only), Montpelier Re, Markel, AWAC, Arch, Endurance, Aspen, Everest Re, Partner Re) 32 0:46:26.8 3-6. Emerging Countries South & Continue profit growth by providing products Central and services which meet the needs of customers through high quality operation America Net Premiums Written 132.1 Normalized basis 91.0 Asia Achieve growth in the retail market by expanding distribution channels and Middle rolling-out the best-practice within the Group East Life Non-life Normalized Net Premiums Written basis 118.7 105.0 102.7 105.0 ¥117.0bil 115.7 112.0 ¥124.0bil 117.9 105.0 82.9 81.0 ¥94.0bil 2014 2015 2016 Projections 2014 2015 2016 Projections Normalized basis 2014 2015 2016 Projections Business Unit Profits 100% 100% C/R 100% Business Unit Profits 91% 91% 14.8 13.0 C/R 95% 5.8 Normalized basis 3.0 2014 5.3 5.0 17.1 ¥4.0bil 14.0 9.4 ¥10.0bil 8.0 0.6 2015 2016 Projections 2014 2015 2016 Projections 2014 ¥2.0bil 1.0 2015 2016 Projections  Continue to aim for solid profit growth, although projected to decrease mainly due to the effect of change in tax law in Brazil  Maintaining high growth outperforming market and profitability in auto insurance as the main business  Projected to decrease due to the reversal effect of temporary increase factors in FY2015  Projected to increase due to the reversal effect of a decrease in unrealized gains associated with the decline in stock prices in FY2015, etc. Brazil (Local currency basis premium) Market CAGR +10% BRL(millions) 3,000 2,000 1,000 FY12 FY13 FY14 FY15 2013-2015 Major Asian Countries (Non-life gross premium CAGR) Tokio Marine CAGR +21% Copyright (c) 2016 Tokio Marine Holdings, Inc. 33 3-7. International Insurance - FY2016 Projections by Region Net Premiuns Written (billions of yen) YoY Change 328.1 -10.3 -9.3 349.0 -1.4 14.2 8.2 -54.3 294.8 11.0 % 49% -3% -4% -1% 14% 7% -29% 24% 13% (Ref.) (Excluding *3 FX effects) Business Units Profits (billions of yen) YoY Change 33.3 -6.4 -2.4 44.0 0.9 -1.3 -4.8 -1.6 26.6 1.3 % 35% -14% -5% 11% -25% -33% -16% 20% 231% (Ref.) (Excluding *3 FX effects) C/R 2014 2015 2016 Projections 2014 2015 2016 Projections 2014 2015 2016 Projections North America (incl. HCC)   Philadelphia   Delphi   HCC Europe*4 South & Central Asia & Middle East*4 Reinsurnace Total Non-Life* Life 1 631.2 323.9 236.6 152.4 132.1 118.7 149.5 1,184.7 117.9 665.8 342.3 241.3 148.4 102.7 115.7 188.3 1,221.1 82.9 994.0 332.0 232.0 349.0 147.0 117.0 124.0 134.0 1,516.0 94.0 60% 4% 3% 9% 11% 11% -24% 32% 15% 87.2 42.3 40.2 19.7 5.8 17.1 9.6 138.6 9.4 95.6 46.4 44.4 8.0 5.3 14.8 10.6 134.3 0.6 129.0 40.0 42.0 44.0 9.0 4.0 10.0 9.0 161.0 2.0 44% -8% 1% 24% -27% -30% -10% 28% 187% 94% 91% 96% 94% 100% 91% 93% 94% - 94% 91% 96% 96% 100% 91% 93% 95% - 93% 94% 98% 88% 94% 100% 95% 97% 94% - Total*2 1,302.6 1,304.0 1,610.0 305.9 23% 31% 145.5 131.8 159.0 27.1 21% 29% 94% 95% 94% *1: Total Non-Life figures include some life insurance figures of composite overseas subsidiaries *2: After adjustment of head office expenses *3: Local currency basis *4: Before, Middle East was included in Europe, but from FY2016, Middle East will be included in Asia (same for FY2014 and FY2015 in the above chart) 2014 Applied FX rate As of endDec. 2014 2015 As of endDec. 2015 2016 Projections As of endMar. 2016 Change -7% -9% 3% 3% (USD / JPY) (GBP / JPY) (Brazilian Real / JPY) Y) (Malaysian Ringgit / JPY ¥120.5 ¥187.0 ¥45.3 ¥34.4 ¥120.6 ¥178.7 ¥30.4 ¥28.0 ¥112.6 ¥161.9 ¥31.3 ¥28.8 Copyright (c) 2016 Tokio Marine Holdings, Inc. 34 (Blank Page) Copyright (c) 2016 Tokio Marine Holdings, Inc. 35 Reference a ・Tokio Marine Holdings Key Statistics ・Return to Shareholders ・FY2015 Results Overview ・FY2016 Projections Overview ・Definition and Reconciliation of Adjusted Net Income, Adjusted Net Assets and Adjusted ROE ・Definition and Reconciliation of Business Unit Profits ・Impact of FX rate change on the Group’s Financial Results ・Long-term Vision and Mid-Term Business Plan "To Be a Good Company 2017" b c ・Initiatives for “Sustainable Profit Growth” ・Framework of the Mid-Term Business Plan and Group Management ・Basic Information (Domestic Non-Life) - TMNF ・Basic Information (Domestic Life) - TMNL ・Asset Portfolio ・Basic Information (International Insurance) d Copyright (c) 2016 Tokio Marine Holdings, Inc. 36 Tokio Marine Holdings Key Statistics FY2006 Net income (billions of yen) Shareholders' equity after tax (billions of yen) EPS (yen) BPS (yen) ROE PBR Adjusted net income (billions of yen) Adjusted net assets (billions of yen) FY2007 108.7 2,563.5 133 3,195 3.6% 1.15 99.4 15.1 29.7 -1.0 60 FY2008 23.1 1,627.8 29 2,067 1.1% 1.16 5.1 -57.2 20.8 -21.1 50 FY2009 128.4 2,169.0 163 2,754 6.8% 0.96 46.2 52.0 76.5 -9.4 95 FY2010 71.9 