Corporate Name MS&AD Insurance Group Holdings, Inc.
Date Established April 1, 2008 (Name changed on April 1, 2010)
Headquarters 27-2, Shinkawa 2-chome, Chuo-ku, Tokyo, Japan
Representative Noriyuki Hara, Representative Director, President & CEO
Paid-in Capital ¥100,808 million (as of March 31, 2023)
Number of Employees
418 (38,584 on a consolidated basis) (as of March 31, 2023)
Business Description
MS&AD Insurance Group Holdings, Inc. Organizational Chart (as of April 1, 2023)
Activities as an insurance holding company are as follows:
1.
Management and administration of non-life insurance companies, life insurance companies, and companies
that it might own as its subsidiaries under the Insurance Business Act, and business incidental thereto;
2. Any business associated with the above under the Insurance Business Act.
Class of Stock Common stock
Total Number of Issued Shares 535,967,347
Total Number of Authorized Shares 900,000,000
Number of Shareholders 82,003
1
Summary of Issued Shares
(as of March 31, 2023)
Shareholder Name Address
Number of
Shares Held
(Thousands)
Percentage of
Shares Issued
(%)
2-11-3, Hamamatsu-cho, Minato-ku, Tokyo
1, Toyota-cho, Toyota City, Aichi Prefecture
1-8-12, Harumi, Chuo-ku, Tokyo
2-2-1 Yaesu, Chuo-ku, Tokyo
1-6-6, Marunouchi, Chiyoda-ku, Tokyo, c/o
Nippon Life Securities Operations Department
JP MORGAN CHASE BANK 380055
(Standing agent: Settlement & Clearing Services Dept.,
Mizuho Bank, Ltd.)
STATE STREET BANK WEST CLIENT - TREATY 505234
(Standing proxy: Settlement & Clearing Services Dept.,
Mizuho Bank, Ltd.)
JP MORGAN CHASE BANK 385781
(Standing proxy: Settlement & Clearing Services Department,
Mizuho Bank, Ltd.)
31st Floor, Roppongi Hills Mori Tower,
6-10-1, Roppongi, Minato-ku, Tokyo
Tokyo Building, 2-7-3 Marunouchi,
Chiyoda-ku, Japan
1776 Heritage Dr., North Quincy, MA 02171, USA
(Shinagawa Intercity Building A,
2-15-1 Konan, Minato-ku, Tokyo)
25 Bank Street, Canary Wharf, London, E14 5JP,
United Kingdom (Shinagawa Intercity Building A,
2-15-1 Konan, Minato-ku, Tokyo)
270 Park Ave., New York, NY 10017, USA
Shinagawa Intercity Building A,
2-15-1 Konan, Minato-ku, Tokyo)
Note: The number of shares is rounded down to the nearest thousand shares. The percentage of shares is rounded to the nearest unit.
The Company owns 267 thousand treasury shares, but these are omitted from the table above.
Total
3
Major Shareholders
78,193
52,610
36,325
28,800
16,494
11,635
9,864
6,455
6,077
6,018
252,474
14.60
9.82
6.78
5.38
3.08
2.17
1.84
1.20
1.13
1.12
47.13
The Master Trust Bank of Japan, Ltd. (Trust account)
Toyota Motor Corporation
Nippon Life Insurance Company
Custody Bank of Japan, Ltd. (Trust account)
JPMorgan Securities Japan Co., Ltd.
Barclays Securities Japan Limited
Sumitomo Life Insurance Company
Stock Listings
Independent Auditor
Tokyo Stock Exchange (Prime Market)
Nagoya Stock Exchange (Premier Market)
KPMG AZSA LLC
Corporate Profile
MS&AD Insurance Group Holdings is an insurance holding company. The Company controls the
entire MS&AD Insurance Group, planning strategies and allocating management resources
across the Group, as well as monitoring and overseeing Group companies. The Company has
thus established a system for Group corporate governance. The Company will be the force to
maximize the total potential of the Group, forming the center of efforts to raise the level of
management control, pursue Group synergies, accelerate decision-making, and develop human
assets through various business frameworks and personnel systems.
Data Section
Stock and Shareholders (as of March 31, 2023)
Breakdown by Sector
Japanese Financial
Institutions
Japanese Securities
Companies
Other Japanese
Companies
Foreign Companies
and Individuals
Japanese Individuals
and Others
Total
Breakdown by Number of Shares Held
1–99 100–999 1,000–9,999 10,000–99,999
100,000 and Above
Total
Number of Shareholders
Percentage of All Shareholders
Breakdown by Region
Hokkaido Tohoku Kanto Chubu Kinki Chugoku Shikoku Kyushu Overseas Total
Number of Shares (Millions) 1.09 2.92 274.99 66.73 16.40 2.10 2.12 2.41 167.16 535.92
Percentage of Shares Issued
0.2% 0.6% 51.3% 12.5% 3.1% 0.4% 0.4% 0.4% 31.2% 100%
2
Shareholding Profile
Number of Shareholders
Number of Shares Held (Millions)
Percentage of Shares Issued
175
187.08
34.9%
57
34.25
6.4%
1,610
88.15
16.4%
962
167.18
31.2%
79,199
59.29
11.1%
82,003
535.96
100%
23,483
28.6%
44,625
54.4%
12,506
15.3%
1,047
1.3%
342
0.4%
82,003
100%
Shareholders Meeting
Office of Audit &
Supervisory Board
Group Management Committee
Internal Audit Dept.
Task-Specific Committee Meetings
Board of Directors
Nomination Committee
Remuneration Committee
Governance Committee
Officers in Charge
Audit & Supervisory Board Members
Audit & Supervisory Board
Corporate Planning Dept.
International Business Planning Dept.
Corporate Sustainability Dept.
Data Management Dept.
Information Technology Planning Dept.
Human Resources and General Administration Dept.
Accounting Dept.
Corporate Communications and Investor Relations Dept.
Compliance Dept.
Corporate Risk Management Dept.
International Supervisory Dept.
Digital Innovation Dept.
Introduction Management’s Message MS&AD’s Value Creation Story Strategy and Performance Leadership and Governance Appendix/Data Section
113
MS&AD INSURANCE GROUP HOLDINGS
114
INTEGRATED REPORT 2023
Date
Issued Shares Paid-in Capital Capital Reserves
Increase/Decrease
Balance
Increase/Decrease
Balance
Increase/Decrease
Balance
¥729,532 million
¥729,790 million
¥730,064 million
¥730,064 million
181 thousand
159 thousand
134 thousand
(57,800) thousand
593,473 thousand
593,632 thousand
593,767 thousand
535,967 thousand
¥100,276 million
¥100,534 million
¥100,808 million
¥100,808 million
¥276 million
¥258 million
¥274 million
¥276 million
¥258 million
¥274 million
Notes:
1. The increase is due to new share issuance to provide restricted stock as stock-based remuneration.
2 The decrease in the total number of issued shares was due to the retirement of treasury shares.
Fiscal Year
April 1 to March 31 of the following year
Annual Shareholders’ Meeting Within three months from the end of each fiscal year
Record Date Ordinary General Meeting of Shareholders: March 31, every year
Year-end dividends: March 31, every year
Interim dividends: September 30, every year
Method of Public Notification Electronic reporting can be found online at
https://www.ms-adhd.com/ja/ir/notification.html (Japanese only)
In the event of an incident or other event that prevents electronic
reporting, the Company will publish its notifications in the Nikkei newspaper.
Stock Exchange Listings Tokyo Stock Exchange (Prime Market), Nagoya Stock Exchange (Premier Market)
Administrator of Shareholders’ Registry Sumitomo Mitsui Trust Bank, Limited
Place of Business of Administrator of
Shareholders’ Registry:
Sumitomo Mitsui Trust Bank, Limited, Stock Transfer Agency Dept.
(1-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan)
Special Account Management Institution: Sumitomo Mitsui Trust Bank, Limited*
(Postal Address) Sumitomo Mitsui Trust Bank, Limited, Stock Transfer Agency Dept.
(2-8-4, Izumi, Suginami-ku, Tokyo 168-0063, Japan)
* Following a share exchange effective April 1, 2010, the Company inherited the responsibility for a special account that was established on the same day for the shareholders of
Aioi and NDI. As a result, the special account management institution for prior shareholders of these two companies will continue to be Mitsubishi UFJ Trust and Banking Corpora-
tion (1-4-5, Marunouchi, Chiyoda-ku, Tokyo).
Telephone Inquiry 0120-782-031
Group Business Schematic (as of March 31, 2023)
4
Changes in Total Number of Issued Shares, Paid-in Capital, and Capital Reserves
5
Basic Information
The primary businesses undertaken by MS&AD Holdings and its Group companies (subsidiaries
and affiliates), and the main Group companies undertaking each business, are listed below.
July 22, 2020*¹
July 27, 2021*¹
July 26, 2022*¹
November 30, 2022*²
Business Overview
MS&AD INSURANCE GROUP HOLDINGS, INC.
International Businesses
MSIG Holdings (U.S.A.), Inc. U.S.A.
Mitsui Sumitomo Insurance USA Inc. U.S.A.
Mitsui Sumitomo Insurance Company of America U.S.A.
MSIG Specialty Insurance USA Inc. U.S.A.
Transverse Insurance Group, LLC U.S.A.
Transverse Specialty Insurance Company U.S.A.
Transverse Insurance Company U.S.A.
TRM Specialty Insurance Company U.S.A.
Mitsui Sumitomo Seguros S/A. BRAZIL
MS Amlin Corporate Member Limited U.K.
MS Amlin Underwriting Limited U.K.
MSI Corporate Capital Limited U.K.
Mitsui Sumitomo Insurance Company (Europe), Limited U.K.
MS Amlin AG SWITZERLAND
MSIG Insurance Europe AG GERMANY
MS Amlin Insurance SE BELGIUM
MSIG Insurance (Singapore) Pte. Ltd. SINGAPORE
MS First Capital Insurance Limited SINGAPORE
MSIG Mingtai Insurance Co.,Ltd. TAIWAN
MSIG Insurance (Hong Kong) Limited HONG KONG
Mitsui Sumitomo Insurance (China) Company Limited CHINA
MSIG Insurance (Vietnam) Company Limited VIETNAM
Cholamandalam MS General Insurance Company Limited INDIA
Max Financial Services Limited INDIA
Max Life Insurance Company Limited INDIA
PT. Asuransi Jiwa Sinarmas MSIG Tbk INDONESIA
PT. Asuransi MSIG Indonesia INDONESIA
Ceylinco Insurance PLC SRI LANKA
MSIG Insurance (Thailand) Public Company Limited THAILAND
BPI/MS Insurance Corporation PHILIPPINES
MSIG Insurance (Malaysia) Bhd. MALAYSIA
Hong Leong Assurance Berhad MALAYSIA
MSIG Insurance (Lao) Co., Ltd. LAOS
Financial Services Business and Risk-Related Services Business
MITSUI SUMITOMO INSURANCE Venture Capital Co., Ltd. Japan
Sumitomo Mitsui DS Asset Management Company, Limited Japan
Leadenhall Capital Partners LLP U.K.
MS Financial Reinsurance Limited BERMUDA
Notes: 1. The primary consolidated subsidiaries and other entities in each business are listed.
2. The symbols indicate the following: : Consolidated subsidiary : Equity-method affiliate
AIOI NISSAY DOWA INSURANCE COMPANY, LIMITED (Mainly the Domestic Non-Life Insurance Business)
MITSUI SUMITOMO AIOI LIFE INSURANCE COMPANY, LIMITED
MITSUI SUMITOMO PRIMARY LIFE INSURANCE COMPANY, LIMITED
International Businesses
Challenger Limited AUSTRALIA
BOCOM MSIG Life Insurance Company Limited CHINA
Financial Services Business and Risk-Related Services Business
MS&AD InterRisk Research & Consulting, Inc.
MITSUI DIRECT GENERAL INSURANCE COMPANY, LIMITED (Domestic Non-Life Insurance Business)
Domestic Non-Life Insurance Business
Little Family SS Insurance Co., Ltd.
International Businesses
DTRIC Insurance Company, Limited U.S.A.
DTRIC Insurance Underwriters, Limited U.S.A.
Aioi Nissay Dowa Europe Limited U.K.
Aioi Nissay Dowa Insurance UK Limited U.K.
Aioi Nissay Dowa Life Insurance of Europe AG GERMANY
Aioi Nissay Dowa Insurance Company of Europe SE LUXEMBOURG
Aioi Nissay Dowa Insurance Company Australia Pty Ltd AUSTRALIA
Aioi Nissay Dowa Insurance (China) Company Limited CHINA
MITSUI SUMITOMO INSURANCE COMPANY, LTD. (Mainly the Domestic Non-Life Insurance Business)
Introduction Management’s Message MS&AD’s Value Creation Story Strategy and Performance Leadership and Governance Appendix/Data Section
115
MS&AD INSURANCE GROUP HOLDINGS
116
INTEGRATED REPORT 2023
Main Subsidiaries
1. CONSOLIDATED SUBSIDIARIES
Name of Company Location
Date of
Incorporation
Principal
Business
Paid-in Capital
Voting Rights
of MS&AD
Holdings (%)
Voting Rights of
Subsidiaries
(%)
Name of Company Location
Date of
Incorporation
Principal
Business
Voting Rights
of MS&AD
Holdings (%)
Voting Rights of
Subsidiaries
(%)
Name of Company Location
Date of
Incorporation
Principal
Business
Paid-in Capital
Voting Rights
of MS&AD
Holdings (%)
Voting Rights of
Subsidiaries
(%)
Aioi Nissay Dowa Life
Insurance of Europe AG
MSIG Insurance Europe AG
MS Amlin AG
Leadenhall Capital Partners LLP
Mitsui Sumitomo Insurance
Company (Europe), Limited
MSI Corporate
Capital Limited
MS Amlin
Underwriting Limited
MS Amlin Corporate
Member Limited
Aioi Nissay Dowa Insurance
UK Limited
Aioi Nissay Dowa
Europe Limited
Mitsui Sumitomo Seguros S/A.
DTRIC Insurance
Underwriters, Limited
DTRIC Insurance
Company, Limited
TRM Specialty
Insurance Company
Transverse
Insurance Company
Transverse Specialty
Insurance Company
Transverse Insurance Group, LLC
MSIG Specialty Insurance USA Inc.
Mitsui Sumitomo Insurance
Company of America
Mitsui Sumitomo Insurance USA Inc.
MSIG Holdings (U.S.A.), Inc.
MS&AD InterRisk Research
Institute & Consulting, Inc.
Mitsui Sumitomo Insurance Venture
Capital Co., Ltd.
Little Family SS Insurance Co., Ltd.
Mitsui Sumitomo Primary Life
Insurance Co., Ltd.
Mitsui Sumitomo Aioi Life
Insurance Co., Ltd.
Mitsui Direct General
Insurance Co., Ltd.
Aioi Nissay Dowa Insurance Co., Ltd.
Mitsui Sumitomo Insurance Co., Ltd.
Chiyoda-ku,
Tokyo
Shibuya-ku,
Tokyo
Bunkyo-ku,
Tokyo
Chuo-ku,
Tokyo
Chuo-ku,
Tokyo
Shinagawa-ku,
Tokyo
Chuo-ku,
Tokyo
Chiyoda-ku,
Tokyo
New York,
U.S.A.
New York,
U.S.A.
New York,
U.S.A.
New York,
U.S.A.
Delaware,
U.S.A.
Dallas,
U.S.A.
Dallas,
U.S.A.
Dallas,
U.S.A.
Honolulu,
U.S.A.
Honolulu,
U.S.A.
São Paulo,
Brazil
London,
U.K.
London,
U.K.
London,
U.K.
London,
U.K.
London,
U.K.
London,
U.K.
London,
U.K.
Zurich,
Switzerland
Cologne,
Germany
Ismaning,
Germany
Dec. 8, 2005
April 20, 2012
Aug. 19, 2010
April 30, 2008
July 28, 1972
Jan. 7, 2000
Nov. 29, 1988
Sept. 19, 1994
Dec. 11, 2017
Nov. 8, 2017
Dec. 15, 1965
Feb. 2, 2007
Dec. 12, 1978
Nov. 5, 1987
March 14, 1961
Nov. 18, 1982
June 26, 2018
Jan. 11, 1994
March 29, 2001
Jan. 28, 1988
Oct. 21, 1988
Jan. 4, 1993
Dec. 6, 1990
Aug. 1, 2019
Sept. 7, 2001
Aug. 8, 1996
June 3, 1999
June 30, 1918
Oct. 21, 1918
International
International
International
Financial
Services
International
International
International
International
International
International
International
International
International
International
International
International
International
International
International
International
International
Risk-Related
Services
Financial Services
Business
Domestic Non-
Life Insurance
Domestic
Life Insurance
Domestic
Life Insurance
Domestic Non-
Life Insurance
Domestic Non-
Life Insurance
Domestic Non-
Life Insurance
US$2,500
thousand
US$4,500
thousand
US$2,500
thousand
US$4,200
thousand
US$5,000
thousand
US$107,695
thousand
US$5,000
thousand
US$5,000
thousand
US$5,000
thousand
US$1,362 million
¥330 million
¥1 billion
¥75 million
¥41,060 million
¥85,500 million
¥39,106 million
¥100,005 million
¥139,595 million
BRL619,756
thousand
UK£350,010
thousand
UK£135,100
thousand
UK£1,700
thousand
UK£400
thousand
UK£5,200
thousand
UK£80,700
thousand
US$2,850
thousand
CHF10,000
thousand
184,000
thousand
5,000
thousand
-
-
-
-
-
97.3%
100.0
-
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
80.0
100.0
100.0
100.0
Note: Figures in brackets [ ] represent the percentage of voting rights belonging to closely allied entities or entities that are in agreement with MS&AD on voting issues.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100.0%
100.0
100.0
100.0
100.0
-
-
100.0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Hamilton,
Bermuda
Brussels,
Belgium
Senningerberg,
Luxembourg
Singapore,
Singapore
Singapore,
Singapore
Melbourne,
Australia
Taipei,
Taiwan
Hong Kong,
P.R.C.
Tianjin,
P.R.C
Shanghai,
P.R.C.
Hanoi,
Vietnam
Jakarta,
Indonesia
Jakarta,
Indonesia
Bangkok,
Thailand
Kuala Lumpur,
Malaysia
Vientiane,
Laos
Nov. 21, 2011
Jan. 4, 2016
Nov. 12, 2004
Sept. 23, 2004
Dec. 9, 1950
Aug. 1, 2008
Sept. 22, 1961
Sept. 8, 2004
Jan. 23, 2009
Sept. 6, 2007
Feb. 2, 2009
July 17, 1984
Dec. 17, 1975
April 14, 1983
April 28, 1979
Sept. 18, 2009
Financial Services
International
International
International
International
International
International
International
International
International
International
International
International
International
International
International
¥46 million
140,000
thousand
41,875
thousand
S$333,442
thousand
S$26,500
thousand
A$87,800
thousand
NT$2,535
million
HK$1,625
million
RMB1,000
million
RMB500,000
thousand
VND300,000
million
IDR210,000
million
IDR100,000
million
THB142,666
thousand
MYR1,511
million
US$2,000
thousand
MS Financial Reinsurance Limited
MS Amlin Insurance SE
Aioi Nissay Dowa Insurance Company
of Europe SE
MSIG Insurance (Singapore) Pte. Ltd.
MS First Capital Insurance Limited
Aioi Nissay Dowa Insurance Company
Australia Pty Ltd
MSIG Mingtai Insurance Co., Ltd.
MSIG Insurance (Hong Kong) Limited
Aioi Nissay Dowa Insurance (China)
Company Limited
Mitsui Sumitomo Insurance (China)
Company Limited
MSIG InsuranceVietnam Company
Limited
PT. Asuransi Jiwa Sinarmas MSIG Tbk
PT. Asuransi MSIG Indonesia
MSIG Insurance (Thailand) Public
Company Limited
MSIG Insurance (Malaysia) Bhd.
MSIG Insurance (Lao) Co., Ltd.
56 other companies
2. EQUITY-METHOD AFFILIATES
au Insurance Company, Limited
Sumitomo Mitsui DS Asset
Management Company, Limited
Challenger Limited
BoCommLife Insurance
Company Limited
Cholamandalam MS General Insurance
Company Limited
Max Financial Services Limited
Max Life Insurance Company Limited
Ceylinco Insurance PLC
BPI/MS Insurance Corporation
Hong Leong Assurance Berhad
Two other companies
Kuala Lumpur,
Malaysia
Makati,
Philippines
Colombo,
Sri Lanka
Chandigarh,
India
Nawanshahr,
India
Chennai,
India
Shanghai,
P.R.C.