1,886.5 92 2,460 3.5% 0.90 20.4 27.5 24.8 -0.7 187 FY2011 6.0 1,839.6 7 2,399 0.3% 0.95 30.7 2,301.6 40 3,001 1.3% 0.76 -26.1 15.9 -11.9 2.6 206 FY2012 129.5 2,340.7 168 3,052 6.2% 0.87 163.1 2,746.5 212 3,580 6.5% 0.74 48.3 110.3 69.2 -18.7 115 FY2013 184.1 2,712.7 239 3,536 7.3% 0.88 243.7 3,172.5 317 4,135 8.2% 0.75 34.0 104.5 136.9 2.5 109 FY2014 247.4 3,578.7 323 4,742 7.9% 0.96 323.3 4,103.4 423 5,437 8.9% 0.83 122.5 139.8 145.5 4.0 112 FY2015 254.5 3,484.7 337 4,617 7.2% 0.82 351.9 3,599.3 466 4,769 9.1% 0.80 126.0 -188.1 131.8 7.3 122 *1 93.0 3,398.4 112 4,128 2.8% 1.06 89.0 48.2 28.6 3.8 45 Financial accounting basis KPI Adjusted EPS (yen) Adjusted BPS (yen) Adjusted ROE Adjusted PBR Domestic non-life insurance business Business Unit Profits*2 (billions of yen) Domestic life insurance business International insurance business Financial and general businesses Sales of business-related equity holdings (billons of yen) 2007/3E Adjusted number of issued and outstanding shares (thousands of shares) Market capitalization (billions of yen) Share price (yen) Percentage change (Reference) TOPIX Percentage change 2008/3E 802,231 2,960.6 3,680 - 15.6% 1,212.96 - 29.2% 2009/3E 787,562 1,926.8 2,395 - 34.9% 773.66 - 36.2% 2010/3E 787,605 2,118.3 2,633 9.9% 978.81 26.5% 2011/3E 766,820 1,789.3 2,224 - 15.5% 869.38 - 11.2% 2012/3E 766,928 1,827.1 2,271 2.1% 854.35 - 1.7% 2013/3E 767,034 2,039.2 2,650 16.7% 1,034.71 21.1% 2014/3E 767,218 2,383.9 3,098 16.9% 1,202.89 16.3% 2015/3E 754,599 3,438.0 4,538.5 46.5% 1,543.11 28.3% 2015/9E 754,685 2,878.6 3,800 - 16.3% 1,347.20 - 12.7% *3 823,337 3,594.9 *4 4,360 - 6.4% 1,713.61 - 0.8% *1 *2 *3 *4 FY2015: the figure is "Net income attributable to owners of the parent" FY2006-2014 figures are "Adjusted earnings" (Former KPI), domestic life insurance business are presented on an TEV (Traditional Embedded Value) basis All figures exclude the number of treasury shares held from the total number of the shares issued and are shown on a basis after a share-split 1-500 in Sep. 2006 All figures are shown on a basis after a share-split 1-500 in Sep. 2006 Copyright (c) 2016 Tokio Marine Holdings, Inc. 37 Return to Shareholders FY2006 Dividends per share Dividends total 36yen 29.8bn yen FY2007 48yen 38.7bn yen FY2008 48yen 38.0bn yen FY2009 50yen 39.4bn yen FY2010 50yen 38.6bn yen FY2011 50yen 38.3bn yen FY2012 55yen 42.2bn yen FY2013 70yen 53.7bn yen FY2014 FY2015 FY2016 Projections 135yen 101.8bn yen 95yen 110yen (plan) 72.2bn yen 83.0bn yen Share repurchases*1 Total distributions to shareholders 85.0bn yen 90.0bn yen 50.0bn yen 88.0bn yen 39.4bn yen 50.0bn yen 88.6bn yen 38.3bn yen 42.2bn yen - 50.0bn yen 83.0bn yen TBD TBD 114.8bn yen 128.7bn yen 53.7bn yen 122.2bn yen Adjusted net income Average adjusted net income Payout ratio*2 30.7bn yen 163.1bn yen 243.7bn yen 323.3bn yen 351.9bn yen 220.0bn yen 38% 388.0bn yen 290.0bn yen 35% Adjusted net income was adopted as a new KPI in FY2015. (Figures from FY2011 to FY2014 are adjusted net income.) Key Statistics from FY2006 to FY2014 are shown in Reference 2 table. <Refernece1 : Financial accounting basis> Net income (Consolidated) Payout ratio <Refernece2 : Former KPI> Adjusted earnings Adjusted earnings (excluding EV) Average adjusted earnings (excluding EV)*3 Payout ratio*2 169.7bn yen 143.2bn yen - 52.5bn yen 165.4bn yen 121.5bn yen 128.1bn yen 90.0bn yen 100.0bn yen 33% 39% 4.7bn yen 113.4bn yen 80.0bn yen 48% 85.0bn yen 46% 72.0bn yen - 19.5bn yen 209.1bn yen 278.1bn yen 412.0bn yen 44.5bn yen - 35.4bn yen 80.0bn yen 48% 80.0bn yen 48% 98.8bn yen 173.6bn yen 272.2bn yen 85.0bn yen 110.0bn yen 155.0bn yen 50% 49% 47% 93.0bn yen 108.7bn yen 32% 36% 23.1bn yen 128.4bn yen 165% 31% 71.9bn yen 54% 6.0bn yen 129.5bn yen 184.1bn yen 247.4bn yen 639% 33% 29% 29% 254.5bn yen 33% 265.0bn yen 38% *1: On a repurchase year basis. FY2006 figure excludes JPY57.8B of stock exchange between Nisshin Fire *2: Until FY2014: payout ratio to average adjusted earnings (exluding EV) From FY2015: payout ratio to average adjusted net income *3: Excludes effects from the Great East Japan Earthquake and Thai Flood Copyright (c) 2016 Tokio Marine Holdings, Inc. 38 FY2015 Results Overview (Consolidated)  Net Premiums Written (billions of yen, except for %) • FY2014 ■Ordinary income (TMHD Consolidated) Net premiums written (TMHD Consolidated) Life insurance premiums (TMHD Consolidated) FY2015 4,579.0 3,265.5 471.6 385.8 377.2 9.7 29.0 145.7 5.7 - 181.5 254.5 301.6 6.1 14.7 111.5 3.4 - 183.0 YoY Change % Increased both in domestic non-life business and overseas subsidiaries 4,327.9 3,127.6 220.4 358.1 264.0 17.6 251.0 137.9 251.2 27.6 113.1 - 7.9 8.3 - 9.4 - 0.4 - 75.9 7.1 116.2 - 6.4 - 14.0 - 13.0 0.2 - 75.8 + 5.8% + 4.4% + 114.0% + 7.7% + 42.9% - 45.0% + 40.3% - 6.1% - 8.0%  Life Insurance Premiums • Increased due to a steady increase in in-force policies and a decrease in surrender of variable annuities in domestic life business, etc. ■Ordinary profit (TMHD Consolidated) Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.) *1 20.6 155.1 6.2 - 105.6 247.4 185.3 12.5 28.8 124.5 3.2 - 107.1  Ordinary Profit • Domestic Non-Life Underwriting profit decreased despite an increase in net premiums earned due to (i) increase in net incurred losses relating to natural catastrophes, (ii) higher large losses and (iii) increase in net provision for catastrophe loss reserves, etc.. Net investment income and other increased due to an increase in dividends from subsidiaries and an improvement of gains/losses on derivatives, in addition to an increase in gains on sales of securities, etc. ■Net income attributable to owners of the parent*2 Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life*1 Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.) *1 *2 + 2.9% + 62.8% - 51.2% - 48.9% - 10.4% + 6.8% • Domestic Life Increased due to the reversal of contingency reserves associated with surrender of variable annuities, etc. Since Tokio Marine & Nichido Life (TMNL) and Tokio Marine & Nichido Financial Life (FL) merged on October 1st 2014, FY2014 results for TMNL are the sum of the results of the two companies. "Net income attributable to owners of the parent" shows figures for former "Net income" • Overseas Subsidiaries Decreased due to large losses and foreign exchange losses on a local accounting basis, etc. in addition to the appreciation of the yen against emerging market currencies despite a decrease in net incurred losses relating to natural catastrophes 【KPI for the Group Total】 ■Adjusted net income 323.3 351.9 28.6 + 8.8%  Net Income attributable to owners of the parent*2 • Increased due to the factors above  Adjusted Net Income • Copyright (c) 2016 Tokio Marine Holdings, Inc. Adjusted net income which excludes the effect of an increase in net provision for catastrophe loss reserves, etc., increased 39 FY2015 Results Overview (Business Unit Profits) (billions of yen) Business Domain FY2014 Results FY2015 Results YoY Change 3.5 6.3 -3.4 0.7 -355.5 -357.1 -13.7 8.3 -11.4 -0.5 -2.5 1.0 -4.3 -8.8  Domestic Non-Life TMNF: Increased by ¥6.3B YoY to ¥120.0B  Improvement of gains/losses on derivatives Increase in net incurred losses relating to natural catastrophes and large losses  Domestic Non-Life TMNF NF Other Domestic Life*1・2 TMNL International Insurance North America Europe (incl. Middle East) South & Central America Asia Reinsurance International Non-Life International Life Financial & General *3 122.5 113.7 12.2 -3.4 167.4 169.7 145.5 87.2 19.6 5.8 17.3 9.6 138.6 9.4 126.0 120.0 8.8 -2.7 -188.1 -187.4 131.8 95.6 8.1 5.3 14.7 10.6 134.3 0.6  Domestic Life TMNL : Decreased by ¥357.1B YoY to ¥187.4B *   Effects of changes in economic conditions including a decline in interest rates Reversal effect of the decrease in corporate tax rate in FY2014, etc. * Increase in MCEV excluding the effects of changes in economic conditions such as decline in interest rates is ¥115.6B  International Insurance Decreased by ¥13.7B YoY to ¥131.8B    Decrease in net incurred losses relating to natural catastrophes Increase in large losses Increase in foreign exchange losses on local accounting basis 4.0 7.3 3.3 *1: Excluding capital transactions *2: Regarding Domestic Life, because MCEV was adopted, which is effective from FY2015, FY2014 figure is also described based on MCEV *3: International Non-Life figures include some life insurance figures of composite overseas subsidiaries Copyright (c) 2016 Tokio Marine Holdings, Inc. 40 FY2016 Projections Overview (Consolidated)  Net Premiums Written • (billions of yen, except for %) ■Ordinary income (TMHD Consolidated) Net premiums written (TMHD Consolidated) Life insurance premiums (TMHD Consolidated) FY2015 Results 4,579.0 3,265.5 471.6 385.8 377.2 9.7 29.0 145.7 5.7 - 181.5 254.5 301.6 6.1 14.7 111.5 3.4 - 183.0 FY2016 Projections 3,460.0 800.0 380.0 309.0 6.4 22.9 164.1 4.3 - 126.7 265.0 245.0 4.3 15.6 120.7 3.0 - 123.6 YoY Change % Increase mainly due to HCC consolidation despite the appreciation of the yen Increase due to an increase in in-force policies and a decrease in surrender of variable annuities in domestic life business as well as HCC consolidation, etc.  Life Insurance Premiums • 194.4 328.3 - 5.8 - 68.2 - 3.3 - 6.1 18.3 - 1.4 54.8 10.4 - 56.6 - 1.8 0.8 9.1 - 0.4 59.4 + 6.0% + 69.6% - 1.5% - 18.1% - 34.1% - 21.1% + 12.6% - 24.8% ■Ordinary profit (TMHD Consolidated) Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.)  