Sydney,
Australia
Minato-ku,
Tokyo
Minato-ku,
Tokyo
Feb. 23, 2010
July 15, 1985
Sept. 13, 1985
July 4, 2000
Nov. 2, 2001
Feb. 24, 1988
July 11, 2000
Feb. 11, 1987
Oct. 1, 1965
Dec. 20, 1982
Domestic Non-
Life Insurance
Financial
Services
International
International
International
International
International
International
International
International
¥3,150 million
¥2,000 million
A$2,513
million
RMB5,100
million
INR2,988
million
INR690,065
thousand
INR19,188
million
LKR1,324
million
PHP350,000
thousand
MYR200,000
thousand
-
-
15.2%
37.5
-
-
-
-
-
-
100.0%
100.0
100.0
100.0
97.7
100.0
100.0
100.0
100.0
100.0
100.0
80.0
80.0
86.4
65.4
1.4
51.0
49.0%
15.0
-
-
40.0
21.9
[87.0]
15.0
48.5
30.0
Paid-in Capital
Introduction Management’s Message MS&AD’s Value Creation Story Strategy and Performance Leadership and Governance Appendix/Data Section
117
MS&AD INSURANCE GROUP HOLDINGS
118
INTEGRATED REPORT 2023
History of the MS&AD Insurance Group
Founded in
1918
In 1918, this company was established as Taisho Marine & Fire Insurance Co., Ltd., with the support of a
wide range of companies from many industries centered on Mitsui & Co., Ltd. Besides beginning direct
underwriting operations in Thailand in 1934 and undertaking other moves to expand its overseas sales
systems from an early stage, the company initiated fund procurement through the issuance of depositary
receipts in London from 1964 and otherwise responded to the era of internationalization. It merged with
Shin Nippon Fire in 1941 and with Mitsui Fire in 1944. In 1991, it changed its name to Mitsui Marine & Fire.
Mitsui
Marine & Fire
Insurance Co., Ltd.
Founded in
1893
Sumitomo
Marine & Fire
Insurance Co., Ltd.
Founded in
1918
Dai-Tokyo
Fire & Marine
Insurance Co., Ltd.
Founded in
1897
Chiyoda
Fire & Marine
Insurance Co., Ltd.
Founded in
1897
Established in
1996
Dowa
Fire & Marine
Insurance Co., Ltd.
Nissay General
Insurance Co., Ltd.
Business
started in
2000
Mitsui Direct General
Insurance Co., Ltd.
Established in
1996
Mitsui Mirai Life
Insurance Co., Ltd.
Merged in 2001
Merged in 2001
Merged in 2001
Mitsui Sumitomo
Insurance Co., Ltd.
Established in 2008
Mitsui Sumitomo Insurance
Group Holdings (MSIGHD)
Merged in 2001
Aioi Life Insurance
Co., Ltd.
Business started in 2002
Mitsui Sumitomo
CitiInsurance Life
Insurance Co., Ltd.
Company name changed in 2005
Mitsui Sumitomo
MetLife Insurance
Co., Ltd.
Established in
1996
Sumitomo Marine Yu-Yu Life
Insurance Co., Ltd.
Established in
1996
Dai-Tokyo Shiawase Life
Insurance Co., Ltd.
Established in
1996
Chiyoda Kasai Ebisu Life
Insurance Co., Ltd.
Note: Because the 1996 Revision of the Insurance Business Act removed the
prohibition of life and non-life insurance companies moves to enter each
other’s insurance sector through subsidiaries, Mitsui Marine & Fire,
Sumitomo Marine & Fire, Dai-Tokyo Fire & Marine, and Chiyoda Fire &
Marine each established a life insurance subsidiary and began engaging
in the life insurance business.
Mitsui Sumitomo Insurance Co., Ltd., Mitsui
Sumitomo Kirameki Life Insurance Co., Ltd.,
Mitsui Sumitomo MetLife Insurance Co., Ltd.,
and Mitsui Direct General Insurance Co., Ltd.,
became subsidiaries of MSIGHD.
Major events in the insurance industry
1998 Abolition of obligation for members to use
the premium rates calculated by the Rating
Organization (Transitional Measures: 2 years)
Introduction of an insurance holding company system
1997
Approval of risk-subdivision-type automobile insurance
2001
Ban on OTC bank
sales of insurance
partially lifted
2007
Implementation of Financial
Instruments and Exchange Act
OTC bank sales of insurance fully
liberalized
2006
Review of the policyholder
protection system
Introduction of a small-amount,
short-term insurance system
2010
Implementation of
the Insurance Act
Mutual entry into non-life and life insurance
business by subsidiaries
Reform of Insurance Rating Organization system
Introduction of products and premium rates
notication system
1996 1997 1998 1999 2000 2001 2002 2006 2023
2012 Review, etc., of
regulations relating
to the transfer of
insurance contracts
2016
Establishment of basic rules for
insurance soliciting
Development, etc., of regulations relating
to insurance solicitation
2021
Digitization of ancillary
operations and addition of
operations that contribute to
regional revitalization, etc.
20162012
2013 Introduction of an insurance
soliciting subcontracting system
201320102009
Start of Japan’s
Big Bang (financial
system reform)
Development of
original products
Deregulation of
premium rate
Strengthening
corporate governance
Digital innovation
Second industry realignment,
Strengthening of policyholder
protection/deregulation
End of Japan’s Financial
Big Bang, First industry
realignment
History of the MS&AD Insurance Group in Japan
Merged in 2001
Mitsui Sumitomo Kirameki
Life Insurance Co., Ltd.
Sumitomo Mitsui DS
Asset Management
Company, Limited
established
Sumitomo Mitsui DS
Asset Management
Company, Limited
established
2019
Little Family SS Insurance
Co., Ltd., established
Little Family SS Insurance
Co., Ltd., established
2019
MS&AD GRAND ASSISTANCE
Co., Ltd., established
MS&AD GRAND ASSISTANCE
Co., Ltd., established
2020
Mitsui Direct
General Insurance
Co., Ltd., becomes a
wholly owned
subsidiary
Mitsui Direct
General Insurance
Co., Ltd., becomes a
wholly owned
subsidiary
2022
au Insurance Company, Limited,
established
au Insurance Company, Limited,
established
2011
Mitsui Sumitomo
Insurance Co., Ltd.
Merged in 2010
Aioi Nissay Dowa
Insurance Co., Ltd.
Company name
changed in 2010
MS&AD Insurance
Group Holdings, Inc.
Mitsui Direct General
Insurance Co., Ltd.
Inaugurated in 2011
Mitsui Sumitomo
Aioi Life
Insurance Co., Ltd.
Company name
changed in 2011
Mitsui Sumitomo
Primary Life
Insurance Co., Ltd.
2010 Establishment of the
MS&AD Insurance Group
Diversification of
insurance products
1996 Revision of the
Insurance Business Act
This company was established as Osaka-based Osaka Insurance in 1893 by interests related to the copper
and trading industries. Another predecessor company, Tokyo-based Fuso Marine, was established in 1917. Its
management was later transferred to Sumitomo, and it was renamed Sumitomo Marine. Osaka Insurance and
Sumitomo Marine merged in 1944, creating Osaka Sumitomo Marine. In 1954, the company’s head office
was moved to Tokyo, and the company’s name was changed to Sumitomo Marine. In response to Japanese
companies’ moves to establish overseas operations, it progressively built up an overseas sales system.
Established in 1918 as Tokyo Dosan Fire, which was engaged in the basic fire insurance business, this
company merged with Toshin Fire, which was engaged in the general fire insurance business, in 1944 to
create Dai Tokyo Fire. From the early 1960s, Dai Tokyo Fire proactively worked to expand its automobile
insurance business. It built one of the industry’s top claims handling systems in automobile insurance and
organized a network of car repair and maintenance shops, thereby earning the epithet “Dai Tokyo of car
repair and maintenance agencies.”
Established in 1897 as Otaru Cargo Fire, this company merged with Okura Fire of the Okura zaibatsu in
1944. In 1945, it merged with the former Chiyoda Fire, which was established as a sister company of
Chiyoda Life, and it changed its name to Chiyoda Fire in 1946. After the war, Chiyoda Fire cooperated
with Tokai Bank and built strong ties with the financial industry in the greater Nagoya region. After building
ties with Toyota Motor Sales Co., Ltd., it developed as a company with particularly strong operations in
automobile insurance.
Established in 1897 as Yokohama Fire, it merged with four companies based in the Kansai region—Kobe
Marine, Kyodo Fire, and Asahi Marine—in 1944 to create Dowa Fire. After the war, it redeveloped aviation
insurance and developed satellite insurance products, earning a reputation as being particularly strong in
the aerospace field, and it maintained one of the industry’s top levels of financial soundness.
Nissay Dowa General
Insurance Co., Ltd.
Aioi Insurance
Co., Ltd.
Introduction Management’s Message MS&AD’s Value Creation Story Strategy and Performance Leadership and Governance Appendix/Data Section
119
MS&AD INSURANCE GROUP HOLDINGS
120
INTEGRATED REPORT 2023
HanoiHanoi
Vientiane
Vientiane
New Delhi
New Delhi
Uttar Pradesh
Uttar Pradesh
Gurugram
Gurugram
MoscowMoscow
Almaty
Almaty
Abu Dhabi
Abu Dhabi
Dubai
Dubai
Yangon
Yangon
Bangkok
Bangkok
Chennai
Chennai
Colombo
Colombo
Mumbai
Mumbai
Bangalore
Bangalore
Johannesburg
Johannesburg
Ho Chi Minh
Ho Chi Minh
Phnom Penh
Phnom Penh
Manila
Manila
Guam
Guam
Saipan
Saipan
Guangzhou
Guangzhou
Hong Kong
Hong Kong
Taipei
Taipei
Wuxi
Wuxi
Suzhou
Suzhou
Hangzhou
Hangzhou
Shanghai
Shanghai
Shenzhen
Shenzhen
Macau
Macau
Labuan
Labuan
Bandar Seri Begawan
Bandar Seri Begawan
Kuala Lumpur
Kuala Lumpur
Petaling Jaya
Petaling Jaya
Singapore
Singapore
Sydney
Sydney
Melbourne
Melbourne
Auckland
Auckland
LondonLondon
Paris
Paris
Amstelveen
Amstelveen
Gibraltar
Gibraltar
Madrid
Madrid
Derby
Derby
Cologne
Cologne
Senningerberg
Senningerberg
Copenhagen
Copenhagen
Warsaw
Warsaw
Amsterdam
Amsterdam
Oslo
Oslo
Saint Petersburg
Saint Petersburg
Brussels
Brussels
Ismaning
Ismaning
Zurich
Zurich
Bratislava
Bratislava
ViennaVienna
Milan
Milan
Rome
Rome
New YorkNew York
Toronto
Toronto
Trenton
Trenton
Cincinnati
Cincinnati
Atlanta
Atlanta
Miami
Miami
Panama City
Panama City
Dallas
Dallas
Mexico City
Mexico City
Queretaro
Queretaro
Los AngelesLos Angeles
Irapuato
Irapuato
São PauloSão Paulo
Bogota
Bogota
LimaLima
Buenos Aires
Buenos Aires
Honolulu
Honolulu
WarrenWarren
Detroit
Detroit
Chicago
Chicago
Plano
Plano
Hamilton
Hamilton
2020
2018
2017
2012
2011
2011
2010
Invested in BoCommLife (China)
Invested in ReAssure (U.K.)
Invested in Challenger Limited (Australia)
Invested in Max Life Insurance Company Limited (India)
Invested in PT. Asuransi Jiwa Sinarmas MSIG (Indonesia)
Invested in Hong Leong MSIG Takaful Berhad (Malaysia)
Invested in Hong Leong Assurance Berhad (Malaysia)
Expansion of the Non-Life
Insurance Business
Expansion of Life
Insurance Business
2023
2017
2016
2015
2005
2004
Acquired U.S.-based Transverse Insurance Group
Acquired First Capital (Singapore)
Acquired U.K.-based Amlin
Acquired U.K.-based Box Innovation Group
Acquired Taiwan-based Mingtai
Acquired the Asian non-life insurance
business of U.K.-based AVIVA
2019
2015
2012
2000
2000
Invested in IKBZ Insurance (Myanmar)
Invested in Ceylinco Insurance (Sri Lanka)
Established a company in Germany
Began Toyota Retail Business in Germany and France
Became the first Japanese non-life insurance company
to establish a Lloyd’s syndicate
Developing Business in Major Countries/Regions
JakartaJakarta
1924 1934 1956 1957 1958 1962 1966 1969 1970 1974 1977 1978 1997 1999 2001 2003 2005 2010
U.K.
(Office)*
Thailand U.K.
U.S./
Hong Kong
Singapore/
Germany
Malaysia Australia Indonesia
New
Zealand
Brazil Philippines France Vietnam Taiwan
China
(Shanghai)
India Cambodia Laos
2015
Myanmar/
South Africa
(Office)
*
SeoulSeoul
Beijing
Beijing
Tianjin
Tianjin
Overseas branches and offices
Overseas subsidiaries
and affiliates
Branches and offices
of overseas subsidiaries and affiliates
Underwriting agents for the Head Office and others
Branches Offices
Items not marked with * indicate the year in which a direct insurance license was acquired.
DoverDover
Business expansion through M&A
Expansion and diversification of
international life insurance business
Business initiations through
capital investments in local markets
Group Network and History of International Business (as of July 1, 2023)
Introduction Management’s Message MS&AD’s Value Creation Story Strategy and Performance Leadership and Governance Appendix/Data Section
121
MS&AD INSURANCE GROUP HOLDINGS
122
INTEGRATED REPORT 2023
: Overseas Branches : Overseas Offices : Major Subsidiaries and Associates
: Branches or Offices of Major Subsidiaries and Associates: Underwriting Agents for the Head Office
Global Network (as of July 1, 2023)
THE AMERICAS
New York Representative Office
MSIG Holdings (U.S.A.), Inc.
Mitsui Sumitomo Insurance Company of America
Mitsui Sumitomo Insurance USA Inc.
Mitsui Sumitomo Marine Management (U.S.A.), Inc.
New York Office
Warren Office
Los Angeles Office
Cincinnati Office
Atlanta Office
Chicago Office
Detroit Office
Dallas Office
Seven Hills Insurance Agency, LLC
MSIG Specialty Insurance USA Inc.
MSIG Insurance Services, Inc.
MS Distribution Holdings Inc.
Transverse Insurance Group, LLC
Transverse Specialty Insurance Company
Transverse Insurance Company
TRM Specialty Insurance Company
MSI GuaranteedWeather, LLC
Vortex Insurance Agency, LLC
MSR Capital Partners, LLC
New York Representative Office
Honolulu Representative Office
Aioi Nissay Dowa Insurance Services USA Corporation
MOTER Technologies, Inc.
Toyota Insurance Management Solutions USA, LLC
Advanced Connectivity, LLC
Connected Analytic Services, LLC
DTRIC Insurance Company, Limited
DTRIC Insurance Underwriters, Limited
DTRIC Management Company, Limited
U.S.A.
MSI
ADI
Ceylinco Insurance PLC
Aioi Nissay Dowa Management New Zealand Limited
New Zealand Branch
New Zealand Branch
Aioi Nissay Dowa Insurance Company Australia Pty Ltd
Melbourne Representative Office
Sydney Representative Office
Australian Branch
Oceania Branch Melbourne Office
Oceania Branch
Challenger Limited
MSIG Sokxay Insurance Co., Ltd.
Asia Insurance (Cambodia) Plc.
Yangon Representative Office
Max Life Insurance Company Limited
Max Financial Services Limited
Cholamandalam MS Risk Services Limited
Cholamandalam MS General Insurance Company Limited
INDIA
MSI
MYANMAR
CAMBODIA
LAO PEOPLE’S
DEMOCRATIC
REPUBLIC
AUSTRALIA
NEW ZEALAND
SRI LANKA
MSI
MSI
MSI
MSI
MS&AD
Holdings
MSI
ADI
ADI
MSI
ASIA AND OCEANIA
SINGAPORE
THAILAND
MALAYSIA
PHILIPPINES
INDONESIA
REPUBLIC OF KOREA
PEOPLE’S
REPUBLIC
OF CHINA
HONG KONG
MACAU
MS&AD
Holdings
MS&AD
Holdings
MS&AD
Holdings
MSI
MSI
MSI
ADI
MSI
MSI
ADI
ADI
ADI
MSI
MSI
MSI
MSI
Interisk Asia Pte Ltd
MSIG Asia Pte. Ltd.
MSIG Insurance (Singapore) Pte. Ltd.
MS First Capital Insurance Limited
Aioi Nissay Dowa Services Asia Pte. Ltd.
InterRisk Asia (Thailand) Co., Ltd.
Thailand Branch
MSIG Insurance (Thailand) Public Company Limited
MSI Holding (Thailand) Company Limited
MSIG Service and Adjusting (Thailand) Company Limited
Calm Sea Service Company Limited
MBTS Broking Services Company Limited
Ueang Mai Co., Ltd.
Yardhimar Company Limited
Bangkok Representative Office
Aioi Bangkok Insurance Public Company Limited
Bangkok Chayoratn Company, Limited
Bangkok Chayolife Company, Limited
MSIG Insurance (Malaysia) Bhd.
MSIG Berhad
Hong Leong Assurance Berhad
Hong Leong MSIG Takaful Berhad
BPI/MS Insurance Corporation
PT. Asuransi MSIG Indonesia
PT. Asuransi Jiwa Sinarmas MSIG Tbk.
Korea Branch
InterRisk Consulting (Shanghai) Co., Ltd.
BOCOM MSIG Life Insurance Company Limited
Mitsui Sumitomo Insurance (China) Company Limited
Guangdong Branch Shenzhen Marketing Service Department
Beijing Branch
Jiangsu Branch Suzhou Marketing Service Department
Shanghai Marketing Division
Beijing Representative Office
MSIG Management (Shanghai) Co. Ltd
China General Representative Office
Guangzhou Representative Office
Aioi Nissay Dowa Insurance (China) Company Limited
Aioi Nissay Dowa Insurance (China) Company Limited Zhejiang Branch
Guang Ai Insurance Brokers Ltd.
MSIG Insurance (Hong Kong) Limited
Hong Kong Representative Office
MSIG Insurance (Hong Kong) Limited Macau Branch
MSIG Mingtai Insurance Co., Ltd.
Taipei Representative Office
MSIG Insurance (Vietnam) Company Limited
MSIG Insurance (Vietnam) Company Limited, Ho Chi Minh City Branch
VIETNAM
TAIWAN
MSI
MSI
ADI
Introduction Management’s Message MS&AD’s Value Creation Story Strategy and Performance Leadership and Governance Appendix/Data Section
123
MS&AD INSURANCE GROUP HOLDINGS
124
INTEGRATED REPORT 2023
Toyota Insurance Management SE Austrian Branch
MSIG Insurance Europe AG The Netherlands Branch
MSIG Insurance Europe AG France Branch
Paris Representative Office
Aioi Nissay Dowa Insurance Company of Europe SE French Branch
Toyota Insurance Management SE French Branch
MS Amlin Insurance SE
MSIG Insurance Europe AG Belgium Branch
MSIG Corporate Services (Europe) Limited Belgium Branch
Brussels Representative Office
Aioi Nissay Dowa Insurance Company of Europe SE Belgian Branch
Toyota Insurance Management SE Belgian Branch
Aioi Nissay Dowa Insurance Company of Europe SE
MS Amlin AG
MSIG Insurance Europe AG Spain Branch
Aioi Nissay Dowa Insurance Company of Europe SE Spanish Branch
Toyota Insurance Management SE Spanish Branch
MSIG Insurance Europe AG Italy Branch
Aioi Nissay Dowa Insurance Company of Europe SE Italian Branch
Toyota Insurance Management SE Italian Branch
MSIG Insurance Europe AG Slovakia Branch
Moscow Representative Office
St. Petersburg Representative Office
Moscow Representative Office
LLC Toyota Insurance Management (Insurance Brokers)
LLC Toyota Insurance Management (Insurance Agency)
Toyota Insurance Management SE Norwegian Branch
UAE Branch(Dubai)
UAE Branch(Abu Dhabi)
Mitsui Sumitomo Insurance Company (Europe), Limited Johannesburg Representative Office
Toyota Insurance Management South Africa Proprietary Limited
Toyota Insurance Management (Insurance Broker) LLP
Autosan Kazakhstan LLP
Toyota Insurance Management SE Danish Branch
Toyota Insurance Management SE Polish Branch
MSI
MSI
MSI
MSI
MSI
ADI
ADI
ADI
ADI
ADI
MSI
ADI
MSI
MSI
ADI
ADI
ADI
ADI
ADI
ADI
MSI
MSI
SPAIN
SWITZERLAND
BELGIUM
LUXEMBOURG
FRANCE
NETHERLANDS
AUSTRIA
ITALY
SLOVAKIA
RUSSIA
NORWAY
UNITED ARAB
EMIRATES
REPUBLIC OF
SOUTH AFRICA
KAZAKHSTAN
DENMARK
POLAND
EUROPE, THE MIDDLE EAST, AND AFRICA
London Representative Office
MS Amlin Corporate Services Limited
MS Amlin Underwriting Limited
MS Amlin Corporate Member Limited
MS Amlin Investment Management Limited
Mitsui Sumitomo Insurance Company (Europe), Limited
Mitsui Sumitomo Insurance Company (Europe), Limited Derby Office
MSIG Corporate Services (Europe) Limited
Leadenhall Capital Partners LLP
London Representative Office
Aioi Nissay Dowa Europe Limited
Aioi Nissay Dowa Insurance UK Limited
Aioi Nissay Dowa Insurance Management Limited
Aioi R&D Lab Limited
Toyota Insurance Management SE UK Branch
Box Innovation Group Limited
Insure The Box Limited
Insure The Box Limited UK Branch
ITB Services Limited
ITB Web Limited
ITB Telematics Solutions LLP
ITB Premium Finance Limited
MSIG Insurance Europe AG
MSIG Insurance Europe AG Region Germany
Toyota Insurance Management SE
Aioi Nissay Dowa Life Insurance of Europe AG
AD Information and Data Services (Europe) GmbH
Aioi Nissay Dowa Insurance Company of Europe SE German Branch
UNITED
KINGDOM
GERMANY
MSI
ADI
ADI
MSI
Takagi & Associates, Inc.