Ordinary Profit • Domestic Non-Life Underwriting profit is projected to increase due to (i) assuming an average level of net incurred losses relating to natural catastrophes and (ii) a lowering of the provision rate for catastrophe loss reserves in auto group at TMNF, etc.. Net investment income and other is projected to decrease due to a decrease in dividends from subsidiaries and the reversal effects of gains on derivatives in FY2015, etc. ■Net income attributable to owners of the parent Tokio Marine & Nichido Nisshin Fire Tokio Marine & Nichido Life Overseas subsidiaries Financial and general Others (Consolidation adjustments, etc.) 【KPI for the Group Total】 + 4.1% - 18.8% - 30.0% + 5.7% + 8.2% - 14.2% • Domestic Life Decrease due to a decrease in amount taken down from contingency reserves associated with maturities of policies at former FL, etc. • Overseas Subsidiaries + 10.3% ■Adjusted net income 351.9 388.0 36.1 Increase due to HCC consolidation and the reversal effect of large losses in FY2015, etc. despite the appreciation of the yen and assuming an average level of natural catastrophe losses which were relatively low in FY2015  Net Income attributable to owners of the parent • Increase due to the factors above and the reversal effect of reduction of deferred tax assets owing to the decrease in corporate tax rate in FY2015, etc. Adjusted net income which excludes the effect of an increase in amortization of goodwill associated with HCC consolidation, etc., 41 is projected to increase  Adjusted Net Income • Copyright (c) 2016 Tokio Marine Holdings, Inc. FY2016 Projections Overview (Business Unit Profits) (billions of yen) Business Domain FY2015 Results FY2016 Projections YoY Change 39.0 38.0 -1.8 1.7 227.1 226.4 27.1 33.3 0.9 -1.3 -4.8 -1.6 26.6 1.3  Domestic Non-Life TMNF: Projected to increase by ¥38B YoY to ¥158B  Decrease in net incurred losses relating to natural catastrophes and large losses  Reversal effect of an improvement of gains/losses on derivatives in FY2015 Domestic Non-Life TMNF NF Other Domestic Life*1 TMNL International Insurance North America Europe South & Central America Asia (incl. Middle East) Reinsurance International Non-Life International Life Financial & General *2 126.0 120.0 8.8 -2.7 -188.1 -187.4 131.8 95.6 8.0 5.3 14.8 10.6 134.3 0.6 165.0 158.0 7.0 -1.0 39.0 39.0 159.0 129.0 9.0 4.0 10.0 9.0 161.0 2.0  Domestic Life TMNL : Projected to increase by ¥226.4B YoY to ¥39B  Reversal effect of changes in economic conditions including a decline in interest rates in FY2015  Steady increase in new policies  International Insurance Projected to increase by ¥27.1B YoY to ¥159B  HCC consolidation  Reversal effect of large losses and foreign exchange losses in FY2015  Assuming an average level of natural catastrophe losses which were relatively low in FY2015 7.3 4.0 -3.3 *1: Excluding capital transactions *2: International Non-Life figures include some life insurance figures of composite overseas subsidiaries Copyright (c) 2016 Tokio Marine Holdings, Inc. 42 Definition of Adjusted Net Income (New from FY2016) / Adjusted Net Assets / Adjusted ROE Definition of Adjusted Net Income / Adjusted Net Assets / Adjusted ROE  Adjusted Net Income*1 Adjusted Net Income = Net income (consolidated)*2 Provision for + catastrophe loss reserves*3 + Provision for contingency reserves*3 + Provision for price fluctuation reserves*3 Gains or losses on sales or valuation of ALM*4 bonds and interest rate swaps Gains or losses on sales or valuation of fixed assets and business investment equities + Amortization of goodwill and other intangible fixed assets Other extraordinary gains/losses, valuation allowances, etc  Adjusted Net Assets*1(average balance basis) Adjusted Net Assets = Net assets (consolidated) + Catastrophe loss reserves + Contingency reserves + Price fluctuation reserves Goodwill and other intangible fixed assets  Adjusted ROE Adjusted ROE = Adjusted Net Income ÷ Adjusted Net Assets *1: Each adjustment is on an after-tax basis *2: Net income is attributable to owners of the parent *3: Reversals are subtracted *4: ALM: Asset Liability Management. Excluded as counter balance items against market value fluctuations of liabilities under ALM Difference Between New Definition and Former Definition “Gains or losses on sales or valuation of business investment equities” is added to the adjusting items for Adjusted Net Income (See bold underline text portion). <Treatment of gains or losses on sales or valuation for the types of equities> Adjusted Net Income (new) Adjusted Net Income (former) (note1) Equities held for the purpose of gains derived from the increase in the market Absolute return investments (note1) Included Included value and/or the dividend income (note2) Domestic equities and other securities held by domestic subsidiaries for the main purpose of strengthening business relationships (note3) Equities and other securities other than Absolute return investments, Business-related equities and Investments in subsidiaries and affiliates (such as equities and other securities substantially equivalent to Investments in subsidiaries and affiliates, but not treated as Investments in subsidiaries and affiliates under the applicable accounting principles) Business-related equities (note2) Included Excluded (excluded as “other extraordinary gains/ losses) Excluded Included Excluded (excluded as “other extraordinary gains/ losses) Included Investments in subsidiaries and affiliates Business investment equities (note3) Copyright (c) 2016 Tokio Marine Holdings, Inc. 43 Reconciliation of Adjusted Net Income / Adjusted Net Assets (billions of yen)  Adjusted Net Income*1 FY2015 Results FY2016 Projections YoY Change  Adjusted Net Assets FY2015 Results FY2016 Projections YoY Change  Adjusted ROE FY2015 Results FY2016 Projections YoY Change Net income attributable to owners of the parent (consolidated)*2 *3 254.5 265.0 10.4 Net assets(consolidated) 3,484.7 3,605.0 120.3 Net income(consolidated) 254.5 265.0 10.4 Provision for catastrophe loss reserves +68.9 +31.0 -37.9 Catastrophe loss reserves +769.1 +806.0 36.9 Net assets(consolidated)*5 FInancial acccounting basis ROE *5 average balance basis 3,531.7 3,545.0 13.3 Provision for contingency reserves *3 -0.2 - 0.2 Contingency reserves +34.2 +34.0 -0.2 7.2% 7.5% + 0.3pt Provision for price fluctuation reserves *3 +3.7 *4 +3.0 -0.7 Price fluctuation reserves +62.8 +67.0 4.2 Gains or losses on sales or valuation of ALM bonds and interest rate swaps -22.6 - 22.6 Goodwill and other intangible fixed assets -751.5 -752.0 -0.5 FY2015 Results FY2016 Projections YoY Change Gains or losses on sales or valuation of fixed assets and business investment equities (FY2015 Results : Gains or losses on sales or valuation of fixed assets) +1.8 -4.0 -5.8 Adjusted Net Assets 3,599.3 3,761.0 161.7 Adjusted Net Income 351.9 388.0 36.1 Amortization of goodwill and other intangible fixed assets Other extraordinary gains/losses, valuation allowances, etc. +34.3 +93.0 58.7 Adjusted Net Assets*5 3,851.4 3,680.0 -171.4 +11.3 - -11.3 Adjusted ROE *5 average balance basis 9.1% 10.5% + 1.4pt Adjusted Net Income *1 *2 *3 *4 351.9 388.0 36.1 Each adjustment is on an after-tax basis "Net income attributable to owners of the parent" shows figures for former "Net income" Reversals are subtracted ALM: Asset Liability management Excluded as counter balance items against market value fluctuations of liabilities under ALM Copyright (c) 2016 Tokio Marine Holdings, Inc. 44 Definition of Business Unit Profits (New from FY2016) Definition of Business Unit Profits  Non-life insurance business Business Unit Profits*1 = Net income Provision for + catastrophe loss reserves*2 + Provision for price fluctuation reserves*2 Gains or losses on sales or valuation of ALM*3 bonds and interest rate swaps Gains or losses on sales or valuation of fixed assets, business related equities and business investment equities *1: Each adjustment is on an after-tax basis Other extraordinary gains/losses, valuation allowances, etc. -  Life insurance business*4 Business Unit Profits*1 Increase in EV*5 = during the current fiscal year + Capital transactions such as capital increase *2: Reversals are subtracted *3: ALM: Asset Liability Management. Excluded as counter balance items against market value fluctuations of liabilities under ALM *4: For life insurance companies in certain regions, Business Unit Profits is calculated by using the definition in Other businesses (head office expenses, etc. are deducted from profits) *5: EV: Embedded Value. An index that shows the net present value of profits to be gained from policies in-force is added to the net asset value  Other businesses Net income determined in accordance with financial accounting principles Difference Between New Definition and Former Definition <Change in the definition of Business Unit Profits for non-life insurance business> Among the adjusting items for Business Unit Profits, “Gains or losses on sales or valuation of equity holdings” is replaced by “Gains or losses on sales or valuation of business-related equities and business investment equities.” (See bold underline text portion). <Treatment of gains or losses on sales or valuation for the types of equities> Business Unit Profits (new) Business Unit Profits (former) Absolute return investments (note1) Included Excluded (note1) Equities