Takagi & Associates, Inc.
Canada Branch
Chubb Insurance Company of Canada
SPAC Insurance (Bermuda) Limited
MSI GuaranteedWeather Trading Limited
MS Financial Reinsurance Limited
MSIG Holdings (U.S.A.), Inc. Mexican Representative Office c/o Mapfre Tepeyac, S.A.
Panama Branch
Mitsui Sumitomo Seguros S/A.
São Paulo Representative Office
Bogotá Representative Office
Lima Representative Office
Buenos Aires Representative Office
MSI
MSI
ADI
ADI
MSI
MSI
MSI
BERMUDA
CANADA
SAIPAN
(U.S.A.)
GUAM
(U.S.A.)
MEXICO
PANAMA
BRAZIL
MSI
MSI
MSI
COLOMBIA
PERU
ARGENTINA
Introduction Management’s Message MS&AD’s Value Creation Story Strategy and Performance Leadership and Governance Appendix/Data Section
125
MS&AD INSURANCE GROUP HOLDINGS
126
INTEGRATED REPORT 2023
(¥ trillion)
Company C Group
Company D Group
Company E Group
Company F
Company G
Company H
Company I
Company J Group
MS&AD
Company K Group
6.12
5.14
3.55
3.20
2.87
2.31
2.20
2.16
1.83
1.47
0
20
40
60
80
Source: Prepared by MS&AD based on publicly announced information from each
insurance company
Source: Prepared by MS&AD based on publicly announced information from each
insurance company
*The gures for “Group” are calculated based on the non-consolidated sums of each
group company.
among 28
companies
and groups
No.9
Domestic life insurance companies/groups’*
premiums and others ranking (FY2022)
Net income of life insurance companies
under the three major non-life groups
(¥ billion) MS&AD Company L Company M
MS&AD Positioning Partnership
32.432.4
35.6
0.9
0.9
FY2022
27.827.8
34.2
16.5
16.5
31.231.2
27.3
15.3
15.3
74.074.0
48.3
15.9
15.9
55.055.0
46.4
20.0
20.0
FY2018 FY2021FY2020FY2019
Domestic Non-Life
Insurance Business
Source: Prepared by MS&AD based on publicly announced information from each
insurance company and data from the General Insurance Association of Japan
*The gures for MS&AD are simple sum of the non-consolidated gures for Mitsui
Sumitomo Insurance, Aioi Nissay Dowa Insurance, and Mitsui Direct General
Insurance. The gures for other insurance groups are the simple sums of the
non-consolidated gures for the domestic companies in each group.
No.1 share of
the domestic market
MS&AD
33%
Others
14%
Company
B Group
25%
Company
A Group
28%
¥9,119.5
billion
Source: Prepared by MS&AD based on publicly announced information from each
insurance company
*The gures for MS&AD are the simple sum of the non-consolidated figures for Mitsui
Sumitomo Insurance and Aioi Nissay Dowa Insurance. The gures for other insurance
groups are the simple sums of the non-consolidated group figures excluding the direct
insurance companies of each group.
(¥ billion)
FY2021FY2018 FY2019 FY2020
Share of Net Premiums Written* (FY2022) Positioning in the non-life insurance market in ASEAN and Asian countries (FY2021)
Underwriting Profit (before reflecting catastrophe reserves)
*
With global business expansion to 48 countries and regions, especially in Asia, and as the world’s only global non-life insurance group
with a presence in all 10 ASEAN countries, the Group maintains the No.1 presence for gross written premiums in the ASEAN region.
Strong customer base and one of
Japan’s leading corporate groups
Diverse channels and agent networks
India
8th*
1
Macau
5th
Sri Lanka
2nd
PR China
4th*
1
Taiwan
5th
Hong Kong
15th
Vietnam
15th
Myanmar
3rd
Cambodia
3rd
Brunei
Malaysia
3rd
Singapore
1st
Philippines
4th
Indonesia
16th
Laos
8th
Thailand
6th*
2
South Korea
6th*
1
ASEAN
Figures in parentheses are the sum of GWP*
2
for the following countries (rough
estimation): Singapore, Malaysia, Thailand, Indonesia, Philippines, and Vietnam
No.1
No.2
No.1
in gross written
premiums in the
ASEAN region
FY2021 Gross Written Premiums Ranking
of the ASEAN Countries
MS&AD
Approx. ¥207.1 billion
Approx.
¥179.5 billion
Company A
No.3
Approx.
¥133.2 billion
Company B
Source: Prepared by MS&AD based on publicly announced corporate information from each country
and region (reinsurance companies excluded)
*1 Ranking for foreign-based insurance companies (The ranking for South Korea is for direct net
premiums written of foreign-based insurance companies, and the ranking for India is for private
non-life insurance companies.)
*2 GWP: Gross Written Premiums
MS&AD
Company A Group
Company B Group
FY2022
50
-100
-50
100
150
200
0
250
76.776.7
102.4
145.3145.3
235.2
120.2
-54.0-54.0
41.841.8
-27.7
9.4
-16.9-16.9
-44.6
-12.7
62.3
-30.8
119.2
The insurance group most chosen by customers in Japan
Domestic Life
Insurance Business
No.9 in premiums income among
domestic life insurance companies/groups
International
Business
No.1 in gross written premiums (non-life) in the ASEAN region
Partnerships, etc. Diverse partnerships and sales channels
Number of domestic
non-life insurance
agents
(As of March 31, 2023)
77,789
Automobile
sales dealer/
motor
channel
Full-time
insurance
agents
Financial
Institutions
Digital/
Mobile
Partner
companies
44.95 million
Individual:
Toyota
Group
Mitsui
Group
Sumitomo
Group
Nippon Life
Group
2.65 million
Corporate:
Number of domestic customers of
Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance
Introduction Management’s Message MS&AD’s Value Creation Story Strategy and Performance Leadership and Governance Appendix/Data Section
127
MS&AD INSURANCE GROUP HOLDINGS
128
INTEGRATED REPORT 2023
Principal Management Indicators
1,300
1,350
1,400
1,450
1,500
1,550
1,600
2023
(Forecast)
(FY)
(¥ billion)
16.3%
Fire and Allied
¥266.0 billion
4.7%
Marine
¥76.0 billion
9.3%
Personal Accident
¥151.8 billion
18.7%
Other
¥305.2 billion
8.7%
Compulsory
Automobile
Liability
¥142.1 billion
42.3%
Automobile
¥688.5 billion
2023
(Forecast)
(FY)
(%)
2023
(Forecast)
(¥ billion)
Ordinary Profit Net Income
0
50
100
150
200
250
2020 2021
184.2184.2
145.7145.7
131.6131.6
92.292.2
80.0
90.0
100.0
110.0
Corporate Profile
President: Shinichiro Funabiki
(concurrently serving as Executive
Officer of MS&AD Holdings)
Date Established: October 1918
Number of Employees: 12,572 (as of
March 31, 2023)
Head Office: 9, Kanda-Surugadai
3-chome, Chiyoda-ku, Tokyo
URL https://www.ms-ins.com/english/
(FY)
1,618.01,618.0
96.496.4
185.0185.0
Net Premiums Written Composition by Class of Insurance (FY2022)
Combined Ratio Ordinary Profit/Net Income
Mitsui Sumitomo Insurance Co., Ltd.
(MSI)
Domestic Non-Life Insurance Business
Total
¥1,629.8
billion
Responsible for the non-life insurance business, which is a core business of the
MS&AD Insurance Group. Drawing on its wide range of partnerships mainly centering
on the Mitsui and Sumitomo groups, MSI is leveraging the full range of its capabilities
to develop and roll out global insurance and nancial services that meet every
conceivable need of customers around the world.
1. Net premiums written, net loss ratio, net expense ratio, and combined ratio figures are presented exclusive of Good Result Return premiums of the propriety automobile insurance
product “ModoRich,” which contains a special clause related to premium adjustment and refund at maturity.
2. Net loss ratio = (net claims paid + loss adjustment expenses) ÷ net premiums written × 100
3. Net expense ratio = (commissions and collection expenses + operating expenses and general and administrative expenses for underwriting) ÷ net premiums written × 100
4. Combined ratio = net loss ratio + net expense ratio
5. Net unrealized gains/(losses) on investments in securities (before tax effects) represents the difference (before tax effects) between the fair value and the acquisition cost
(including the amortized cost) of “available-for-sale securities with a practically determinable fair value” (except for stocks, etc., without a practically determinable fair value
and investment in associations, etc. (before FY2020, except for those where it is deemed to be extremely difficult to determine their fair value)). It includes monetary claims
bought and others that are accounted for as investment in securities.
(¥ billion)
Principal Indicators (Non-Consolidated)
142.0142.0
2022
1,629.81,629.8
20212020
1,579.31,579.3
1,559.51,559.5
2022
96.896.8
2020 2021
92.592.5
92.092.0
2022
141.2141.2
107.8107.8
Net premiums written
Growth rate of net premiums written
Net loss ratio
Net expense ratio
Combined ratio
Underwriting income
Investment income
Ordinary profit
Net income
Net assets
Total assets
Net unrealized gains/(losses) on investments
in securities (before tax effects)
Solvency margin ratio (non-consolidated)
Number of employees
Item
1,618.0
(0.7%)
63.5%
32.9%
96.4%
58.0
140.0
185.0
142.0
-
-
-
-
-
FY2023
(Forecast)
1,629.8
3.2%
64.3%
32.5%
96.8%
(15.9)
165.7
141.2
107.8
1,962.5
7,000.0
1,391.9
684.3%
12,572
FY2022
1,512.4
0.8%
66.2%
31.5%
97.7%
47.3
185.9
226.4
171.1
1,832.6
6,977.1
1,226.7
723.2%
14,577
FY2019FY2018
1,547.9
2.3%
63.3%
32.0%
95.3%
7.3
93.9
89.1
94.0
1,640.0
6,686.0
947.8
701.3%
14,371
FY2020
1,559.5
0.8%
59.8%
32.7%
92.5%
23.9
117.8
131.6
92.2
1,925.2
7,098.1
1,455.0
746.5%
14,168
1,579.3
1.3%
59.0%
33.0%
92.0%
41.0
153.0
184.2
145.7
2,089.1
7,374.3
1,570.2
722.5%
13,453
FY2021
Note: The actual total might differ from the summed total of the percentages
in the pie chart above due to the treatment of fractional amounts.
Notes:
This section contains information about credit ratings assigned to the following companies in the Group.
As of July 1, 2023
Credit Ratings for Domestic Insurance Companies
Standard &
Poor’s
Moody’s
Rating and
Investment
Information,
Inc. (R&I)
Japan Credit
Rating Agency,
Ltd. (JCR)
A.M. Best
Rating
Agency
Rating
Assigned
MS&AD
Holdings
Mitsui Sumitomo
Insurance Co., Ltd.
Aioi Nissay Dowa
Insurance Co., Ltd.
Mitsui Sumitomo Aioi
Life Insurance Co., Ltd.
A+
(Stable)
A+
(Stable)
A1
(Stable)
A1
(Stable)
AA
(Stable)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Issuer Credit
Rating
Financial Strength
Rating
Long-Term Issuer
Rating
Ability to Pay
Insurance Claims
Insurance Claims
Paying Ability
Issuer Rating
Mitsui Sumitomo Primary
Life Insurance Co., Ltd.
Credit Ratings
The table below indicates information about credit ratings of overseas subsidiaries.
As of July 1, 2023
Standard & Poor’s
Mitsui Sumitomo Insurance Co. (Europe), Ltd.
MSIG Insurance (Hong Kong) Ltd.
MSIG Insurance (Singapore) Pte. Ltd.
MSIG Insurance Europe AG
Aioi Nissay Dowa Insurance Company of Europe SE
Aioi Nissay Dowa Insurance UK Ltd.
Mitsui Sumitomo Insurance Company of America
Mitsui Sumitomo Insurance USA, Inc.
MSIG Specialty Insurance USA Inc.
Mitsui Sumitomo Insurance (China) Co., Ltd.
MSIG Mingtai Insurance Co., Ltd.
MS Amlin AG
MS Amlin Insurance SE
Syndicate 2001
MS Amlin AG
Mitsui Sumitomo Insurance Co. (Europe), Ltd.
MS First Capital Insurance Limited
Syndicate 2001
Transverse Specialty Insurance Company
Transverse Insurance Company
TRM Specialty Insurance Company
MS Amlin AG
MS Amlin Insurance SE
Mitsui Sumitomo Insurance Company of America
Mitsui Sumitomo Insurance USA, Inc.
MSIG Specialty Insurance USA Inc.
DTRIC Insurance Company Ltd.
DTRIC Insurance Underwriters, Ltd.
Aioi Nissay Dowa Insurance (China) Co., Ltd.
Moody’s
A.M. Best
*1. Applicable to the same ratings as Mitsui Sumitomo Insurance with the guarantee on insurance/reinsurance policies issued by Mitsui Sumitomo
Insurance (the issuer of the guarantee, the “Guarantor”). The obligations of the Guarantor under the guarantee rank pari passu with all other unsecured
indebtedness of the Guarantor. The guarantee is unconditional and covers the subsidiaries’ obligations of payment and not collection.
*2. Applicable to the same rating as Aioi Nissay Dowa Insurance with the guarantee on insurance/reinsurance policies issued by Aioi Nissay Dowa
Insurance (the issuer of the guarantee, the “Guarantor”). The obligations of the Guarantor under the guarantee rank pari passu with all other unsecured
indebtedness of the Guarantor. The guarantee is unconditional and covers the subsidiaries’ obligations of payment and not collection.
Rating Agency Overseas Subsidiaries Credit Rating
Credit Ratings for Overseas Insurance Companies
Financial Strength
Rating
Long-Term Issuer
Credit Rating
Insurance Financial
Strength Rating
Long-Term Issuer
Rating
AA+
(Stable)
-
-
-
-
AA+
(Stable)
A+
(Stable)
aa
(Stable)
A+
(Stable)
A+
(Stable)
A1
(Stable)
A+
(Stable)
A+
(Stable)
AA+
(Stable)
AA+
(Stable)
A+
(Stable)
aa
(Stable)
AA
(Stable)
AA
(Stable)
AA
(Stable)
-
-
Insurance Financial Strength Rating A1 (Stable)*
1
Insurance Financial Strength Rating A1 (Stable)
Financial Strength Rating A (Stable)
Financial Strength Rating A+ (Stable)
Financial Strength Rating A+ (Stable)*
2
Financial Strength Rating A+ (Stable)*
1
Financial Strength Rating A (Stable)
Issuer Credit Rating a+ (Stable)
Financial Strength Rating A (Stable)
Issuer Credit Rating a+ (Negative)
Financial Strength Rating A (Stable)
Issuer Credit Rating a (Stable)
Financial Strength Rating A− (Stable)
Issuer Credit Rating a− (Stable)
Financial Strength Rating A+ (Stable)
Issuer Credit Rating aa (Stable)
Introduction Management’s Message MS&AD’s Value Creation Story Strategy and Performance Leadership and Governance Appendix/Data Section
129
MS&AD INSURANCE GROUP HOLDINGS
130
INTEGRATED REPORT 2023
1.41
0.97
1. Net loss ratio = (net claims paid + loss adjustment expenses) ÷ net premiums written × 100
2.
Net expense ratio = (commissions and collection expenses + operating expenses and general and administrative expenses for underwriting) ÷ net premiums written × 100
3. Combined ratio = net loss ratio + net expense ratio
4. Net unrealized gains/(losses) on investments in securities (before tax effects) represents the difference (before tax effects) between the fair value and the
acquisition cost (including the amortized cost) of “available-for-sale securities with a practically determinable fair value” (except for stocks, etc., without a
practically determinable fair value and investment in associations, etc. (before FY2020, except for those where it is deemed to be extremely difficult to
determine their fair value)). It includes money trusts that are accounted for as investment in securities.
16.8%
Fire and Allied
¥224.6 billion
0.6%
Marine
¥7.8 billion
4.5%
Personal Accident
¥60.6 billion
10.8%
Other
¥143.8 billion
10.0%
Compulsory
Automobile
Liability
¥133.3 billion
57.3%
Automobile
¥765.2 billion
2022 2023
(Forecast)
80.0
90.0
100.0
110.0
(%)
2023
(Forecast)
(¥ billion)
Ordinary Profit Net Income
0
1. Net loss ratio = (net claims paid + loss adjustment expenses) ÷ net premiums written × 100
2. Net expense ratio = (commissions and collection expenses + operating expenses and general and administrative expenses for underwriting) ÷ net premiums
written × 100
3. Combined ratio = net loss ratio + net expense ratio
2023
(Forecast)
80.0
90.0
100.0
120.0
110.0
(%)
113.2
Principal Management Indicators
Net Premiums Written Composition by Class of Insurance (FY2022)
Combined Ratio Ordinary Profit/Net Income
Principal Management Indicators
Net Premiums Written Composition by Class of Insurance (FY2022)
Combined Ratio Ordinary Profit/Net Income
(¥ billion)
Ordinary Profit Net Income
1.5
(1.5)
(0.5)
(1.0)
0.5
0
1.0
2021
0.8
0.82
(1.17)
(0.89)
2020
98.8%
Automobile
¥34.12 billion
0.3%
Personal
Accident
¥0.08 billion
0.9%
Compulsory
Automobile
Liability
¥0.32 billion
Corporate Profile
President: Keisuke Niiro
(concurrently serving as Executive
Officer of MS&AD Holdings)
Date Established: June 1918
Number of Employees: 12,741 (as of
March 31, 2023)
Head Office: 28-1, Ebisu 1-chome,
Shibuya-ku, Tokyo
URL
https://www.aioinissaydowa.co.jp/english/
Corporate Profile
President: Takayuki Kawamura
Date Established: June 1999
Number of Employees: 498 (as of March
31, 2023)
Head Office: 5-1, Kouraku 2-chome,
Bunkyo-ku, Tokyo
URL https://www.mitsui-direct.co.jp
(Japanese language only)
(FY) 2023
(Forecast)
(FY)(FY) (FY)
Mitsui Direct General Insurance Co., Ltd.
(Mitsui Direct General)
Mitsui Direct General is a non-life insurance company that engages in the direct sale
of individual voluntary automobile insurance via the Internet and smartphones.
Domestic Non-Life Insurance Business
Aioi Nissay Dowa Insurance Co., Ltd.
(ADI)
Domestic Non-Life Insurance Business
Total
¥34.5
billion
(¥ billion)
Principal Indicators (Non-Consolidated)
1,281.4 1,281.4
2020 2023
(Forecast)
2022
1,291.3 1,291.3
(¥ billion)
2021
1,335.5 1,335.5
(FY)
1,360.0 1,360.0
1,000
1,100
1,200
1,300
1,400
Responsible for the non-life insurance business, which is a core business of the
MS&AD Insurance Group. Harnessing the networks of the Toyota and Nippon Life
groups as well as the strength of its community-based retail market development
capabilities, ADI is working diligently to further develop its business.
Total
¥1,335.5
billion
20
40
60
100
80
90.0 90.0
60.0
60.0
96.7
96.7
2020 2021
93.5
93.5
94.894.8
101.2101.2
2022
66.7 66.7
43.1
43.1
2020 2021
32.4
32.4
80.9 80.9
53.9 53.9
21.6
21.6
33
34
35
37
36
2023
(Forecast)
(¥ billion)
(FY)
35.0
34.5 34.5
2022
35.4
2021
36.4
2020
2022
105.4
2020 2021
97.4
95.5
2022
(0.56)
0.89
Net premiums written
Growth rate of net premiums written
Net loss ratio
Net expense ratio
Combined ratio
Underwriting income
Ordinary profit
Net income
Net assets
Total assets
Solvency margin ratio (non-consolidated)
Number of employees
Item
(¥ billion)
Principal Indicators (Non-Consolidated)
FY2023
(Forecast)
35.0
1.4%
74.8%
38.4%
113.2%
(1.31)
(1.17)
(0.89)
-
-
-
-
FY2022
34.5
(2.5%)
67.5%
37.9%
105.4%
(0.37)
(0.56)
0.89
16.6
62.6
705.5%
498
36.6
(3.2%)
76.2%
25.3%
101.5%
0.33
0.38
0.24
13.9
60.9
497.6%
545
FY2019FY2018
36.3
(0.8%)
74.9%
28.3%
103.2%
0.13
0.17
0.15
14.0
59.7
526.9%
552
FY2020
36.4
0.3%
64.2%
31.3%
95.5%
1.37
1.41
0.97
14.9
61.8
595.8%
559
FY2021
35.4
(3.0%)
64.4%
33.0%
97.4%
0.75
0.80
0.82
15.7
62.9
653.9%
528
Net premiums written
Growth rate of net premiums written
Net loss ratio
Net expense ratio
Combined ratio
Underwriting income
Investment income
Ordinary profit
Net income
Net assets
Total assets
Net unrealized gains/(losses) on investments
in securities (before tax effects)
Solvency margin ratio (non-consolidated)
Number of employees
Item
FY2023
(Forecast)
1,360.0
1.8%
62.8%
33.9%
96.7%
50.0
43.0
90.0
60.0
-
-
-
-
-
FY2022
1,335.5
3.4%
66.6%
34.6%
101.2%
0.6
67.3
66.7
43.1
763.7
3,733.6
528.8
830.8%
12,741
1,233.5
0.9%
67.8%
33.8%
101.6%
15.5
43.0
61.3
37.3
735.5
3,410.9
506.3
688.2%
13,657
FY2019FY2018
1,276.7
3.5%
62.0%
34.5%
96.5%
1.1
55.3
58.6
44.7
638.0
3,420.7
375.3
702.3%
13,775
FY2021
1,291.3
0.8%
59.8%
35.0%
94.8%
30.5
53.1
80.9
53.9
798.4
3,745.1
579.4
758.6%
13,503
FY2020
1,281.4
0.4%
58.6%
34.9%
93.5%
(12.4)
48.3
32.4
21.6
838.6
3,745.2
664.9
790.9%
13,933
Note: The actual total might differ from the summed total of the percentages
in the pie chart above due to the treatment of fractional amounts.