held for the purpose of gains derived from the increase in the market value and/or the dividend income (note2) Domestic equities and other securities held by domestic subsidiaries for the Business-related equities (note2) Excluded Excluded (excluded as “other extraordinary gains/ losses) Excluded Excluded Excluded (excluded as “other extraordinary gains/ losses) Excluded main purpose of strengthening business relationships (note3) Equities and other securities other than Absolute return investments, Business-related equities and Investments in subsidiaries and affiliates (such as equities and other securities substantially equivalent to Investments in subsidiaries and affiliates, but not treated as Investments in subsidiaries and affiliates under the applicable accounting principles) Investments in subsidiaries and affiliates Business investment equities (note3) Copyright (c) 2016 Tokio Marine Holdings, Inc. 45 Reconciliation of Business Unit Profits  Domestic Non-Life*1 (TMNF) FY2015 Results (billions of yen) FY2016 Projections YoY Change  International Insurance*1 (billions of yen) FY2015 Results FY2016 Projections Net income for accounting purposes 301.6 245.0 -56.6 Overseas subsidiaries Net income for accounting purposes Difference with EV (Life) Adjustment of non-controlling interests Difference of subsidiaries covered 111.5 -2.0 -2.3 9.5 15.2 131.8 120.7 Provision for catastrophe loss reserves *2 +68.3 +27.0 -41.3 Provision for price fluctuation reserves *2 +3.5 *3 +3.4 -0.1 Gains or losses on sales or valuation of ALM bonds and interest rate swaps Gains or losses on sales or valuation of fixed assets, business related equities and business investment equities (FY2015 Results : Gains or losses on sales or valuation of equity holdings and fixed assets) -21.1 +0.0 21.1 Other adjustments -76.4 -55.0 21.4 *4 Business Unit Profits 159.0 Intra-group dividends -155.7 -62.8 92.9 Other extraordinary gains/losses, valuation allowances, etc -0.2 +0.4 0.6 Business Unit Profits 120.0 158.0 38.0 *1: Each adjustment is on an after-tax basis *2: Reversals are subtracted *3: ALM: Asset Liability Management. Excluded as counter balance items against market value fluctuations of liabilities under ALM *4: Amortization of other intangible fixed assets, head office expenses, etc. Copyright (c) 2016 Tokio Marine Holdings, Inc. 46 Impact of FX rate change on the Group’s Financial Results  Main impact in the event of 1 yen appreciation*1 Impact on P/L 1. Decrease in profit from overseas subsidiaries converted into yen: 2. Change in reserves for foreign currency denominated outstanding claims and derivatives at TMNF: approx. ¥ - 1.0B*2 approx. ¥ + 1.0B*2 *1 Assuming that the FX rate for each currency changes by the same ratio as USD *2 After tax basis  Reference (applied FX rate) Applied FX rate (USD/JPY) FY2014 Results JPY 120.55 (end-Dec.2014) FY2015 Results JPY 120.61 (end-Dec.2015) FY2016 Projections Overseas subsidiaries JPY 112.68 (end-Mar.2016) TMNF JPY 120.17 (end-Mar.2015) JPY 112.68 (end-Mar.2016) Copyright (c) 2016 Tokio Marine Holdings, Inc. 47 Long-term Vision and the Mid-Term Business Plan "To Be a Good Company 2017" Long-term vision A global insurance group that delivers sustainable growth by providing safety and security to customers worldwide - Our timeless endeavor to be a Good Company Aiming for globally competitive-level earnings growth and capital efficiency ~Drive ROE towards double-digit sphere~ Mid-Term Business Plan “To Be a Good Company 2017” ~Evolve business structure to realize sustainable profit growth and higher ROE~ "Innovation and Execution 2014" ~Achieve an ROE exceeding our cost of capital~   Unlocking our potential Capitalizing on changes Pursuing growth opportunities Advancing our business platform Structural reform to profitable business Innovative changes for wellbalanced business portfolio     Profit recovery stage Copyright (c) 2016 Tokio Marine Holdings, Inc. Sustainable profit growth stage 48 Initiatives for “Sustainable Profit Growth”  Enhancement Unlocking our potential  Domestic insurance: Enhancing the integrated business model for life and non-life, strengthening claims-service capabilities, and further utilizing our risk consulting service International insurance: Enhancing organic growth Evolution Capitalizing on changes  Effectively forecasting and proactively meeting the emerging and evolving needs of the market and our customers Strengthening R&D to convert new risks into our business opportunities  Expansion Pursuing growth opportunities  Promoting disciplined business investment to capture growth opportunities globally Enhancing our diversified business portfolio based on risk appetite Advancing