Note: The actual total might differ from the summed total of the percentages
in the pie chart above due to the treatment of fractional amounts.
Notes: Notes:
Introduction Management’s Message MS&AD’s Value Creation Story Strategy and Performance Leadership and Governance Appendix/Data Section
131
MS&AD INSURANCE GROUP HOLDINGS
132
INTEGRATED REPORT 2023
960.0
300
400
350
450
(¥ billion)
24.5%
12.1%
Income Guarantee
Insurance
(including income
guarantee special
clause)
39.1%
Other
24.3%
Medical
Insurance
2023
(Forecast)
(¥ billion)
0
10
20
30
40
50
45.6
25.0
2023
(Forecast)
(¥ billion)
Corporate Profile
President: Shiro Kaji
Date Established: August 1996
Number of Employees: 2,391 (as of
March 31, 2023)
Head Office: 27-2, Shinkawa
2-chome, Chuo-ku, Tokyo
URL https://www.msa-life.co.jp
(Japanese language only)
1.
The amount of new policies, amount of policies in force, and annualized premiums of policies in force are the totals of individual insurance and individual annuity insurance.
2. Core profit is an insurance business profitability indicator that is calculated by deducting “capital gains/(losses)” and “non-recurring income and losses” from
ordinary profit.
3. Net unrealized gains/(losses) on investments in securities (before tax effects) represents the difference (before tax effects) between the fair value and the
acquisition cost (including the amortized cost) of “available-for-sale securities with a practically determinable fair value” (except for stocks, etc., without a
practically determinable fair value and investment in associations, etc. (before FY2020, except for those where it is deemed to be extremely difficult to
determine their fair value)). It includes monetary claims bought, money trusts, and others that are accounted for as an investment in securities.
8%
Japan Post Bank,
Securities Firms, etc.
36%
Mega Banks,
Trust Banks, etc.
56%
Regional Banks,
Shinkin Banks
0
400
200
600
1,000
1,200
800
(¥ billion)
Fixed Variable
Fixed Variable
2023
(Forecast)
2023
(Forecast)
0
1,000
2,000
3,000
4,000
5,000
7,000
8,000
6,000
(¥ billion)
2023
(Forecast)
(¥ billion)
0
40
20
80
60
160
26.0 26.0
16.0
16.0
Corporate Profile
Representative Director, President:
Jun Kurata
Date Established: September 2001
Number of Employees: 410 (as of
March 31, 2023)
Head Office: Yaesu First Financial
Building, 3-7, Yaesu 1-chome,
Chuo-ku, Tokyo
URL https://www.ms-primary.com
(Japanese language only)
1. The amount of new policies and amount of policies in force are the totals of individual insurance and individual annuity insurance.
2. Core profit is a life insurance business profitability indicator that is calculated by deducting “capital gains/(losses)” and “non-recurring income/losses” from
ordinary profit. In this business, the sum of “core profit” and “capital gains (losses)” provides a more appropriate indicator of actual profit for the period.
3. Net unrealized gains/(losses) on investments in securities (before tax effects) represents the difference (before tax effects) between the fair value and the
acquisition cost (including the amortized cost) of “available-for-sale securities with a practically determinable fair value” (except for stocks, etc., without a
practically determinable fair value and investment in associations, etc. (before FY2020, except for those where it is deemed to be extremely difficult to
determine their fair value)). It includes monetary claims bought, money trusts, and others that are accounted for as an investment in securities.
(FY)
(FY) (FY)
(FY)
(FY) (FY)
441.6
1,004.0
7,113.0
Mitsui Sumitomo Primary Life Insurance Co., Ltd.
(MSI Primary Life)
Specializing in over-the-counter sales via nancial institutions, MSI Primary Life is a life
insurance company that offers asset building–type and asset inheritance–type products
centered on individual annuity insurance and whole life insurance.
Domestic Life Insurance Business
Mitsui Sumitomo Aioi Life Insurance Co., Ltd.
(MSI Aioi Life)
Domestic Life Insurance Business
Principal Management Indicators
Premiums Income Weight by Type of Sales Channel (FY2022)
Amount of Policies in Force Ordinary Profit/Net Income
Principal Management Indicators
Annualized Premiums of Policies in Force Weight by Type of Product (FY2022)
Embedded Value (EEV) Ordinary Profit/Net Income
2023
(Forecast)
0
200
400
600
800
1,000
1,200
MSI Aioi Life is a life insurance company that offers protection-type life insurance
products, while leveraging the Group’s marketing network and customer base. The
company is realizing a growth model that involves a combination of strategies to utilize
unique marketing channels.
440.5 440.5
2022
447.9
443.8
448.1
202120202019
908.0 908.0
2022
923.6
2019 2020 2021
958.3
27.8 27.8
12.7 12.7
2022
18.6
39.0
21.0
7.5
2019 2020 2021
25.6
11.9
2022
1,220.4 1,220.4
2019 2020 2021
812.4
872.1
785.4
2022
6,932.2 6,932.2
2019 2020 2021
6,803.6
6,514.0
6,595.8
2022
31.0 31.0
19.7
19.7
20202019 2021
31.4 31.4
20.3
160.0 160.0
43.1
87.7 87.7
53.0
Premiums income
Amount of new policies
Amount of policies in force
Ordinary profit
Core profit/(loss)
Core profit + Capital gains
Net income
Net assets
Total assets
Net unrealized gains/(losses) on investments
in securities (before tax effects)
Embedded value (EEV)
Solvency margin ratio
Number of employees
Item
(¥ billion)
Principal Indicators (Non-Consolidated)
1,004.0
1,077.2
7,113.0
26.0
-
-
16.0
-
-
-
-
-
-
FY2023
(Forecast)
1,220.4
1,279.8
6,932.2
31.0
73.2
38.7
19.7
150.1
6,823.7
(101.4)
664.6
899.3%
410
FY2022
1,095.6
1,118.2
6,678.5
35.5
(12.3)
44.2
23.3
195.3
6,885.3
27.3
436.1
825.4%
400
FY2019FY2018
872.1
882.7
6,514.0
31.4
(27.9)
27.6
20.3
194.8
6,814.9
(7.4)
348.4
746.0%
396
FY2020
785.4
788.2
6,595.8
160.0
40.8
160.8
43.1
260.5
7,024.7
51.3
557.4
1,054.8%
390
812.4
819.6
6,803.6
87.7
54.8
85.6
53.0
241.4
7,053.3
(1.0)
641.9
1,094.8%
403
FY2021
Amount of new policies
Amount of policies in force
Annualized premiums of policies in force
Ordinary profit
Core profit
Risk differential gains/(losses)
Expenses differential gains/(losses)
Investment income differential gains/(losses)
Net income
Net assets
Total assets
Net unrealized gains/(losses) on investments
in securities (before tax effects)
Embedded value (EEV)
Solvency margin ratio
Number of employees
Item
(¥ billion)
Principal Indicators (Non-Consolidated)
FY2023
(Forecast)
1,312.0
22,744.4
441.6
45.6
-
-
-
-
25.0
-
-
-
960.0
-
-
FY2022
1,456.6
23,249.9
440.5
27.8
24.9
58.9
(2.8)
(6.6)
12.7
126.0
5,009.1
(29.6)
908.0
975.5%
2,391
3,114.5
24,533.1
431.5
19.5
15.5
62.7
(13.0)
(4.3)
7.9
275.9
4,229.6
114.0
819.4
1,681.8%
2,604
FY2019FY2018
2,068.4
24,458.0
448.1
18.6
13.6
62.6
(10.8)
(7.9)
7.5
260.7
4,510.4
86.9
890.2
1,549.3%
2,588
FY2020
1,769.0
24,266.9
447.9
25.6
24.8
69.4
(5.6)
(6.7)
11.9
257.4
4,534.3
73.7
958.3
1,439.5%
2,529
FY2021
1,690.4
23,847.7
443.8
39.0
34.5
70.0
(1.3)
(6.7)
21.0
175.7
4,883.7
41.2
923.6
1,151.9%
2,436
75.5%
Protection-Type
Products
(medical insurance, income
guarantee insurance, term
life insurance, increasing term
life insurance, other)
Notes:
890.2
Ordinary Profit Net Income
Savings-Type Products
(whole life insurance, endowment
insurance, individual annuity
insurance, lump sum whole life
insurance, other)
(Refer to the “Glossary of Insurance
Terminology” on page 107)
Notes:
Ordinary Profit Net Income
Introduction Management’s Message MS&AD’s Value Creation Story Strategy and Performance Leadership and Governance Appendix/Data Section
133
MS&AD INSURANCE GROUP HOLDINGS
134
INTEGRATED REPORT 2023
10%
Motor
Insurance
16%
Marine & Aviation
Insurance
42%
Casualty
and Other
32%
Property
Insurance
*1 Figures are calculated and presented using data for subsidiaries and equity-method afliates in Asia (excluding countries in Oceania). Figures for overseas ofces are not included.
*2 Data reects consolidated gures for MS First Capital Limited of Singapore from FY2018.
*3 Equity-method afliates. Net premiums written are shown on a 100% basis, regardless of equity ownership. Net income is presented on an equity ownership basis.
*4 The premium growth rate is the percentage increase in net premiums written (on a local currency basis) from the previous scal year.
*5 Singapore’s FY2018 premium growth rate has been calculated after considering a comparison with MS First Capital Limited’s net premiums written in FY2017 following that company’s
inclusion in the scope of consolidation in FY2018.
Principal Indicators
32%
Europe
29%
North
America
15%
UK
25%
Others
(FY)
(£ million)
(%)
0
500
1,000
1,500
2,500
2,000
3,500
4,000
3,000
80
100
90
110
120
130
140
Net Premiums Written (left axis)
Combined Ratio (right axis)
2023
(Forecast)
4,061
4,061
Notes: 1. On a local reporting basis. New accounting standards (IFRS 17, “Insurance Contracts,” and
IFRS 9, “Financial Instruments”) have been applied from FY2023, and the gures for FY2023
(Forecast) are based on the new accounting standards.
In accordance with the change in accounting standards, net premiums written for FY2023
(Forecast) are shown based on the former accounting standards, and underwriting income
(loss) and investment income (loss) are shown based on the new accounting standards.
2. The accounting method where securities market uctuations are reected in the prot-loss
statement has been adopted for investment income (loss) (from the previous accounting
standard).
3. The EI expense ratio and combined ratio are calculated by considering foreign exchange
gains/losses included in underwriting income.
4. Figures for FY2020 onward are the sum of MS Amlin Underwriting Limited, MS Amlin AG
(brand name: MS Reinsurance), MS Amlin Insurance SE, and other services companies.
Net premiums written
Growth rate of net
premiums written
EI claims ratio
EI expense ratio
Combined ratio
Underwriting
income/(loss)
Investment Income
Net income
Item
4,061
12.6%
-
-
-
311
60
291
Net Premiums Written by Product Line Net Premiums Written by Geography
Trends in Premium Growth Rates (FY2017–FY2022)
*4,*5
Conditions by Major Country and Region (FY2022)
Trends in Combined Ratios (FY2017–FY2022)
Net Premiums Written and Combined Ratio
36.0
39.3
13.2
14.6
6.1
12.8
4.4
1.1
0.4
1.1
Country/Region
Net Income
Net Premiums Written
(¥ billion)
FY2022
Net Premiums
Written
£3,605
million
CEO
Headquarters
Number of Employees
FY2022 Net
Premiums Written
(£ million)
Business Description
Company Name
MS Amlin
Underwriting Limited
London, UK
Andrew Carrier
Approx. 540
1,246
Lloyd’s business
MS Amlin AG
(brand name: MS Reinsurance)
Zurich, Switzerland
Robert Wiest
Approx. 230
1,616
Reinsurance business
in Switzerland, Bermuda,
the United States, etc.
MS Amlin Insurance SE
MS Amlin
Corporate Services Limited
London, UK
Matthew Pasterfield
Business to provide
services such as IT and digital
to MS Amlin and
other Group companies
Brussels, Belgium
Ludovic Senecaut
Approx. 630
739
Approx. 350
−
Continental Europe
Primary Insurance business
with a focus on Belgium,
the Netherlands,
and France, etc.
Asian Region
As the sole insurance group with underwriting operations in all 10 ASEAN countries in the Asian
region, we are leveraging our solid business base to create further growth and expand locally
rooted businesses.
International Business
MS Amlin
Centered on three insurance operating companies—Lloyd’s, Reinsurance and Continental Europe
Direct Insurance, and a service operating company—MS Amlin is one of the leading insurer
brands that provides both insurance and reinsurance services globally.
International Business
(£ million)
Principal Indicators
Main Entities of MS Amlin
(as of March 31, 2023)
Principal Indicators
*1
Singapore
Malaysia
Hong Kong
Thailand
Indonesia
3.6
47.6
46.0
78.3
6.1
0.8
2.8
0.7
2.0
0.6
Country/Region
Net Income
Net Premiums Written
Vietnam
China
Taiwan
India
*3
Philippines
*3
Singapore
Malaysia
Hong Kong
Thailand
Indonesia
Vietnam
China
Taiwan
India
Philippines
55%
24%
Others
9%
Marine
Insurance
13%
Property
Insurance
Motor
Insurance
Net Premiums Written and Net Income Net Premiums Written by Product Line
(FY2022)
150
(FY)
(FY)
-20
-10
0
10
20
30
40
70
(%) (%)
60
70
80
90
100
110
140
FY2022
Net Premiums
Written
£3,605
million
FY2023
(Forecast)
3,605
28.1%
64%
34%
98%
63
(91)
(144)
FY2022
3,050
3.2%
71%
35%
106%
(174)
54
(94)
3,220
5.6%
67%
34%
102%
(55)
263
55
2,681
(16.7%)
75%
35%
109%
(277)
144
(222)
2,814
4.9
73
35%
107%
(197)
101
(190)
FY2021FY2018 FY2019 FY2020
2022
98
3,6053,605
2018 2019 2020 2021
106
102
107
109
3,0503,050
2,8142,814
3,2203,220
2,6812,681
2018 2019 2020 2021
2018 2019 2020 2021 2022
2022
2018*
2
2019 (FY)
(¥ billion) (¥ billion)
Net Premiums Written (left axis) Net Income (right axis)
0
50
100
150
200
250
2021
165.6165.6
28.828.8
2023
(Forecast)
219.7219.7
33.6
33.6
26.126.1
168.9168.9
2020
16.616.6
166.9
166.9
23.123.1
157.7
157.7
0
10
20
30
40
2022
206.7206.7
27.9
27.9
Introduction Management’s Message MS&AD’s Value Creation Story Strategy and Performance Leadership and Governance Appendix/Data Section
135
MS&AD INSURANCE GROUP HOLDINGS
136
INTEGRATED REPORT 2023
Commentary 1: Balance Sheet (B/S)
Commentary 2: Statements of Income (P/L)
Main components of the statements of income
A summary of the Group’s consolidated statements of income (see page 145) is provided below. It consists primarily of
underwriting income and expenses and investment income and expenses.
Underwriting profit and catastrophe reserves for domestic non-life insurance companies
Underwriting profit can be dramatically affected by events such as natural catastrophes. Non-life insurance companies are legally
required to build up catastrophe reserves to mitigate that impact. When companies have to pay extremely large insurance claims,
they can reverse the catastrophe reserves, which mitigates the impact to a certain degree. The following table indicates past
underwriting profit, incurred losses related to natural catastrophes, and changes in catastrophe reserves (net provision). (See page
107 of the “Glossary of Insurance Terminology” for details on catastrophe reserves and page 111 for underwriting profit.)
2,771.9
2,082.0
16,149.3
2,693.5
959.4
476.7
496.1
1,743.7
25,000.4
(Main) assets
Cash, deposits and savings
Money trusts
Investments in securities
(of which: stocks)
Loans
Tangible fixed assets
Intangible fixed assets
Other assets
Total assets
(Main) liabilities
Policy liabilities
Bonds issued
Other liabilities
Deferred tax liabilities
Total liabilities
(Main) Net assets
Shareholders’ equity
Net unrealized gains/losses on securities
Total net assets
Total liabilities and net assets
Underwriting profit/(loss)
Impact on underwriting profit (A + B)
Incurred losses due to natural catastrophes (A)
Great East Japan Earthquake
2011 Thailand floods
2014 massive snowfalls
Large-scale natural catastrophes including
2017 hurricanes in North America
July heavy rain, Typhoon Nos. 21 and
24 in 2018
Typhoon Nos. 15 and 19 in 2019
Other natural catastrophes
Net provision for catastrophe reserves (B)
(3.0)
(13.2)
55.1
1.3
0.6
-
-
-
-
53.2
(41.9)
(36.1)
(93.3)
96.3
-
(23.0)
82.1
-
-
-
37.1
(3.0)
28.7
(58.5)
27.2
-
(5.1)
2.2
-
-
-
30.1
31.3
43.9
(149.7)
68.1
-
-
0.3
-
-
-
67.7
81.6
121.3
(132.9)
51.0
-
-
-
-
-
-
51.0
81.8
89.3
(159.0)
114.3
-
-
-
41.3
-
-
73.0
44.6
62.8
(160.8)
240.7
-
-
-
-
183.7
-
56.9
(79.8)
8.4
(172.3)
139.0
-
-
-
-
-
93.0
46.0
33.3
11.4
(155.1)
89.7
-
-
-
-
-
-
89.7
65.3
71.5
(151.9)
78.1
-
-
-
-
-
-
78.1
73.7
(¥ billion)
(¥ billion)
Income (+): underwriting income (¥4,482.4 billion); investment income (¥745.7 billion); other ordinary income (¥23.1 billion)
Expenses (-): underwriting expenses (¥4,064.2 billion), of which ¥1.2 billion is provision for underwriting reserves; investment expenses
(¥195.6 billion); operating expenses and general and administrative expenses (¥739.3 billion); other ordinary expenses (¥20.8 billion)
Ordinary profit: ¥231.1 billion
FY2022
Income (+): underwriting income (¥4,239.5 billion); investment income (¥858.6 billion); other ordinary income (¥33.7 billion)
Expenses (-): underwriting expenses (¥3,915.3 billion), of which ¥259.9 billion is provision for underwriting reserves;
investment expenses (¥108.9 billion); operating expenses and general and administrative expenses (¥696.3 billion);
other ordinary expenses (¥20.8 billion) Ordinary profit: ¥390.4 billion
FY2021
Impact of natural catastrophes on underwriting profit
Short Commentary: Group Financial Statements
On its consolidated balance sheet as of the end of FY2022, the Group had total assets of ¥25.0 trillion, and the majority of liabilities
(¥18.8 trillion) are “policy liabilities”—that is, reserves for paying future insurance claims. On the other hand, the largest asset item is
investments in securities, and that has a total fair value of ¥16.1 trillion. Unrealized gains (after tax-effect deduction) in excess of the fair
value of investments in securities at acquisition costs are recorded in net unrealized gains/(losses) on securities (¥1.2 trillion). This means
that policy liabilities, which account for the majority of the Group’s balance sheet liabilities, are invested in securities. In addition,
unrealized gains on investments in securities (after tax-effect accounting) accounted for approximately 40% of net assets (¥3.0 trillion).
18,869.5
714.7
1,852.3
31.1
21,944.1
1,745.2
1,216.5
3,056.2
25,000.4
(15.2)
(76.6)
115.5
-
-
-
-
-
-
115.5
(38.8)
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
* Simple sum of Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance
Example: The impact of loss of ¥311.5 billion from natural catastrophes for FY2011 was mitigated by the reversal of catastrophe reserves of ¥139.5 billion and resulted in an
underwriting loss of ¥190.0 billion.
137
MS&AD INSURANCE GROUP HOLDINGS
138
INTEGRATED REPORT 2023
Five-Year Summary (Unaudited) 139
Management’s Discussion and Analysis 140
Premiums Written and Net Claims Paid—
Non-Life Insurance (Unaudited)
147
Policies in Force and New Policies—
Domestic Life Insurance (Unaudited)
149
Investment Assets and Investments
in Securities (Unaudited)
150
Consolidated Balance Sheets 151
Consolidated Statements of Income 153
Consolidated Statements of
Comprehensive Income
154
Consolidated Statements of
Changes in Net Assets
155
Consolidated Statements of Cash Flows 158
Notes to Consolidated Financial Statements 159
Summary of Business Results of
Main Consolidated Subsidiaries
185
Performance Record
Five-Year Summary (Unaudited)
Yen in millions US$ in millions
FY2018 FY2019 FY2020 FY2021
FY2022 FY2022
Ordinary income: ¥5,500,438 ¥5,168,361 ¥4,892,244 ¥5,132,042
¥5,251,271 $39,189
Net premiums written 3,497,572 3,573,732 3,500,996 3,609,052
3,934,473 29,362
Ordinary profit 290,847 157,701 306,524 390,499
231,113 1,725
Net income attributable to owners of the
parent 192,705 143,030 144,398 262,799
161,530 1,205
Comprehensive income/(loss) 79,701 157,288 753,938 310,470
(80,923) (604)
Net assets 2,778,047 2,494,038 3,126,657 3,302,749
3,056,273 22,808
Total assets 23,132,539 23,196,455 24,142,562 25,033,846
25,000,433 186,570
Yen US$
Net income attributable to owners of the
parent per share - Basic
¥328.72 ¥248.36 ¥255.79 ¥474.52 ¥299.80 $2.24
Net income attributable to owners of the
parent per share - Diluted
328.60 248.22 255.65 474.32 299.70 2.24
Net assets per share
4,712.11 4,308.37 5,525.42 5,955.21 5,633.94 42.04
Equity ratio
11.89% 10.57% 12.78% 13.02% 12.04% –
Return on equity
6.77% 5.50% 5.22% 8.29% 5.15% –
Price earnings ratio
10.25 12.18 12.70 8.38 13.70 –
Yen in millions US$ in millions
Cash flows
Cash flows from operating activities
¥776,724 ¥667,896 ¥ 323,912 ¥236,708 ¥194,153 $1,449
Cash flows from investing activities
252,417 330,363 43,925 71,976 480,953 3,589
Cash flows from financing activities
33,337 65,321 79,278 58,545 (314,502) (2,347)
Cash and cash equivalents at the end
of year
1,798,526 2,198,680 1,994,434 2,256,216 2,646,431 19,749
Number of employees
41,467 41,582 41,501 39,962 38,584 –
Note: U.S. dollar amounts in this report have been translated from yen, for convenience only, at the rate of ¥134=US$1. For details, see Note 1 of Significant Accounting Policies (p159).
Management’s Discussion and Analysis
1. OVERVIEW
This Management Discussion and Analysis (MD&A) provides information on
the nature of the businesses conducted by MS&AD Holdings and its
affiliates (176 subsidiaries and 32 associates as of March 31, 2023), and the
positioning of the principal affiliates within these businesses.
MS&AD is a specified listed company pursuant to the provisions
stipulated in Japanese Cabinet Order 49-2 and is regulated under this Order
with respect to securities transactions and other matters. As a result,
investors should make decisions based on the Group’s consolidated
financial statements as provided for under the minimal standards criteria of
material facts set forth in restrictions on insider trading.
Description of Businesses
1) Domestic Non-Life Insurance Business
MS&AD’s domestic non-life insurance business is operated by the following
three subsidiaries and others in Japan:
a) Mitsui Sumitomo Insurance Company, Limited (“MSI”)
b) Aioi Nissay Dowa Insurance Company, Limited (“ADI”)
c) Mitsui Direct General Insurance Company, Limited (“Mitsui Direct
General”)
2) Domestic Life Insurance Business
MS&AD’s domestic life insurance business is operated by the following two
subsidiaries and others in Japan:
a) Mitsui Sumitomo Aioi Life Insurance Company, Limited (“MSI Aioi Life”)
b) Mitsui Sumitomo Primary Life Insurance Company, Limited (“MSI Primary
Life”)
3) International Business
MS&AD’s international business is operated by the international divisions of
the domestic non-life insurance subsidiaries in Japan and their overseas
subsidiaries, and the overseas branches of the domestic non-life insurance
subsidiaries.
4) Financial Services Business/Risk-Related Services Business
a) Financial Services Business
MS&AD’s financial services business, including asset management,
financial guarantees, 401k, ART (alternative risk transfer), personal
finance, and venture capital finance, is operated by the domestic non-life
insurance subsidiaries; Sumitomo Mitsui DS Asset Management
Company, Limited; MITSUI SUMITOMO INSURANCE Venture Capital
Co., Ltd.; Leadenhall Capital Partners LLP; and others.
b) Risk-Related Services Business
MS&AD’s risk-related services business, including risk management, is
operated by MS&AD InterRisk Research Institute & Consulting, Inc., and
others.
2. SIGNIFICANT ACCOUNTING ESTIMATES AND
ASSUMPTIONS
MS&AD Holdings’ consolidated financial statements are prepared in
accordance with accounting principles generally accepted in Japan (Japan
GAAP). The preparation of these financial statements requires MS&AD
Holdings’ management to select and apply accounting policies, and to
make several estimates regarding the impact on disclosure of assets and
liabilities as well as revenues and expenses. Management bases its
estimates on historical experience and other assumptions considered
reasonable. Nevertheless, these estimates contain inherent uncertainties
and thus could differ from actual results.
Significant accounting policies used in the preparation of MS&AD
Holdings’ consolidated financial statements are presented in “Significant
Accounting Policies” of the “Notes to Consolidated Financial Statements”
under “Section 5. Accounting Status.” The following items are considered to
be important accounting estimates.
1) Method for Determination of Fair Value
Certain assets and liabilities are recorded on the Company’s balance sheet
at their fair values. These fair values are determined based on market prices.
For certain derivatives for which market prices are not available, reasonable
estimates of fair value are made based on the present value of future cash
flows, the price of the underlying assets, the contract period, and other
factors.
2) Impairment of Securities
Because securities held by the Group companies are subject to the risk of
price fluctuations in securities markets, MS&AD applies impairment
accounting for securities based on reasonable criteria. If the securities
markets decline, an impairment loss could be incurred.
3) Impairment of Fixed Assets
When the profitability of fixed assets declines and investments in these
assets are unlikely to be recovered, MS&AD recognizes impairment losses
to reflect recoverable amounts under certain circumstances.
The recoverable amount for an asset or asset group is the higher of the
net sales value (the value computed by deducting expected disposal
expenses from the fair value of an asset or asset group) and the value in use
(the present value of expected future cash flows resulting from the continual
usage and subsequent disposal of an asset or asset group).
Accordingly, the amount of the impairment loss for fixed assets
depends on estimated future cash flows based on the assumption and
forecasts that MS&AD considers reasonable. Consequently, an additional
impairment loss could be incurred in the event of changes in the related
business environment, in the event of a change in the usage of fixed assets
or in the event of changes in real estate or leasing market prices.
4) Deferred Tax Assets
In determining recoverable deferred tax assets, future taxable income is
estimated based on the assumptions and forecasts that MS&AD considers
reasonable. Because the recoverable amount of deferred tax assets
depends on estimates of future taxable income, the amount of deferred tax
assets could fluctuate in the event of a subsequent change in estimates of
future taxable income.
5) Allowance for Credit Losses
In preparation for losses on bad debts, MS&AD records estimated amounts
deemed to be unrecoverable as an allowance for credit losses.
Unrecoverable amounts and recorded allowances for credit losses could
change from their initial estimates due to changes in the financial condition
of debtors.
6) Outstanding Claims
MS&AD estimates and sets aside reserves as outstanding claims for any
unpaid amounts of its payment obligations as determined or recognized by
insurance contracts. Claim payments and recorded outstanding claims
could change from their initial estimates due to such factors as the progress
of loss adjustment, the results of legal judgments, and exchange rate
fluctuations.
7) Underwriting Reserves
To meet future obligations in accordance with insurance contracts, MS&AD
sets aside underwriting reserves. It could, therefore, become necessary to
increase underwriting reserves in the event of unforeseen losses due to
significant changes in the business environment, operating conditions, and
other factors.
Data Section
139
MS&AD INSURANCE GROUP HOLDINGS
140
INTEGRATED REPORT 2023
8) Retirement Benefit Expenses and Retirement Benefit Obligations
Retirement benefit expenses and retirement benefit obligations are
calculated based on certain assumptions that include discount rates, future
retirement rates, and mortality rates. However, future retirement benefit
expenses and obligations could change if actual results differ from the
assumptions used, or if it becomes necessary to change the assumptions.
3. SUMMARY OF BUSINESS RESULTS
In fiscal 2022, although the global economy showed signs of recovery due to
the relaxing of COVID-19 restrictions, the economic outlook remained
uncertain due to the increased upward pressure on commodity prices and the
impact of monetary policies by various countries aimed at curbing inflation
arising from the rising costs of raw materials and other factors caused by the
protracted Ukraine conflict.
The Medium-Term Management Plan (2022-2025), which started from
this fiscal year, is aiming for “Growing Together with Society as a Platform
provider of risk solution.” We have been working to become a “corporate
group that supports a resilient and sustainable society” under the three basic
strategies of “Value (value creation),” “Transformation (business
transformation),” and “Synergy (Group synergy).”
Value
(Value creation)
Through the global implementation of “CSV × DX
(*1)
,” the following
initiatives were undertaken with the aim of providing value to all
stakeholders and enhancing corporate value, as well as increasing
the profitability of our business, products, and services and
strengthening our earnings base.
[Details of Initiatives]
• Development of products and services that come before and after
coverage and protection, such as “Accident Risk AI
Assessment
(*2)
,” and establishment of a sales structure
• Implementation of measures to improve and expand profitability of
the domestic non-life insurance business, including premium rate
revisions for fire insurance, development of disaster prevention and
mitigation services, and sales expansion of strategic products for
casualty insurance
Transformation
(Business
transformation)
The following initiatives were undertaken with the aim of transforming
the business structure and adapting to changes in the business
environment through the creation of new businesses and other
measures, as well as transforming the business, product, and risk
portfolios to build a stable earnings base.
[Details of Initiatives]
• Business investment in the U.S. MGA
(*3)
market in international
operations and expansion of domestic life insurance business and
new business areas
• Using DX to establish new business sectors and developing more
advanced risk consulting services with InterRisk Research &
Consulting playing a central role
• Reducing strategic equity holdings by 206.6 billion yen, exceeding
the revised target (150 billion yen) for FY2022
Synergy
(Group
synergy)
The following initiatives were undertaken with the aim of realizing
further growth by strengthening collaboration by leveraging the
diversity of the Group, improving productivity by deepening Group
standardization, collaboration, and integration, and realizing
synergies on a global basis.
[Details of Initiatives]
• Implementation of the “One Platform Strategy” to improve
quality and productivity in areas such as products, claims
services, and administrative work for Mitsui Sumitomo Insurance
and Aioi Nissay Dowa Insurance
• Sales promotion of the products of Mitsui Sumitomo Primary
Life through the sales network of Mitsui Sumitomo Aioi Life, and
the expansion of concurrent selling of life insurance and non-life
insurance products
• Global synergies including the sharing and mutual use of
expertise and skills of Group companies in Japan and overseas
through the TENKAI Project
(*4)
and other initiatives
(*1) CSV (Creating Shared Value) × DX (Digital Transformation)
An initiative to achieve sustainable growth and increase corporate value by improving
productivity and competitiveness through a combination of CSV (Creating Shared Value
with Society) and DX (Digital Transformation).
(*2) Accident Risk AI Assessment
A service for local governments that uses AI to quantify the risk of traffic accidents for each
location (road segment and intersection) and visualize it on a map.
(*3) MGA (Managing General Agent)
An agent authorized by an insurance company to underwrite insurance and to certify and
assess damage amount, in addition to insurance solicitation.
(*4) TENKAI Project
An initiative where, to maximize the synergy of our Group, our know-how, technology, and
services are deployed both domestically and internationally for accelerating our efforts to
enhance our corporate value and sustainable growth.
As a result of these efforts, earnings for the current consolidated fiscal year
to date are as follows.
Ordinary income was ¥5,251.2 billion, due to underwriting income of
¥4,482.4 billion, investment income of ¥745.7 billion and other ordinary
income of ¥23.1 billion. At the same time, ordinary expenses amounted to
¥5,020.1 billion, including ¥4,064.2 billion in underwriting expenses, ¥195.6
billion in investment expenses, ¥739.3 billion in operating expenses and
general and administrative expenses, and other ordinary expenses
amounting to ¥20.8 billion.
As a result, ordinary profit for the current fiscal year was ¥231.1 billion,
reflecting a year-on-year decrease of ¥159.3 billion. After adjustments to
ordinary profit mainly for extraordinary losses and corporate and residence
tax, net income attributable to owners of the parent for the current fiscal
year was ¥161.5 billion, reflecting a year-on-year decrease of ¥101.2 billion.
[Key Consolidated Financial Indicators]
(Yen in millions)
FY2021 FY2022 Change
Change (%)
Net premiums written ¥3,609,052 ¥3,934,473 ¥325,421
9.0
Life insurance premiums 520,037 453,578 (66,458)
-12.8
Ordinary profit 390,499 231,113 (159,386)
-40.8
Net income attributable to
owners of the parent
262,799 161,530 (101,268)
-38.5
Net premiums written increased by ¥325.4 billion to ¥3,934.4 billion from
the previous fiscal year, mainly due to increases in the domestic non-life
insurance business because of fire insurance and other factors, and in the
international business due to increases of revenues in Asia, Europe, and the
Americas, as well as the impact of foreign exchange rates and other factors.
Life insurance premiums decreased by ¥66.4 billion from the previous
consolidated fiscal year to ¥453.5 billion, mainly due to an increase in
refunds of foreign currency–denominated policies that reached the
investment target due to the depreciation of the yen and other factors
despite an increase in insurance premium revenues.
Ordinary profit decreased by ¥159.3 billion from the previous
consolidated fiscal year to ¥231.1 billion, mainly due to an increase in
automobile accidents, natural disasters in Japan, an increase in insurance
proceeds and benefits due to the spread of COVID-19, a decrease in
investment profit/loss in the international business, and other factors.
After adjustments to ordinary profit mainly for extraordinary income,
income taxes, and resident taxes, net income attributable to owners of the
parent decreased by ¥101.2 billion from the previous consolidated fiscal
year to ¥161.5 billion.
Insurance premiums and claims by insurance type are as follows.
a. Direct Premiums Written (including Deposit Premiums from Policyholders)
(Yen in millions)
Lines of Insurance
Previous consolidated scal year
(From April 1, 2021, to March 31, 2022)
Current consolidated scal year
(From April 1, 2022, to March 31, 2023)
Amount
Composition
ratio
(%)
Year-on-
year
increase/
decrease
(-) Rate (%)
Amount
Composition
ratio
(%)
Year-on-
year
increase/
decrease
(-) Rate (%)
Fire and Allied ¥784,527 20.3 3.5 ¥877,573 21.2 11.9
Marine 201,365 5.2 5.6 254,672 6.2 26.5
Personal Accident 284,581 7. 3 (3.0) 296,170 7.2 4.1
Voluntary Automobile 1,634,984 42.2 2.6 1,672,541 40.4 2.3
Compulsory
Automobile Liability 276,076 7.1 ( 7.0) 279,102 6.7 1.1
Other 692,15 3 17.9 4.2 756,927 18.3 9.4
Total ¥3,873,688 100.0 2.1 ¥4,136,987 100.0 6.8
Deposit premiums
from policyholders
included 52,185 1.3 (28.2) 41,359 1.0
(
20.7
)
Notes: 1. The figures represent amounts after the elimination of internal transactions between
segments.
2. Direct premiums written (including deposit premiums from policyholders) are the
premiums from policyholders minus the surrender benefits and other refunds to
policyholders. (Includes deposit premiums from policyholders for savings-type
insurance.)
b. Net Premiums Written
(Yen in millions)
Lines of Insurance
FY2021 FY2022
Amount
Share
(%)
Change
(%) Amount
Share
(%)
Change
(%)
Fire and Allied ¥620,531 17.2 4.7
¥725,039 18.4 16.8
Marine 159,293 4.4 5.7
199,375 5.1 25.2
Personal Accident 232,288 6.5 2.6
247,630 6.3 6.6
Voluntary
Automobile 1,679,430 46.5 2.4
1,730,383 44.0 3.0
Compulsory
Automobile
Liability 281,282 7.8 (6.5)
275,732 7.0 (2.0)
Other 636,224 17.6 7.7
756,310 19.2 18.9
Total ¥3,609,052 100.0 3.1
¥3,934,473 100.0 9.0
Note: The figures represent amounts after the elimination of internal transactions between
segments.
c. Net Claims Paid
(Yen in millions)
Lines of Insurance
FY2021 FY2022
Amount
Share
(%)
Change
(%) Amount
Share
(%)
Change
(%)
Fire and Allied ¥412,825 21.2 9.6
¥510,906 22.8 23.8
Marine 66,480 3.4 (11.9)
85,586 3.8 28.7
Personal
Accident 111,059 5.7 (1.7)
154,745 6.9 39.3
Voluntary
Automobile 844,643 43.4 4.7
952,324 42.5 12.7
Compulsory
Automobile
Liability 19 7,440 10.1 (8.2)
183,660 8.2 (7.0)
Other 314,525 16.2 (0.2)
353,975 15.8 12.5
Total ¥1,946,975 100.0 2.4
¥2,241,198 100.0 15.1
Note: The figures represent amounts after the elimination of internal transactions between
segments.
Recognition, analysis, and reviewed contents for financial performance and
operating results by segment are as follows.
1) Domestic Non-Life Insurance Business (Mitsui Sumitomo Insurance
Co., Ltd.)
2) Domestic Non-Life Insurance Business (Aioi Nissay Dowa Insurance
Co., Ltd.)
Mitsui Sumitomo Insurance Co., Ltd., and Aioi Nissay Dowa Insurance Co.,
Ltd., which are core non-life insurance companies of our Group, developed
and provide products and services that contribute to CSV in order to
contribute to solving social issues such as climate change and growing
together with society. Mitsui Sumitomo Insurance Co., Ltd., optionally
added a dedicated rear camera to provide clear images of the rear of the
vehicle to its voluntary automobile insurance policy (drive recorder voluntary
automobile insurance)*1 to meet the needs of society, and provides
products and services that contribute to the preservation and restoration of
natural capital and biodiversity, including the release of the Special cover for
additional expenses against marine pollution which covers the cost of
restoration activities for damage to the natural environment in the event of a
ship accident. Aioi Nissay Dowa Insurance Co., Ltd., provided “traffic safety
EBPM support services*2” to assist local governments in planning and
verifying the effectiveness of traffic safety by utilizing accumulated
automobile driving data. In addition, it provided products and services that
contribute to solving social and local issues, such as the launch of “Wan
Nyan de Kyun,” a pet insurance policy that provides the industry’s extremely
wide compensation and preventive services for injuries and illnesses. In
addition, the two companies jointly launched the “Disaster Countermeasures
Support Insurance,” which supports businesses’ social contribution activities
in the event of disasters such as typhoons, floods, and earthquakes. To help
realize a decarbonized society, was the first domestic non-life insurance
company to develop and provide a “special agreement for the replacement
cost of electric vehicles, etc. ,” which covers the cost of acquiring an electric
vehicle, etc., as an alternative vehicle in the event of major damage to the
contracted vehicle.
*1 Voluntary automobile insurance policy to watch (premium drive recorder)
Voluntary automobile insurance provides services to prevent accidents and reduce the
impact of accidents and support recovery using communication-based drive recorders with
functions such as “360-degree photography” and the “use of a drive recorder outside the
vehicle (photographing and talking ).”
*2 Traffic safety EBPM support service
A service that objectively estimates “dangerous intersections” based on telematics data (car
driving data such as rapid deceleration) held by local governments and prefectural police
when implementing traffic policies such as reviewing school routes and installing signs, and
then identifies “reasons for the danger” through detailed analysis of the intersections and
proposes “optimal traffic safety measures.” EBPM means “evidence-based policy making.”
1) Domestic Non-Life Insurance Business (MSI)
Net premiums written increased by ¥50.5 billion to ¥1,629.8 billion, mainly
due to increased sales of fire insurance and marine insurance. On the other
hand, net loss paid increased by ¥113.3 billion from the previous fiscal year
to ¥944.5 billion, mainly due to increases in fire insurance and voluntary
automobile insurance. As a result, the net loss ratio was 64.3%, up 5.3
percentage points from the previous year. The net expense ratio decreased
0.5 percentage point from the previous year to 32.5% due to an increase in
net premiums written.
Insurance underwriting gains and losses, which are calculated by
adding or subtracting deposit premiums from policyholders, maturity
refunds to policyholders, provision for outstanding claims, reversal of policy
reserve, and similar items, decreased by ¥56.9 billion from the previous
fiscal year to a loss of ¥15.9 billion, mainly due to an increase in incurred
loss from natural disasters in Japan (sum of net loss paid and provisions to
reserves for outstanding claims).
A summary of asset management is as follows.
Investment income as a residual amount after deducting investment
gains used for maturity refunds to savings-type insurance policyholders and
other usage increased by 24.4 billion from the previous fiscal year to ¥226.1
billion. This was mainly because interest and dividend income was up ¥7.7
billion from the previous year to ¥134.9 billion, and gains on sales of
securities increased by ¥19.3 billion from the previous year to ¥110.7 billion.
On the other hand, asset management expenses increased by ¥11.6 billion
Data Section
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INTEGRATED REPORT 2023
from the previous year to ¥52 billion, mainly due to an increase in
impairment losses on securities of ¥18.7 billion.
As a result, ordinary profit decreased by ¥43 billion from the previous
fiscal year to ¥141.2 billion. Net income decreased by ¥37.8 billion from the
previous year to ¥107.8 billion.