ERM and improving risk portfolio to sustainably and comprehensively enhance profit growth, capital efficiency, and financial soundness Strengthening our business platform to further reinforce our globalized business Developing a diverse workforce with a strong customer orientation to drive sustainable growth   Excellence Advancing our business platform   Copyright (c) 2016 Tokio Marine Holdings, Inc. 49 Framework of the Mid-Term Business Plan and Group Management Enhancing Enterprise Risk Management (ERM) to realize sustainable profit growth and higher capital efficiency even in a changing environment, while maintaining financial soundness Generate capital and cash Achieve sustainable profit growth and improve the risk portfolio in each business domain Achieve sustainable profit growth in each business domain  Domestic non-life : Profit growth as the core business of the Group  Domestic life : Profit growth while maintaining financial soundness as a growth driver of the Group  International insurance: Profit growth while globally diversifying risks as a growth driver of the Group Improve the risk portfolio  Reduce the risks associated with business-related equities  Strengthen control of natural catastrophe risks Efficient deployment of capital and cash Invest for growth  Invest in new businesses with high capital efficiency  Invest today to build foundations for our growth tomorrow Enterprise Risk Management (ERM) Return to shareholders  Increase dividends through profit growth  Achieve an appropriate level of capital via flexible repurchases of shares Improve capital efficiency by diversifying our business portfolio Maintain financial soundness Copyright (c) 2016 Tokio Marine Holdings, Inc. + Enhance ROE + Sustainable profit growth 50 Basic Information (Domestic Non-Life 1) - TMNF  Trend of net premiums written and combined ratio C/R(Private Insurance W/P Basis) Net Premiums Written (billions of yen)  Premium composition by Line (FY2015 net premiums written basis) 103.3% 99.4% 97.9% 97.2% 97.4% Marine 91.2% 3.1% 89.8% 89.2% 2,128.3 Others 12.7% CALI 13.3% P.A. 8.2% Fire 14.3% Auto 48.4% 90.9% 92.0% 93.1% 89.8% 1,892.7 1,928.0 1,912.1 1,813.4 1,736.0 1,742.7 1,783.0 1,869.6 1,966.3 2,036.7 2,135.0  Premium composition by sales channel (FY2015 managerial accounting basis) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015  Statistics of combined ratio and loss ratio (private insurance E/I Basis) FY2011 Net E/I C/R* E/I loss ratio Excluding natural catastrophes Expense ratio 103.8% 69.8% 61.3% 34.0% FY2012 99.6% 66.8% 62.8% 32.8% FY2013 97.2% 65.0% 60.1% 32.2% FY2014 90.6% 58.5% 56.9% 32.2% FY2015 92.7% 60.1% 56.0% 32.6% Financial institutions Others 3.5% 14.3% Auto repair shop 2016 8.8% Projections Auto dealership 20.0% Full-time agents 28.3% Corporate 25.1% FY2016 Projections 91.0% 58.3% 55.8% 32.7%  Market share* (FY2014 net premiums written basis) TMNF 25.6% NF 1.7% *: Net E/I C/R=E/I loss ratio + W/P expense ratio Copyright (c) 2016 Tokio Marine Holdings, Inc. *Japanese non-life market (excluding reinsurance companies) 51 Basic Information (Domestic Non-Life 2) - TMNF  Trend of underwriting results in auto insurance (W/P basis combined ratio) <Factors of profitability deterioration>  Increase in senior drivers with high accident frequency  Decrease in per-policy premiums owing to the progress of the average discount rate under the Grade Rating System Increasing trend in unit repair cost <Measures to improve profitability>  Efforts to decrease business expenses such as operational streamlining  Product and rate revisions Introduction of age-bracket rate plans Revision of the Grade Rating System Other measures to improve underwriting result  103.6% 102.9% 103.8% 102.6% 98.5% 94.0%    98.5% 94.9% 96.0% 91.5% 90.1% 89.9% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Projections  Trend of auto insurance policy renewal ratio, combined ratio and loss ratio FY2011 Policy renewal ratio Net E/I C/R* E/I L/R  Rate revisions and profitability improvements per FY (excluding revisions of the Grade Rating System in non-fleet auto insurance) (billions of yen) FY2012 95.3% 100.2% 69.4% FY2013 95.6% 95.7% 65.3% FY2014 95.6% 91.6% 61.1% FY2015 95.7% 91.4% 60.5% FY2016 Projections - 91.8% 60.9% 95.1% 102.9% 70.7% Revision Jan. 2012 Oct. 2012 Oct. 2013 Oct. 2014 Total FY13 7.0 8.0 4.0 19.0 FY14 FY15 FY16 Projections 1.0 26.0 3.0 30.0 4.0 15.0 19.0 3.0 3.0 *: Net E/I C/R =E/I loss ratio + W/P expense ratio Copyright (c) 2016 Tokio Marine Holdings, Inc. 52 Basic Information (Domestic Life) - TMNL  Growing "Medical & Cancer" market 【Composition of number of in-force policies】 (Individual insurance basis, total of Japanese life insurance market)  