2) Domestic Non-Life Insurance Business (ADI)
Net premiums written increased by ¥44.2 billion to ¥1,335.5 billion,
mainly due to increased sales of fire insurance and voluntary automobile
insurance. On the other hand, net loss paid increased by ¥115.1 billion from
the previous fiscal year to ¥809.3 billion, mainly due to increases in voluntary
automobile insurance and fire insurance. As a result, the net loss ratio was
66.6%, up 6.8 percentage points from the previous year. The net expense
ratio decreased by 0.4 percentage point from the previous year to 34.6%
due to an increase in net premiums written and other factors.
Insurance underwriting profits reflecting deposit premiums from
policyholders, maturity refunds to policyholders, provision for outstanding
claims, and reversal of policy reserve, among other factors, decreased by
¥29.8 billion from the previous fiscal year to ¥0.6 billion, mainly due to an
increase in incurred loss from automobile accidents and natural disasters in
Japan (sum of net loss paid and provisions to reserves for outstanding
claims).
A summary of asset management is as follows.
Investment income as a residual amount after deducting investment
gains used for maturity refunds to savings-type insurance policyholders and
other usage increased by ¥29 billion from the previous fiscal year to ¥100.4
billion. This was mainly because interest and dividend income increased by
¥6.8 billion from the previous year to ¥63.6 billion, and gains on sales of
securities grew by ¥26.2 billion from the previous year to ¥50 billion. On the
other hand, asset management expenses increased by ¥14.5 billion from
the previous year to ¥27.1 billion, mainly due to an increase in derivative
transaction expenses.
As a result, ordinary profit decreased by ¥14.2 billion from the previous
fiscal year to ¥66.7 billion. Net income decreased by ¥10.7 billion from the
previous year to ¥43.1 billion.
3) Domestic Non-Life Insurance Business (Mitsui Direct General)
Mitsui Direct General Insurance Co., Ltd., has launched a new product that
embodies the brand concept of “strong and gentle”: “Strong and Gentle
Automobile Insurance,” which is both “strong” for compensation and claims
handling and “gentle” for satisfaction thanks to customers choosing
products by themselves at reasonable premiums.
The business performance of Mitsui Direct General Insurance Co., Ltd.,
was as follows.
Net premiums written fell ¥0.8 billion from the previous fiscal year to
¥34.5 billion. On the other hand, net loss paid increased by ¥0.5 billion from
the previous year to ¥20.5 billion. The net loss ratio was 67.5%, up 3.1
percentage points from the previous year.
Commission and collection expenses, as well as the general and
administrative expenses related to insurance underwriting, increased by
¥1.4 billion from the previous fiscal year to ¥13 billion. The net expense ratio
was 37.9%, up 4.9 percentage points from the previous year.
Insurance underwriting gains and losses fell ¥1.1 billion from the
previous fiscal year to ¥0.3 billion. Net income reflecting extraordinary profit/
(loss), corporate taxes, resident taxes, and other taxation, amounted to ¥0.8
billion.
As a result, net income (segment income) after considering equity
ownership increased ¥0.1 billion from the previous year to ¥0.8 billion.
Note: Net loss ratio = (net claims paid + loss adjustment expenses) ÷ net premiums written
Net expense ratio = (commissions and collection expenses + operating expenses and
general and administrative expenses for underwriting) ÷ net premiums written
4) Domestic Life Insurance Business (MSI Aioi Life)
At Mitsui Sumitomo Aioi Life Insurance Co., Ltd., we have created a new
type of medical insurance for hospital admissions and surgeries that
provides coverage for receiving a lump sum payment at the time of hospital
admission (including one-day hospitalization). We have also added a special
policy clause for cancer insurance that eliminates the need to pay premiums
when cancer is definitely diagnosed to improve the attractiveness of our
products. In addition to providing coverage through insurance products, we
have released a new healthcare service brand, MSA Care, which aims to
provide total support for the health of customers by responding to
“Prevention and early detection and prevention of worsening and
recurrence” and providing insurance products and healthcare services in a
unified manner.
The business performance of Mitsui Sumitomo Aioi Life Insurance Co.,
Ltd., was as follows.
Premiums and other income fell ¥14.4 billion from the previous fiscal
year to ¥489 billion, mainly due to a decrease in individual insurance
premiums.
Ordinary profit decreased by ¥11.1 billion from the previous fiscal year
to ¥27.8 billion, mainly due to an increase in claims for benefits due to
COVID-19. Net income decreased by ¥8.3 billion from the previous year to
¥12.7 billion.
5) Domestic Life Insurance Business (MSI Primary Life)
To improve the attractiveness of products that help clients build assets and
extend the life of their assets, Mitsui Sumitomo Primary Life Insurance
Company, Limited, has increased the number of options available through
the new guarantee-focused course and the investment-focused course in
“Minori 10 Years,” an index-linked pension plan designed to provide a sense
of pleasure while protecting pension resources. In addition, we completely
revised the “Primary Life My Page” Web service for customers and provided
highly convenient services through a new screen design and enhanced
service content.
The business performance of Mitsui Sumitomo Primary Life Insurance
Co., Ltd., was as follows.
Premiums and other income increased by ¥424.2 billion to ¥1,349.8
billion from the previous fiscal year due to the improvement of the market
environment, the revision of core products, and active non-face-to-face
sales and training activities.
Ordinary profit decreased by ¥56.7 billion to ¥31 billion compared with
the previous fiscal year due to a reaction to the decrease in the burden of
provision of policy reserve in the previous fiscal year due to rising interest
rates and the burden of provision of policy reserve for foreign currency–
denominated insurance newly subject to the standard policy reserve system.
Net income decreased by ¥33.2 billion from the previous year to ¥19.7
billion.
6) International Business (Overseas Insurance Subsidiaries)
In our Group, while curbing insurance underwriting for overseas natural
catastrophe risks, we promoted initiatives to expand and stabilize the
Group’s profits through the growth of our international businesses. While
making business investments for further business expansion, we also
worked to strengthen the governance of overseas entities and the
management of overseas natural catastrophe risks and other risks.
Mitsui Sumitomo Insurance Co., Ltd., acquired Transverse Insurance
Group, LLC, to expand its presence in the U.S. insurance market to capture
the growing MGA market in the United States. In addition, the MS Amlin
business continued to improve underwriting results by controlling natural
catastrophe risks, carefully selecting underwriting, and raising rates. As a
result, despite the impacts of the Russia-Ukraine conflict, the damage
caused by Hurricane Ian, and other natural catastrophe, the MS Amlin
business became profitable, and its profitability was strengthened. In the
Asian region, we continued to develop the retail market by utilizing digital
technologies, collaborating with platformers, and developing the corporate
market by strengthening regional cooperation taking advantage of the
strengths of our respective bases such as MS First Capital Insurance
Limited, thereby continuing to achieve stable profits.
Aioi Nissay Dowa Insurance Co., Ltd., promoted the telematics and
mobility service business centered on five regions: Japan, the United States,
Europe, China, and Southeast Asia. In Europe, we used an AI model jointly
developed with Mind Foundry to improve underwriting results by setting
rates, streamlining insurance payment operations, and implementing other
measures. In addition, in Thailand, the cumulative number of sales of
voluntary automobile insurance reflecting driving behavior exceeded
200,000. As an advanced example of data utilization, the company was
awarded the Insurtech Initiative of the Year—Thailand at the Insurance Asia
Awards 2022. Its innovation initiatives using telematics technology were
highly praised and contributed to the improvement of its presence in the
Asian region.
Net premiums written increased by ¥231.1 billion from the previous
fiscal year to ¥934.1 billion, mainly due to increases in sales in Asia, Europe,
and the Americas, as well as the impact of foreign exchange rates.
Ordinary profit decreased by ¥30.5 billion from the previous fiscal year
to ¥9 billion, mainly due to the recording of estimated claims related to
Russia’s invasion of Ukraine, a decrease in investment profit/loss due to
fluctuations in financial markets, and a decrease in equity in net income of
associates of overseas life insurance affiliates.
Net income (segment income) after considering equity ownership
decreased ¥8.8 billion from the previous consolidated fiscal year to ¥15.7
billion.
4. CASH FLOW ANALYSIS
With regard to cash flows in the fiscal year under review, net cash flows
provided by operating activities increased by ¥560.6 billion over the previous
fiscal year to ¥236.7 billion, due in part to a rebound from an increase in
foreign currency insurance contracts returns of Mitsui Sumitomo Primary
Life Insurance Co., Ltd. in the previous fiscal year. Net cash flows from
investing activities decreased by ¥115.9 billion over the previous fiscal year
to ¥(71.9) billion, due in part to a decrease in proceeds from sales and
redemption of securities, despite a decrease in expenditure on the purchase
of securities. In addition, net cash flows provided by financial activities
decreased by ¥20.7 billion over the previous fiscal year to ¥58.5 billion, due
in part to an increase in expenditure on redemption of corporate bonds,
despite an increase in proceeds from the issuance of corporate bonds. As a
result, cash and cash equivalents at the end of the fiscal year under review
have increased by ¥261.7 billion from the end of the previous fiscal year to
¥2,256.2 billion.
5. BUSINESS ENVIRONMENT AND ISSUES TO BE
ADDRESSED FROM THE BUSINESS AND FINANCIAL
PERSPECTIVES
The global economy, including Japan’s, is expected to sustain a moderate
pickup in economic conditions, while there are concerns about the impact
of global monetary tightening, downside risks from price increases, and
other areas of uncertainty.
The insurance industry is required to play a role as a social
infrastructure that responds to various challenges and enhances the
resilience of society, even in an uncertain environment such as the frequent
occurrence of large-scale natural disasters, the transition to a society with
COVID-19, and the rise of geopolitical risks.
Under such circumstances, FY2023 is the second year of the Medium-
Term Management Plan and our Group continues to pursue the theme of
“Growing Together with Society as a Platform Provider of Risk Solutions,”
and to realize a corporate group that supports a resilient and sustainable
society, works on our business based on the basic strategies of “Value
(value creation),” “Transformation (business reforms),” and “Synergy
(demonstration of Group synergy)” and the foundations of “Sustainability,”
“Quality,” “Human assets,” and “ERM” that support the basic strategies.
Our policies by main business area are as follows.
In the domestic non-life insurance business, we will expand our top line
and generate stable profits by taking advantage of our strengths such as
“three distinctive non-life insurance companies,” “Japan’s largest sales
network,” and “our close relationships with Japan’s leading corporate
groups.” We will continue to work to improve the profitability of fire insurance
and improve profitability overall by promoting the “One Platform Strategy”
and other initiatives to reduce business expenses.
In the domestic life insurance business, we will enhance customer
approaches and expand earnings by leveraging the strengths of Mitsui
Sumitomo Aioi Life Insurance Co., Ltd., and Mitsui Sumitomo Primary Life
Insurance Company, Limited, in their channels (non-life insurance agents
and sales through financial institutions) and increase profits and develop
asset building markets through their cooperation to achieve sustainable
growth.
In the international business, we will steadily promote initiatives to
strengthen profitability, such as the expansion of underwriting of high-
profitability policies in the MS Amlin business, for which profitability is
recovering; penetration in the U.S. MGA market using Transverse; and the
strengthening of the retail business in Asia. In addition, we will make
business investments in the United States and Asia, strengthen global
synergies, and take other measures. Moreover, to improve capital efficiency,
we will monitor profitability and growth and work to improve international
business management.
In the risk-related services business, with InterRisk Research &
Consulting at the core of the Group, we will strengthen our risk management
services, such as services and consulting before and after compensation
and protection using digital data to create new business opportunities.
Our Group will continue to enhance capital efficiency by improving
profitability in each of these business areas and strive to improve
management and corporate value with a focus on capital costs and stock
prices.
In addition, based on the three priority sustainability issues of “co-
existence with the global environment,” “safe and secure society,” and
“happiness of diverse people,” we will contribute to the sustainability of
society and work toward the long-term growth of our Group.
6. SOLVENCY MARGIN RATIO
The solvency margin ratios of our company and its domestic insurance
subsidiaries are as follows.
Insurance companies build reserves to cover payments of insurance
claims.
Moreover, they must secure adequate ability to cover payments even
in the event of a crisis beyond the scale of what is ordinarily forecast, such
as a major disaster or a significant decline in asset prices. An insurance
company’s payment capability, including capital and reserves, is known as
the solvency margin total amount, “(A)” in the tables below, and its risk
amount, “(B)” in the tables below, reflects such a risk exceeding ordinary
forecasts. The ratio of (A) to (B) is an index called the solvency margin ratio,
“(C)” in the tables below, which is calculated based on the Insurance
Business Act.
The solvency margin ratio is an objective decision-making index used
by government agencies for monitoring insurance companies and insurance
holding companies. A solvency margin ratio of 200% or higher is taken to
indicate that an insurance company has sufficient capability to pay insurance
claims and other obligations.
Data Section
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MS&AD INSURANCE GROUP HOLDINGS
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INTEGRATED REPORT 2023
1) MS&AD
Consolidated Solvency Margin Ratio
(Yen in millions)
FY2021 FY2022
(A) Solvency margin total amount ¥5,778,630 ¥5,234,013
(B) Risk amount 1,347,114 1,345,950
(C) Solvency margin ratio (A/(B × 1/2)) × 100 857.9% 777.7%
Note: The consolidated solvency margin ratio is calculated based on the provisions in Article
210–11, 3 and Article 210–11, 4 of the Ordinance for Enforcement of the Insurance
Business Act and in the Financial Services Agency (FSA) Public Ministerial Announcement
No. 23 of 2011.
The solvency margin ratio was 777.7%, down 80.2 percentage points from
the end of the previous consolidated fiscal year. This was mainly because the
total solvency margin fell ¥544.6 billion from the end of the previous
consolidated fiscal year principally due to a decline in the fair value of shares
held.
2) MSI
Non-Consolidated Solvency Margin Ratio
(Yen in millions)
FY2021 FY2022
(A) Solvency margin total amount ¥3,598,612 ¥3,405,349
(B) Risk amount 99 6,14 4 995,234
(C) Solvency margin ratio (A/(B × 1/2)) × 100 722.5% 684.3%
Note: The non-consolidated solvency margin ratio is calculated based on the provisions in
Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act and
Article 50 of the Notification of the Ministry of Finance 1996.
The solvency margin ratio was 684.3%, down 38.2 percentage points from
the end of the previous fiscal year. This was mainly because the total solvency
margin dropped ¥193.2 billion from the end of the previous fiscal year
principally due to the early redemption of subordinated bonds and a decrease
in net unrealized gains/(losses) on investments in securities.
3) Aioi Nissay Dowa Insurance Co., Ltd.
Non-consolidated solvency margin ratio
(Yen in millions)
FY2021 FY2022
(A) Total solvency margin ¥1,3 9 6,16 0 ¥1,327,493
(B) Total risk 368,045 319,545
(C) Solvency margin ratio [(A )/ {(B) × 1/2}] × 100
758.6% 830.8%
Note: See the note for MSI “a. Non-Consolidated Solvency Margin Ratio” regarding the
non-consolidated solvency margin ratio calculation method.
The solvency margin ratio increased 72.2 percentage points from the end of
the previous fiscal year to 830.8%, mainly due to a decrease in the amount
equivalent to the risk of major disasters and a decrease of ¥48.4 billion in the
total risk compared with the end of the previous fiscal year.
4) Mitsui Direct General Insurance Co., Ltd.
Non-consolidated solvency margin ratio
(Yen in millions)
FY2021 FY2022
(A) Total solvency margin ¥17,0 01 ¥17,853
(B) Total risk 5,19 9 5,060
(C) Solvency margin ratio [(A) / {(B) × 1/2}] × 100
653.9% 705.5%
Note: See the note for MSI “a. Non-Consolidated Solvency Margin Ratio” regarding the
non-consolidated solvency margin ratio calculation method.
The solvency margin ratio was 705.5%, up 51.6 percentage points from the
end of the previous fiscal year. This was mainly because the total solvency
margin increased ¥0.8 billion from the end of the previous fiscal year
principally due to an increase in shareholders’ equity as a result of net income.
5) Mitsui Sumitomo Aioi Life Insurance Co., Ltd.
Non-consolidated solvency margin ratio
(Yen in millions)
FY2021 FY2022
(A) Total solvency margin ¥398,033 ¥338,880
(B) Total risk 69,10 5 69,474
(C) Solvency margin ratio [(A) / {(B) × 1/2}] × 100
1,151.9% 975.5%
Note: See the note for MSI “a. Non-Consolidated Solvency Margin Ratio” regarding the
non-consolidated solvency margin ratio calculation method.
The solvency margin ratio was 975.5%, down 176.4 percentage points from
the end of the previous fiscal year. This was mainly because the total solvency
margin fell ¥59.1 billion from the end of the previous year principally due to a
decrease in net unrealized gains/(losses) on investments in securities (before
tax effects) because of a decline in the fair value of bonds held to maturity.
6) Mitsui Sumitomo Primary Life Insurance Company, Limited
Non-consolidated solvency margin ratio
(Yen in millions)
FY2021 FY2022
(A) Total solvency margin ¥739,516 ¥683,942
(B) Total risk 135,086 152,103
(C) Solvency margin ratio [(A) / {(B) × 1/2}] × 100
1,094.8% 899.3%
Note: See the note for MSI “a. Non-Consolidated Solvency Margin Ratio” regarding the
non-consolidated solvency margin ratio calculation method.
The solvency margin ratio was 899.3%, down 195.5 percentage points from
the end of the previous fiscal year. This was mainly because the total solvency
margin fell ¥55.5 billion from the end of the previous year principally due to a
decrease in net unrealized gains/(losses) on investments in securities (before
tax effects) because of a decline in the fair value of bonds held to maturity.
Data Section
145
MS&AD INSURANCE GROUP HOLDINGS
146
INTEGRATED REPORT 2023
Premiums Written and Net Claims Paid —Non-Life Insurance (Unaudited)
(Yen in millions)
(US$ in millions)
FY2018 FY2019 FY2020 FY2021
FY2022 FY2022
Lines of Insurance
Amount
Change
(%)
Share
(%) Amount
Change
(%)
Share
(%) Amount
Change
(%)
Share
(%) Amount
Change
(%)
Share
(%)
Amount
Change
(%)
Share
(%) Amount
Fire and Allied
¥677,543 8.1 18.0 ¥734,573 8.4 19.2 ¥757,785 3.2 20.0 ¥784,527 3.5 20.3 ¥877,573 11.9 21.2 $6,549
Marine
184,578 9.5 4.9 185,068 0.3 4.8 190,705 3.0 5.0 201,365 5.6 5.2 254,672 26.5 6.2 1,901
Personal Accident
321,651 0.3 8.6 311,984 3.0 8.2 293,409 6.0 7.7 284,581 3.0 7.3 296,170 4.1 7.2 2,210
Voluntary Automobile
1,550,037 0.3 41.2 1,570,344 1.3 41.0 1,592,952 1.4 42.0 1,634,984 2.6 42.2 1,672,541 2.3 40.4 12,482
Compulsory Automobile Liability
346,258 0.8 9.2 347,736 0.4 9.1 296,911 14.6 7.8 276,076 7.0 7.1 279,102 1.1 6.7 2,083
Other
681,779 6.0 18.1 677,583 0.6 17.7 664,078 2.0 17.5 692,153 4.2 17.9 756,927 9.4 18.3 5,649
Total
¥3,761,848 3.1 100.0 ¥3,827,289 1.7 100.0 ¥3,795,842 0.8 100.0 ¥3,873,688 2.1 100.0 ¥4,136,987 6.8 100.0 $30,873
Deposit premiums from policyholders
¥80,235 7.1 2.1 ¥75,553 5.8 2.0 ¥72,635 3.9 1.9 ¥52,185 28.2 1.3 41,359 (20.7) 1.0 309
(Yen in millions)
(US$ in millions)
FY2018 FY2019 FY2020 FY2021
FY2022 FY2022
Lines of Insurance
Amount
Change
(%)
Share
(%) Amount
Change
(%)
Share
(%) Amount
Change
(%)
Share
(%) Amount
Change
(%)
Share
(%)
Amount
Change
(%)
Share
(%) Amount
Fire and Allied
¥558,427 0.9 16.0 ¥589,897 5.6 16.5 ¥592,798 0.5 16.9 ¥620,531 4.7 17.2 ¥725,039 16.8 18.4 $5,411
Marine
152,333 7.0 4.3 147,814 3.0 4.1 150,662 1.9 4.3 159,293 5.7 4.4 199,375 25.2 5.1 1,488
Personal Accident
261,273 8.7 7.5 246,806 5.5 6.9 226,349 8.3 6.5 232,288 2.6 6.5 247,630 6.6 6.3 1,848
Voluntary Automobile
1,593,578 0.4 45.6 1,632,423 2.4 45.7 1,639,651 0.4 46.8 1,679,430 2.4 46.5 1,730,383 3.0 44.0 12,913
Compulsory Automobile Liability
337,844 4.0 9.6 347,214 2.8 9.7 300,996 13.3 8.6 281,282 6.5 7.8 275,732 (2.0) 7.0 2,058
Other
594,114 5.0 17.0 609,575 2.6 17.1 590,537 3.1 16.9 636,224 7.7 17.6 756,310 18.9 19.2 5,644
Total
¥3,497,572 1.6 100.0 ¥3,573,732 2.2 100.0 ¥3,500,996 2.0 100.0 ¥3,609,052 3.1 100.0 ¥3,934,473 9.0 100.0 $29,362
(Yen in millions)
(US$ in millions)
FY2018 FY2019 FY2020 FY2021
FY2022 FY2022
Lines of Insurance
Amount
Change
(%)
Share
(%) Amount
Change
(%)
Share
(%) Amount
Change
(%)
Share
(%) Amount
Change
(%)
Share
(%)
Amount
Change
(%)
Share
(%) Amount
Fire and Allied
¥526,294 39.1 24.7 ¥405,830 22.9 20.0 ¥376,673 7.2 19.8 ¥412,825 9.6 21.2 ¥510,906 23.8 22.8 $3,813
Marine
83,445 1.4 3.9 81,804 2.0 4.1 75,439 7.8 4.0 66,480 11.9 3.4 85,586 28.7 3.8 639
Personal Accident
110,904 4.4 5.2 114,146 2.9 5.6 113,025 1.0 5.9 111,059 1.7 5.7 154,745 39.3 6.9 1,155
Voluntary Automobile
872,529 3.6 40.9 880,237 0.9 43.4 806,808 8.3 42.4 844,643 4.7 43.4 952,324 12.7 42.5 7,107
Compulsory Automobile Liability
247,757 2.1 11.6 233,215 5.9 11.5 215,043 7.8 11.3 197,440 8.2 10.1 183,660 (7.0) 8.2 1,371
Other
291,224 6.4 13.7 311,978 7.1 15.4 315,258 1.1 16.6 314,525 0.2 16.2 353,975 12.5 15.8 2,642
Total
¥2,132,155 10.2 100.0 ¥2,027,212 4.9 100.0 ¥1,902,248 6.2 100.0 ¥1,946,975 2.4 100.0 ¥2,241,198 15.1 100.0 $16,725
(a) Direct Premiums Written (including deposit premiums from policyholders)
(b) Net Premiums Written
(c) Net Claims Paid
DIRECT PREMIUMS WRITTEN (FY2022)
NET PREMIUMS WRITTEN (FY2022)
NET CLAIMS PAID (FY2022)
Voluntary Automobile,
40.4%
Personal
Accident,
7.2%
Marine, 6.2%
Fire and Allied, 21.2%
Other, 18.3%
Compulsory
Automobile
Liability, 6.7%
Voluntary Automobile,
44.0%
Personal
Accident,
6.3%
Marine, 5.1%
Fire and Allied, 18.4%
Other, 19.2%
Compulsory
Automobile
Liability, 7.0%
Voluntary Automobile,
42.5%
Personal
Accident,
6.9%
Marine, 3.8%
Fire and Allied, 22.8%
Other, 15.8%
Compulsory
Automobile
Liability, 8.2%
Total ¥4,136.9 Billion
Total ¥3,934.4 Billion
Total ¥2,241.1 Billion
Data Section
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MS&AD INSURANCE GROUP HOLDINGS
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INTEGRATED REPORT 2023
Policies in Force and New Policies — Domestic Life Insurance (Unaudited)
(Yen in millions) (US$ in millions)
FY2018 FY2019 FY2020
FY2021
FY2022 FY2022
Amount
Change
(%) Amount
Change
(%) Amount
Change
(%)
Amount
Change
(%)
Amount
Change
(%) Amount
Individual insurance
¥28,117,507 4.6 ¥28,056,161 0.2 ¥27,851,835 0.7 ¥27,814,964 0.1 ¥27,307,492 (1.8) $203,787
Individual annuities
3,094,163 3.6 2,915,890 5.8 3,010,961 3.3 2,836,443 5.8 2,874,667 1.3 21,453
Group insurance
8,554,605 8.8 8,888,416 3.9 9,356,277 5.3 9,618,042 2.8 9,846,741 2.4 73,483
Group annuities
305 1.0 294 3.4 297 0.7 277 6.5 252 (9.1) 2
Notes: 1. The amounts of individual annuities represent the total sum of (a) the funds to be held at the time annuity payments are to commence for the policies for which annuity payments have not yet
commenced and (b) the underwriting reserves for the policies for which annuity payments have commenced.
2. The amounts of group annuities represent the underwriting reserves.
(a) Policies in Force
(Yen in millions) (US$ in millions)
FY2018 FY2019 FY2020
FY2021
FY2022 FY2022
Amount Amount Amount
Amount
Amount Amount
Individual insurance ¥3,847,186 ¥2,773,532 ¥2,434,298
¥2,413,439
¥2,379,027 $17,754
Individual annuities 385,662 177,730 123,035
96,731
357,413 2,667
Group insurance 92,813 96,406 114,945
43,351
68,710 513
Group annuities – – –
–
– –
Note: The amounts of individual annuities represent the funds to be held at the time annuity payments are to commence.
(b) New Policies
Investment Assets and Investments in Securities (Unaudited)
(Yen in millions) (US$ in millions)
FY2021 FY2022 FY2022
Amount Share Amount Share Amount
Deposits and savings ¥2,357,002 9.4 % ¥2,771,949 11.1 % $20,686
Receivables under resale agreements – – – – –
Monetary claims bought 146,489 0.7 142,976 0.6 1,067
Money trusts 2,039,135 8.1 2,082,012 8.3 15,537
Investments in securities 16,959,321 67.7 16,149,338 64.6 120,517
Loans 985,242 3.9 959,497 3.8 7,160
Land and buildings 424,841 1.7 413,872 1.7 3,089
Total investment assets ¥22,912,033 91.5 % ¥22,519,646 90.1 % $168,057
Total assets ¥25,033,846 100.0 % ¥25,000,433 100.0 % $186,570
(a) Investment Assets
(Yen in millions) (US$ in millions)
FY2021 FY2022 FY2022
Amount Share Amount Share Amount
Government bonds ¥4,685,265 27.6 % ¥4,355,273 27.0 % $32,502
Municipal bonds 245,703 1.5 219,781 1.4 1,640
Corporate bonds 1,348,898 8.0 1,298,299 8.0 9,689
Stock 2,905,387 17.1 2,693,594 16.7 20,101
Foreign securities 5,600,327 33.0 5,739,321 35.5 42,831
Other securities 2,173,739 12.8 1,843,066 11.4 13,754
Total ¥16,959,321 100.0 % ¥16,149,338 100.0 % $120,517
Note: “Other securities” consists mainly of investment trusts managed in separate accounts.
(b) Investments in Securities
Data Section
149
MS&AD INSURANCE GROUP HOLDINGS
150
INTEGRATED REPORT 2023
Consolidated Balance Sheets
MS&AD Insurance Group Holdings, Inc. and Its Consolidated Subsidiaries
As of March 31, 2022 and March 31, 2023
Yen in millions US$ in millions
Liabilities and Net Assets
2022 2023 2023
Liabilities
Policy liabilities:
¥18,608,139 ¥18,869,599 $140,818
Outstanding claims
2,467,600 2,682,482 20,019
Underwriting reserves
16,140,539 16,187,116 120,799
Bonds issued
782,902 714,743 5,334
Other liabilities
1,837,250 1,852,392 13,824
Liabilities for pension and retirement benefits
137,710 141,137 1,053
Reserve for retirement benefits for officers
176 133 1
Accrued bonuses for employees
30,006 28,444 212
Reserve for stock payments
– 1,009 8
Reserves under the special laws:
266,381 277,998 2,075
Reserve for price fluctuation
266,381 277,998 2,075
Deferred tax liabilities
45,528 31,177 233
Acceptances and guarantees
23,000 27,524 205
Total liabilities
21,731,096 21,944,159 163,762
Net Assets
Shareholders’ equity:
Common stock
100,534 100,808 752
Capital surplus
553,680 345,144 2,576
Retained earnings
1,251,280 1,305,928 9,746
Treasury stock
159,850 (6,662) (50)
Total shareholders’ equity
1,745,644 1,745,220 13,024
Accumulated other comprehensive income:
Net unrealized gains/(losses) on investments in securities
1,565,167 1,216,563 9,079
Net deferred gains/(losses) on hedges
998 (21,996) (164)
Foreign currency translation adjustments
52,492 79,704 595
Accumulated actuarial gains/(losses) on retirement benefits
1,566 (9,448) (71)
Total accumulated other comprehensive income
1,513,242 1,264,822 9,439
Stock acquisition rights
762 558 4
Non-controlling interests
43,099 45,671 341
Total net assets
3,302,749 3,056,273 22,808
Total liabilities and net assets
¥25,033,846 ¥25,000,433 $186,570
See accompanying notes to consolidated financial statements.
Yen in millions US$ in millions
Assets
2022 2023 2023
Cash, deposits and savings
¥2,357,036 ¥2,771,981 $20,686
Monetary claims bought
146,489 142,976 1,067
Money trusts
2,039,135 2,082,012 15,537
Investments in securities
16,959,321 16,149,338 120,517
Loans
985,242 959,497 7,160
Tangible fixed assets:
487,691 476,711 3,558
Land
227,757 220,903 1,649
Buildings
197,084 192,968 1,440
Lease assets
24,153 28,961 216
Construction in progress
3,895 1,707 13
Other tangible fixed assets
34,800 32,169 240
Intangible fixed assets:
443,159 496,124 3,702
Software
154,047 134,958 1,007
Goodwill
124,946 143,247 1,069
Lease assets
164 213 2
Other intangible fixed assets
163,999 217,704 1,625
Other assets
1,529,465 1,743,777 13,013
Assets for retirement benefits
30,265 36,372 271
Deferred tax assets
40,653 122,822 917
Customers’ liabilities under acceptances and guarantees
23,000 27,524 205
Bad debt reserve
7,614 (8,706) (65)
Total assets
¥25,033,846 ¥25,000,433 $186,570
See accompanying notes to consolidated financial statements.
Data Section
151
MS&AD INSURANCE GROUP HOLDINGS
152
INTEGRATED REPORT 2023
Consolidated Statements of Income
MS&AD Insurance Group Holdings, Inc. and Its Consolidated Subsidiaries
For the years ended March 31, 2022 and March 31, 2023
Consolidated Statements of Comprehensive Income
MS&AD Insurance Group Holdings, Inc. and Its Consolidated Subsidiaries
For the years ended March 31, 2022 and March 31, 2023
Yen in millions US$ in millions
2022 2023 2023
Ordinary income and expenses
Ordinary income: ¥5,132,042 ¥5,251,271 $39,189
Underwriting income: 4,239,589 4,482,431 33,451
Net premiums written 3,609,052 3,934,473 29,362
Deposit premiums from policyholders 52,185 41,359 309
Investment income on deposit premiums from policyholders 35,631 35,591 266
Life insurance premiums 520,037 453,578 3,385
Other underwriting income 22,682 17,428 130
Investment income: 858,664 745,712 5,565
Interest and dividends income 302,615 345,468 2,578
Investment gains on money trusts 170,905 191,350 1,428
Investment gains on trading securities 31,346 – 0
Gains on sales of securities 145,320 195,948 1,462
Gains on redemption of securities 5,526 2,355 18
Gains on derivative transactions – 44,502
332
Investment gains on separate accounts 58,239 –
0
Other investment income 180,341 1,678 13
Transfer of investment income on deposit premiums from policyholders 35,631 (35,591) (266)
Other ordinary income: 33,788 23,127 173
Gains on equity method investments 16,711 2,373 18
Other ordinary income 17,076 20,754 155
Ordinary expenses: 4,741,543 5,020,158 37,464
Underwriting expenses: 3,915,377 4,064,285 30,330
Net claims paid 1,946,975 2,241,198 16,725
Loss adjustment expenses 198,925 207,021 1,545
Commissions and collection expenses 725,349 781,162 5,830
Maturity refunds to policyholders 180,991 165,278 1,233
Dividends to policyholders 58 51 0
Life insurance claims 471,410 531,253 3,965
Provision for outstanding claims 127,190 125,486 936
Provision for underwriting reserves 259,922 1,262 9
Other underwriting expenses 4,554 11,571 86
Investment expenses: 108,908 195,669 1,460
Investment losses on money trusts 14,206 28,438 212
Investment losses on trading securities – 19,631 147
Losses on sales of securities 17,708 65,613 490
Impairment losses on securities 36,254 23,208 173
Losses on redemption of securities 240 360 3
Losses on derivative transactions 28,062 – 0
Investment losses on separate accounts – 32,700 244
Other investment expenses 12,435 25,716 192
Operating expenses and general and administrative expenses 696,390 739,317 5,517
Other ordinary expenses: 20,866 20,886 156
Interest expense 15,482 10,383 77
Provision for bad debts – 1,315 10
Losses on bad debts 137 408 3
Other ordinary expenses 5,247 8,778 66
Ordinary profit 390,499 231,113 1,725
Yen in millions US$ in millions
2022 2023 2023
Net income
¥265,948 ¥165,014 $1,231
Other comprehensive income:
Net unrealized gains/(losses) on investments in securities
62,428 (347,106) (2,590)
Net deferred gains/(losses) on hedges
15,409 (21,362) (159)
Foreign currency translation adjustments
109,422 129,610 967
Accumulated actuarial gains/(losses) on retirement benefits
2,261 (11,042) (82)
Share of other comprehensive income of equity method investments
15,199 3,962 30
Total other comprehensive income
44,521 (245,938) (1,835)
Total comprehensive income
¥310,470 ¥(80,923) $(604)
Allocation:
Comprehensive income attributable to owners of the parent
¥304,979 ¥(86,889) (648)
Comprehensive income attributable to non-controlling interests
5,490 5,966 $45
See accompanying notes to consolidated financial statements.
Yen in millions US$ in millions
2022 2023 2023
Extraordinary income and losses
Extraordinary income: ¥14,990 ¥34,615 $258
Gains on sales of fixed assets 14,990 34,615
258
Extraordinary losses:
35,462 30,271 226
Losses on sales of fixed assets 6,296 10,216
76
Impairment losses on fixed assets 2,684 1,801
13
Provision for reserves under the special laws: 21,405 11,616
87
Provision for reserve for price fluctuation 21,405 11,616
87
Other extraordinary losses 5,076 6,637
50
Income before income taxes 370,027 235,456
1,757
Income taxes - current 72,024 35,737
267
Income taxes - deferred 32,054 34,704
259
Total income taxes 104,078 70,441
526
Net income 265,948 165,014
1,231
Net income attributable to non-controlling interests 3,149 3,484
26
Net income attributable to owners of the parent ¥262,799 ¥161,530
$1,205
See accompanying notes to consolidated financial statements.
Data Section
153
MS&AD INSURANCE GROUP HOLDINGS
154
INTEGRATED REPORT 2023
Consolidated Statements of Changes in Net Assets
MS&AD Insurance Group Holdings, Inc. and Its Consolidated Subsidiaries
For the years ended March 31, 2022 and 2023
2022
(Yen in millions)
Shareholders’ equity
Common stock Capital surplus Retained earnings Treasury stock
Total shareholders’
equity
Beginning balance
¥100,276 ¥553,428 ¥1,078,850 ¥(119,267) ¥1,613,287
Changes for the year:
Issuance of new shares
258 258 516
Dividends paid
(90,369) (90,369)
Net income attributable to owners of the
parent
262,799 262,799
Repurchase of treasury stock
(40,847) (40,847)
Disposal of treasury stock
(6) 264 258
Cancellation of treasury stock
–
Changes in equity resulting from increase
in capital of consolidated subsidiaries
–
Changes in equity resulting from
transactions with non-controlling
shareholders
–
Net changes of items other than
shareholders’ equity
Total changes for the year
258 252 172,430 (40,582) 132,357
Ending balance
¥100,534 ¥553,680 ¥1,251,280 ¥(159,850) ¥1,745,644
2023
(Yen in millions)
Shareholders’ equity
Common stock Capital surplus Retained earnings Treasury stock
Total shareholders’
equity
Beginning balance
¥100,534 ¥553,680 ¥1,251,280 ¥(159,850) ¥1,745,644
Changes for the year:
Issuance of new shares
274 274 548
Dividends paid
(106,881) (106,881)
Net income attributable to owners of the
parent
161,530 161,530
Repurchase of treasury stock
(54,946) (54,946)
Disposal of treasury stock
(7) 213 205
Cancellation of treasury stock
(207,920) 207,920 –
Changes in equity resulting from increase
in capital of consolidated subsidiaries
(30) (30)
Changes in equity resulting from
transactions with non-controlling
shareholders
(850) (850)
Net changes of items other than
shareholders’ equity
Total changes for the year
274 (208,535) 54,648 153,187 (424)
Ending balance
¥100,808 ¥345,144 ¥1,305,928 ¥(6,662) ¥1,745,220
Accumulated other comprehensive income/(loss)
Stock
acquisition
rights
Non-
controlling
interests
Total net
assets
Net unrealized
gains/(losses)
on investments
in securities
Net
deferred
gains/(losses)
on hedges
Foreign
currency
translation
adjustments
Accumulated
actuarial
gains/(losses)
on retirement
benefits
Total
accumulated
other
comprehensive
income/(loss)
Beginning balance
¥1,630,325 ¥14,997 ¥(178,080) ¥3,819 ¥1,471,062 ¥1,019 ¥41,288 ¥3,126,657
Changes for the year:
Issuance of new shares
516
Dividends paid
(90,369)
Net income attributable to owners of the
parent
262,799
Repurchase of treasury stock
(40,847)
Disposal of treasury stock
258
Cancellation of treasury stock
–
Changes in equity resulting from increase
in capital of consolidated subsidiaries
–
Changes in equity resulting from
transactions with non-controlling
shareholders
–
Net changes of items other than
shareholders’ equity
(65,158) (15,996) 125,588 (2,253) 42,180 (256) 1,810 43,734
Total changes for the year
(65,158) (15,996) 125,588 (2,253) 42,180 (256) 1,810 176,092
Ending balance
¥1,565,167 ¥(998) ¥(52,492) ¥1,566 ¥1,513,242 ¥762 ¥43,099 ¥3,302,749
See accompanying notes to consolidated financial statements.
Accumulated other comprehensive income
Stock
acquisition
rights
Non-
controlling
interests
Total net
assets
Net unrealized
gains/(losses)
on investments
in securities
Net
deferred
gains/(losses)
on hedges
Foreign
currency
translation
adjustments
Accumulated
actuarial
gains/(losses)
on retirement
benefits
Total
accumulated
other
comprehensive
income
Beginning balance
¥1,565,167 ¥(998) ¥(52,492) ¥1,566 ¥1,513,242 ¥762 ¥43,099 ¥3,302,749
Changes for the year:
Issuance of new shares
548
Dividends paid
(106,881)
Net income attributable to owners of the
parent
161,530
Repurchase of treasury stock
(54,946)
Disposal of treasury stock
205
Cancellation of treasury stock
–
Changes in equity resulting from increase
in capital of consolidated subsidiaries
(30)
Changes in equity resulting from
transactions with non-controlling
shareholders
(850)
Net changes of items other than
shareholders’ equity
(348,603) (20,997) 132,196 (11,015) (248,419) (203) 2,572 (246,051)
Total changes for the year
(348,603) (20,997) 132,196 (11,015) (248,419) (203) 2,572 (246,476)
Ending balance
¥1,216,563 ¥(21,996) ¥79,704 ¥(9,448) ¥1,264,822 ¥558 ¥45,671 ¥3,056,273
See accompanying notes to consolidated financial statements.