Growth rate of number of in-force policies at TMNL 【CAGR of in-force policies from FY2000 to FY2014】*1 *1: Total of individual insurance and individual annuities FY2000 20.2% TMNL*2 Average of Japanese life insurance market*3 +13.3% *2: After merger basis FY2014 35.5% 0 Others 50 Medical & Cancer 100 (unit: millions of policy) +2.9% *3 :Source Insurance Statistics (Seiho Toukeigo) (unit: ten thousands of policy) 150 530 500 470 438 349 283 256 317 378 405 Source: The Life Insurance Association of Japan 219 160 134 87 8 1996 187 106 23 1997 41 57 1998 1999 2000 Number of in-force 2015 2014 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 *4 policies at TMNL (total of individual insurance and individual annuities) 2001 *4:Total of TMNL and former FL Through development of product strategies focusing on “life insurance to protect one's living” in response to customer needs, TMNL achieved 5.3 million in-force policies in FY2015, significantly exceeding the market growth Copyright (c) 2016 Tokio Marine Holdings, Inc. 53 Asset Portfolio  Domestic Non-Life (TMNF)  With regard to "long-term insurance liabilities," we aim to maximize the value of surplus by controlling the interest rate risk based on the principle of strict ALM investments  With regard to "Absolute return investment and lending," we work toward diversification of investments with appropriate risk control, in order to maximize net asset value and increase investment income TMNF  Domestic Life (TMNL)  Excluding assets in separate accounts, most assets are assets for backing long-term insurance liabilities. We aim to maximize the value of surplus by controlling the interest rate risk based on the principle of strict ALM investments TMNL Total Total Assets ¥9.6T (as of Mar. 31, 2016) Assets ¥6.9T (as of Mar. 31, 2016) Assets backing long-term insurance liabilities Mainly yen-denominated fixed income assets Appropriately control the yendenominated interest rate risks of longterm insurance liabilities including deposit-type insurance, with yendenominated fixed income assets 28% Absolute return investment and lending 11% (Including short-term investments) Carefully select investment targets from domestic and foreign bonds, etc. and aim for profit contribution Assets backing long-term insurance liabilities Mainly yen-denominated fixed income assets Business-related equities 23% Appropriately control interest rate risks of life insurance liability Continue to reduce holdings Investments in subsidiaries and affiliates 21% 76% Others Assets in separate accounts 14% Former FL Real estate for own use and non-investment assets 17% Others Short-term investments, etc. 10% Copyright (c) 2016 Tokio Marine Holdings, Inc. 54 Basic Information (International Insurance 1) - Net Premiums Written  Net premiums written in international insurance business 1,800 (billions of yen) 1,610.0 1,600 Life 1,400 1,302.6 1,304.0 Reinsurance 1,200 1,074.5 1,000 North America 800 734.3 544.0 319.5 240.2 118.7 413.9 362.6 526.5 600 499.7 Europe*2 South & Central America Asia & Middle East*2 400 200 0 2004 USD/JPY*1 104.2 2005 118.1 2006 119.1 2007 114.1 2008 91.0 2009 92.1 2010 81.4 2011 77.7 2012 86.5 2013 105.3 2014 120.5 2015 120.6 2016 Projections 112.6 *1: FX rates are as of Dec. 31 of each year (FX rate for FY2016 Projections is as of Mar. 31, 2016) *2: Up to FY2015, Middle East is included in Europe. From FY2016, Middle East will be included in Asia Copyright (c) 2016 Tokio Marine Holdings, Inc. 55 Basic Information (International Insurance 2) - Strategic Expansion 2000 2007 2011 2015 Further Growth, Diversification and Capital Efficiency Further Expansion in High Growth Markets Indian Life Business Established Material Presence in Lloyd's (UK) and the US Developed Footholds in Non-Japanese Business (~2000) business development focused on Japanese clients P&C Emerging Markets Life Emerging Markets  Step by step expansion since 2000  International business grew substantially after 2007 due to transformational acquisitions of Kiln, Philadelphia, Delphi, and HCC 56 Copyright (c) 2016 Tokio Marine Holdings, Inc. MEMO Copyright (c) 2016 Tokio Marine Holdings, Inc. MEMO Copyright (c) 2016 Tokio Marine Holdings, Inc. Disclaimer 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. E-mail: URL : www.tokiomarinehd.com Tel : +81-3-3285-0350 201605261700 0:48:34.5 0:49:19.6 0:58:27.6 1:07:03.9 1:08:42.6 1:14:36.4 1:18:05.5 1:23:45.2 1:30:25.1 1:34:43.0 Tsuyoshi Nagano" , "Toshifumi Kitazawa" , "Shinichi Hirose" , "Ichiro Ishii President President Group CEO" , "President of Tokio Marine & Nichido Fire Insurance Co., Ltd." , "President of Tokio Marine & Nichido Life Insurance Co., Ltd." , "Senior Managing Director