Data Section
155
MS&AD INSURANCE GROUP HOLDINGS
156
INTEGRATED REPORT 2023
Consolidated Statements of Cash Flows
MS&AD Insurance Group Holdings, Inc. and Its Consolidated Subsidiaries
For the years ended March 31, 2022 and March 31, 2023
2023
(US$ in millions)
Shareholders’equity
Common stock Capital surplus Retained earnings Treasury stock
Total shareholders’
equity
Beginning balance
750 4,132 9,338 (1,193) 13,027
Changes for the year:
Issuance of new shares
2 2 4
Dividends paid
(798) (798)
Net income attributable to owners of the
parent
1,205 1,205
Repurchase of treasury stock
(410) (54,946)
Disposal of treasury stock
(0) 2 2
Cancellation of treasury stock
(1,552) 1,552 –
Changes in equity resulting from increase
in capital of consolidated subsidiaries
(0) (0)
Changes in equity resulting from
transactions with non-controlling
shareholders
(6) (6)
Net changes of items other than
shareholders’ equity
Total changes for the year
2 (1,556) 408 1,143 (3)
Ending balance
752 2,576 9,746 (50) 13,024
Accumulated other comprehensive income
Stock
acquisition
rights
Non-
controlling
interests
Total net
assets
Net unrealized
gains/(losses)
on investments
in securities
Net
deferred
gains/(losses)
on hedges
Foreign
currency
translation
adjustments
Accumulated
actuarial
gains/(losses)
on retirement
benets
Total
accumulated
other
comprehensive
income
Beginning balance
11,680 (7) (392) 12 11,293 6 322 24,647
Changes for the year:
Issuance of new shares
4
Dividends paid
(798)
Net income attributable to owners of the
parent
1,205
Repurchase of treasury stock
(410)
Disposal of treasury stock
2
Cancellation of treasury stock
–
Changes in equity resulting from increase
in capital of consolidated subsidiaries
(0)
Changes in equity resulting from
transactions with non-controlling
shareholders
(6)
Net changes of items other than
shareholders’ equity
(2,602) (157) 987 (82) (1,854) (2) 19 (1,836)
Total changes for the year
(2,602) (157) 987 (82) (1,854) (2) 19 (1,839)
Ending balance
9,079 (164) 595 (71) 9,439 4 341 22,808
Yen in millions US$ in millions
2022 2023 2023
I. Cash flows from operating activities:
Income before income taxes
¥370,027 ¥235,456
$
1,757
Depreciation
84,806 93,105 695
Impairment losses on fixed assets
2,684 1,801 13
Amortization of goodwill
12,305 13,888 104
Increase/(decrease) in outstanding claims
126,516 130,527 974
Increase/(decrease) in underwriting reserves
249,527 (4,722) (35)
Increase/(decrease) in bad debt reserve
6,426 834 6
Increase/(decrease) in reserve for retirement benefits for officers
64 (42) (0)
Increase/(decrease) in accrued bonuses for employees
960 (2,818) (21)
Increase/(decrease) in reserve for stock payments
–
1,009 8
Decrease/(increase) in assets for pension and retirement benefits
–
(19,911) (149)
Increase/(decrease) in liabilities for pension and retirement benefits
26,016 3,232 24
Increase/(decrease) in reserve for price fluctuation
21,405 11,616 87
Interest and dividends income
302,615 (345,468) (2,578)
Losses/(gains) on money trusts
156,698 (162,912) (1,216)
Losses/(gains) on investments in securities
127,990 (89,490) (668)
Losses/(gains) on derivative transactions
28,062 (44,502) (332)
Investment losses/(gains) on separate accounts
58,239 32,700 244
Interest expense
15,482 10,383 77
Foreign exchange losses/(gains)
166,796 (28,571) (213)
Losses/(gains) on disposal of tangible fixed assets
11,977 (30,006) (224)
Losses /(gains) on equity method investments
16,711 (2,373) (18)
Decrease/(increase) in other assets
39,250 (119,068) (889)
Increase/(decrease) in other liabilities
11,216 91,225 681
Others, net
26,820 54,428 406
Subtotal
39,047 (169,676) (1,266)
Interest and dividends received
400,993 447,284 3,338
Interest paid
15,768 (10,449) (78)
Income taxes refunded/(paid)
109,469 (73,004) (545)
Net cash provided by/(used in) operating activities (a)
236,708 194,153 1,449
II. Cash flows from investing activities:
Net decrease/(increase) in deposits and savings
6,289 (37,643) (281)
Purchase of monetary claims bought
– (4,812) (36)
Proceeds from sales and redemption of monetary claims bought
10,577 12,135 91
Purchase of money trusts
513,061 (487,409) (3,637)
Proceeds from sales of money trusts
292,136 512,110 3,822
Purchase of securities
3,688,774 (3,523,042) (26,291)
Proceeds from sales and redemption of securities
3,915,082 4,184,931 31,231
Investment in loans
196,039 (211,739) (1,580)
Collection of loans
195,900 234,847 1,753
Net increase/(decrease) in cash collateral under securities lending transactions
23,151 10,125 76
Others, net
45,671 (128,777) (961)
Subtotal (b)
409 560,726 4,185
(a + b)
236,298 754,879 5,633
Acquisition of tangible fixed assets
28,130 (24,625) (184)
Proceeds from sales of tangible fixed assets
20,594 48,588 363
Acquisition of intangible fixed assets
53,020 (57,007) (425)
Acquisition of subsidiaries resulting in changes in scope of consolidation
10,101 (45,002) (336)
Others, net
908 (1,725) (13)
Net cash provided by/(used in) investing activities
71,976 480,953 3,589
III. Cash flows from financing activities:
Repayments of borrowings
– (98,381) (734)
Issuance of bonds
149,684 – 0
Redemption of bonds
176,191 (72,000) (537)
Net increase/(decrease) in payables under repurchase agreements
116,998 (22,519) (168)
Net increase/(decrease) in cash collateral under securities lending transactions
110,259 53,229 397
Repurchase of treasury stock
40,847 (55,745) (416)
Dividends paid to shareholders
90,264 (106,753) (797)
Dividends paid to non-controlling interests
3,708 (2,284) (17)
Purchase of shares of subsidiaries not resulting in changes in scope of consolidation
– (2,471) (18)
Others, net
7,385 (7,575) (57)
Net cash provided by/(used in) financing activities
58,545 (314,502) (2,347)
IV. Effect of exchange rate changes on cash and cash equivalents
38,504 29,610 221
V. Net increase/(decrease) in cash and cash equivalents
261,781 390,215 2,912
VI. Beginning balance of cash and cash equivalents
1,994,434 2,256,216 16,837
VII. Ending balance of cash and cash equivalents
¥2,256,216 ¥2,646,431 $19,749
See accompanying notes to consolidated financial statements.
Data Section
157
MS&AD INSURANCE GROUP HOLDINGS
158
INTEGRATED REPORT 2023
Notes to Consolidated Financial Statements
MS&AD Insurance Group Holdings, Inc. and its Consolidated Subsidiaries
As of and for the years ended March 31, 2022 and March 31, 2023
SIGNIFICANT ACCOUNTING POLICIES
1. Basis of presentation
The accompanying consolidated financial statements have been translated from the consolidated financial statements of MS&AD Insurance Group Holdings,
Inc. (“the Company”) prepared in accordance with the provisions set forth in the Regulations on Corporate Accounting, the Enforcement Regulations of the
Japanese Insurance Business Act and related rules, and regulations applicable to the non-life insurance industry in general, and in conformity with accounting
principles and practices generally accepted in Japan, which may differ in certain respects from accounting principles and practices generally accepted in
countries and jurisdictions other than Japan. In preparing the accompanying consolidated financial statements, certain additional information has been provided
for the consolidated financial statements issued domestically in order to present them in a form that is more familiar to readers outside Japan.
The accompanying consolidated financial statements are expressed in Japanese yen. As permitted by the regulations under the Regulations on Corporate
Accounting, amounts are rounded down to the nearest million of Japanese yen, except for those stated otherwise. As a result, the total amounts in Japanese
yen shown in the accompanying consolidated financial statements do not necessarily agree with the sums of the individual amounts.
Solely for the convenience of readers, the accompanying consolidated financial statements as of and for the year ended March 31, 2023 have been translated
into US dollar at the rate of ¥134=US$1, the approximate exchange rate on the Tokyo foreign exchange market on the last business day of March 2023. Such
translation should not be construed as presentations that the Japanese yen amounts have been, should have been, or could in the future be, converted into US
dollar at that or any other rate.
The definition of subsidiaries and associates appearing in the accompanying consolidated financial statements and notes thereto are pursuant to Article 2 of the
Regulations on Corporate Accounting.
2. Scope of consolidation
(1) Number of consolidated subsidiaries
101 companies
Major consolidated subsidiaries are as follows:
Mitsui Sumitomo Insurance Company, Limited (“MSI”)
Aioi Nissay Dowa Insurance Company, Limited (“ADI”)
Mitsui Sumitomo Aioi Life Insurance Company, Limited (“MSAL”)
Mitsui Sumitomo Primary Life Insurance Company, Limited (“MSPL”)
MSIG Holdings (U.S.A.), Inc. (“US Holdings”)
MS Amlin Corporate Member Limited
MS Amlin Underwriting Limited
MS Amlin AG
MS Amlin Insurance SE
MS First Capital Insurance Limited
MSIG Mingtai Insurance Co.,Ltd
MSIG Insurance (Malaysia) Bhd.
Changes in scope of consolidation
Transverse Insurance Group, LLC (“Transverse”) and 12 other companies have been included in the scope of consolidation since the year ended March
31, 2023 as they have become the Company’s subsidiaries due to the acquisition of equity interests and other reasons.
As Phoenix Underwriters Limited is no longer a subsidiary due to completion of liquidation, it has been excluded from the scope of consolidation since the
year ended March 31, 2023.
(2) Unconsolidated subsidiaries
Major unconsolidated subsidiaries are as follows:
MS&AD Grand Assistance Co., Ltd.
MS&AD Systems Company, Limited
Certain subsidiaries including the above subsidiaries are not consolidated, as they are not considered to have any impact on, in all material aspects, the
consolidated financial conditions and business performance, in view of the size of their total assets, ordinary income, net income and retained earnings
attributable to the Company.
3. Application of the equity method
(1) Number of associates accounted for under the equity method
12 companies
Major associates accounted for under the equity method are as follows:
Sumitomo Mitsui DS Asset Management Company, Limited
Challenger Limited
(2) Other associates, including unconsolidated subsidiaries and associates (e.g. MS&AD Grand Assistance Co., Ltd. and Zenkankyo Reiwa Insurance
Company, Ltd.), have been excluded from the scope of application of the equity method as their effects on the consolidated net income and retained
earnings are not considered material, individually and in aggregate.
(3) The Company holds 29.9% voting rights of Japan Earthquake Reinsurance Company, Limited (“Japan Earthquake Re”) through MSI and ADI. However,
Japan Earthquake Re is not included as an associate since the Company does not have the ability to exercise significant influence over the operating and
financial decisions of Japan Earthquake Re in view of its public nature.
4. Fiscal year of consolidated subsidiaries
The fiscal year end of 93 overseas consolidated subsidiaries is December 31, which is different from that of the Company. The Company uses the financial
statements as of their latest fiscal year end for consolidation purposes since the intervening period does not exceed three months from its fiscal year end.
The Company makes adjustments to incorporate significant transactions occurred during the intervening period that materially affect the consolidated financial
statements.
5. Accounting policies
(1) Valuation policies and methods of securities (including those included in Cash, deposits and savings, and Monetary claims bought as set forth in the
Enforcement Regulations of the Japanese Insurance Business Act)
(i) Trading securities are valued at their year-end market prices. Cost of sales is calculated using the moving average method. For certain overseas
consolidated subsidiaries, cost of sales is calculated using the first-in, first-out method.
(ii) Held-to-maturity securities are valued at amortized cost.
(iii) Investments in unconsolidated subsidiaries and associates that are not accounted for under the equity method are valued at cost determined by the
moving average method.
(iv) Debt securities and money trusts earmarked for underwriting reserves are valued at amortized cost determined by the moving average method in
accordance with Industry Audit Committee Report No. 21 “Temporary Treatment of Accounting and Auditing Concerning Debt Securities Earmarked
for Underwriting Reserve in the Insurance Industry” (issued by the Japanese Institute of Certified Public Accountants on November 16, 2000).
A summary of the risk management policy for debt securities and money trusts earmarked for underwriting reserves is as follows:
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To effectively manage risks of variability in interest rates related to assets and liabilities, MSAL establishes subgroups of “individual insurance” that
meet certain criteria for each type of insurance and investment policy, as well as applies the investment policy and cash allocation policy reflecting
their characteristics. In addition, MSAL periodically assesses whether the durations of the debt securities earmarked for underwriting reserves fall
within a certain range from those of the underwriting reserves in each subgroup.
To effectively manage risks of variability in interest rates related to assets and liabilities, MSPL establishes subgroups of “individual insurance and
individual annuities” that meet certain criteria for each currency, as well as applies the investment policy and cash allocation policy reflecting their
characteristics. In addition, MSPL periodically assesses whether the durations of the debt securities earmarked for underwriting reserves fall within a
certain range from those of the underwriting reserves in each subgroup.
Effective from the year ended March 31, 2023, MSPL discontinued the subgroups of individual insurance and individual annuities (denominated in
Australian dollars and New Zealand dollars), and debt securities earmarked for underwriting reserves held in these subgroups were reclassified as
available-for-sale securities. This was mainly due to the improvement in ALM (asset and liability Management) efficiency in line with the decrease in
the balance of underwriting reserves for these subgroups. As a result of this change, securities decreased by 19,686 million yen, net unrealized gains
on available-for-sale securities decreased by 14,173 million yen, and deferred tax assets increased by 5,512 million yen at the time of transfer on
September 30, 2022.
(v) Available-for-sale securities (except for stocks and other securities without market prices) are valued at their market prices.
Net unrealized gains and losses are reported as a separate line item of net assets. For foreign currency bonds held by certain consolidated
subsidiaries, changes in fair values due to fluctuations in foreign exchange rates are reported in net unrealized gains and losses in net assets, while
the remaining changes are reported as foreign exchange gains and losses in the consolidated financial statements of income. Cost of sales is
calculated by the moving average method.
(vi) Stocks and other securities without market prices that are classified as available-for-sale securities are valued at cost using the moving average
method.
(vii) Money trusts specifically managed for the Company and its domestic consolidated subsidiaries for trading purposes are valued at fair value.
Money trusts specifically managed for the Company and its domestic consolidated subsidiaries, other than those held for trading purposes, held to
maturity or earmarked for underwriting reserves, are valued on the same basis as available-for-sale securities.
(2) Valuation policies and methods of derivative financial instruments
Derivative financial instruments are valued at fair value.
(3) Depreciation methods of significant depreciable assets
(i) Depreciation of tangible fixed assets is computed using the straight-line method.
(ii) Intangible fixed assets are amortized by the straight-line method. Capitalized software for internal use is amortized by the straight-line method over its
estimated useful life.
(4) Accounting policies for significant reserves
(i) Bad debt reserve
For domestic consolidated insurance subsidiaries, bad debt reserve is established under the internal standards for self-assessment of assets and the
policy for write-off and provision.
Bad debt reserve for loans to debtors who are legally deemed to be insolvent due to bankruptcy or special liquidation, or whose notes are under
suspension at clearing houses, and loans to debtors who are deemed to be substantially insolvent is provided based on the outstanding balance
remaining after deducting the resale value of collateral and the amount collectible through guarantees.
Bad debt reserve for loans to debtors who are likely to become insolvent in the future is provided based on the outstanding balance remaining after
deducting the resale value of collateral, the amount collectible through guarantees and the amount expected to be repaid by the debtors considering
their overall ability to pay.
For loans other than those described above, bad debt reserve is calculated by multiplying the outstanding balances by the historical bad debt ratios.
Bad debt reserve for all loans and receivables is provided based on the assessment under the internal standards for self-assessment of assets. The
assessment is performed by the departments responsible for the respective assets and the results are reviewed by independent internal audit
departments.
For other domestic consolidated subsidiaries, bad debt reserve is established under their internal standards for self-assessment of assets and
policies for provision similar to those of the domestic consolidated insurance subsidiaries.
For overseas consolidated subsidiaries, bad debt reserve is established based on the assessment of collectability of individual receivables.
(ii) Reserve for retirement benefits for officers
Reserve for retirement benefits that covers the cost of services rendered by officers and operating officers of MSI and MSAL up to the year ended
March 31, 2005, the date on which the retirement benefit plans for officers were terminated, is established to provide for their future retirement
benefits (including pension).
(iii) Accrued bonuses for employees
Accrued bonuses for employees are determined based on the estimated amounts to be paid at the year-end to provide for future bonuses for
employees and operating officers.
(iv) Reserve for share delivery
To provide for the delivery of the Company’s shares in accordance with the share delivery rules under the share compensation plan for employees,
the Company records Reserve for share delivery based on the estimated amount of share delivery obligations at the end of the year ended March 31,
2023.
(v) Reserve for price fluctuation
For the domestic consolidated insurance subsidiaries, the reserve for price fluctuation is recognized under Article 115 of the Japanese Insurance
Business Act to provide for possible losses arising from price fluctuation of investment assets such as equity securities.
(5) Accounting for retirement benefits
(i) Attribution method of retirement benefits over the service period
In computing retirement benefit obligations, the estimated retirement benefits are attributed to the periods up to the current year using the plan’s
benefit formula.
(ii) Accounting for actuarial gains and losses
Actuarial gains and losses are amortized, commencing from the following year, using the straight-line method over a certain number of years
(primarily 10 - 11 years) that do not exceed the expected average remaining service period of employees at the time of occurrence.
(6) Translation of foreign currency assets and liabilities
Foreign currency monetary assets and liabilities of the Company and its domestic consolidated subsidiaries are translated into Japanese yen using the
spot exchange rate prevailing at the year end. The foreign exchange gains and losses resulting from the translation are recognized in earnings. Foreign
currency assets and liabilities of overseas consolidated subsidiaries are translated into Japanese yen using the spot exchange rate prevailing at their
respective year ends, while shareholders’ equity is translated at the historical rates. Income and expenses of overseas consolidated subsidiaries are
translated into Japanese yen using the average exchange rate for the year. Differences arising from such translations are included in Foreign currency
translation adjustments and Non-controlling interests in Net Assets.
(7) Hedge accounting
Under Japanese GAAP, several methodologies are allowed for hedge accounting. Two fundamental approaches are the deferred hedge method and the
fair value hedge method. Under the deferred hedge method, gains and losses on changes in fair value of derivative financial instruments are deferred and
accounted for as a separate line item of net assets. Under the fair value hedge method, which is allowed only with respect to available-for-sale securities
being the hedged items, gains and losses on changes in fair value of the hedging instruments are recognized in earnings together with the corresponding
gains and losses of the hedged items attributable to the risks being hedged.
In addition, for certain derivative financial instruments, alternative treatments are permitted under Japanese GAAP. Assets and liabilities denominated in
foreign currencies and hedged by foreign exchange forward contracts or currency swaps can be accounted for by the allocation method. Under this
method, the foreign exchange forward contracts and currency swaps used as hedging instruments are not measured at fair value since gains and losses
on the derivatives are assumed to be offset with changes in fair value of the corresponding hedged items, and hedged items are translated at the foreign
exchange rates that are stipulated in the foreign exchange forward contracts or currency swaps (hedging instruments). Interest rate swaps that qualify for
hedge accounting and meet specific matching criteria are not remeasured at fair value, but the differentials paid or received under the swap agreements
are recognized and included in interest expense or income of the hedged items (the exceptional method).
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For certain domestic consolidated insurance subsidiaries, gains and losses on equity forward contracts used for hedging risks of variability in the fair value
of investments in equity securities are accounted for under the fair value hedge method. Gains and losses on currency swap contracts used for hedging
risks of variability in foreign exchange rates on foreign currency assets are accounted for under the deferred hedge method. Gains and losses on certain
currency option contracts are accounted for under the fair value hedge method, and gains and losses on certain foreign exchange forward contracts are
accounted for under the fair value hedge method, deferred hedge method or the allocation method. Gains and losses on currency swap contracts used
for hedging risks of variability in foreign exchange rates on foreign currency bonds issued by MSI are accounted for under the allocation method.
Gains and losses on interest rate swap contracts used for hedging risks of variability in interest rates of loans, bonds and borrowings are accounted for
under the deferred hedge method or the exceptional method when they meet certain criteria.
Gains and losses on interest rate and currency swap contracts used for hedging risks of variability in foreign exchange rates and interest rates on foreign
currency borrowings are accounted for under the integrated method when they meet certain criteria. The integrated method is to hedge foreign currency
risks and interest rate risks using the allocation method and the exceptional method, respectively.
Hedge effectiveness is assessed quarterly by comparing cumulative fluctuations in fair value or cash flows of the hedged items and hedging instruments
for the periods from the respective start dates of the hedges to the assessment dates. When the hedged items and the hedging instruments are highly
and clearly interrelated, when the interest rate swap transactions meet the criteria for the application of the exceptional method, or when the interest rate
and currency swap contracts meet the criteria for the application of the integrated method, hedge effectiveness is not assessed.
(Hedging relationships to which “Practical Solution on the Treatment of Hedge Accounting for Financial Instruments that Reference LIBOR” is applied)
Among the above hedging relationships, the exceptional treatment prescribed in “Practical Solution on the Treatment of Hedge Accounting for Financial
Instruments that Reference LIBOR” (ASBJ Practical Issues Task Force (“PITF”) No. 40, March 17, 2022) is applied to all hedge relationships included in the
scope of application of PITF No. 40. The details of the hedging relationships to which PITF No. 40 is applied are as follows:
Hedge accounting method: Deferred hedge accounting
Hedging instruments: Interest rate swaps
Hedged items: Floating rate bonds
Type of hedging transaction: Transaction to fix cash flows
(8) Other important matters for the preparation of consolidated financial statements
(i) Accounting for insurance contracts
Domestic consolidated insurance subsidiaries account for insurance contracts related items including insurance premiums, outstanding claims and
underwriting reserves in accordance with the Japanese Insurance Business Act and related rules. Overseas consolidated insurance subsidiaries
apply either International Financial Reporting Standards (IFRS) or US generally accepted accounting principles for the items in accordance with
Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries, etc. for the Consolidated Financial Statements (PITF No. 18
revised on June 28, 2019).
(ii) Accounting for consumption taxes
Consumption taxes received or paid by the Company and its major domestic consolidated subsidiaries are not included in income or expenses,
except for those related to Loss adjustment expenses and Operating expenses and general and administrative expenses incurred by the domestic
consolidated non-life insurance subsidiaries. Consumption taxes excluded from income and expenses are recorded at the net amount on the balance
sheet.
Non-deductible consumption taxes are recognized as expenses for the period, except for those related to the purchase of depreciable fixed assets
that are not charged to expenses but deferred as Other assets and amortized over a period of 5 years on a straight-line basis.
(iii) Application of consolidated tax return filing system
The Company and certain domestic consolidated subsidiaries applied the consolidated tax return filing system for the year ended March 31, 2022.
(iv) Application of the group tax sharing system
The Company and certain domestic consolidated subsidiaries applied the group tax sharing system for the year ended March 31, 2023.
6. Goodwill
Goodwill is amortized using the straight-line method over a period of 7 to 20 years. Insignificant amounts of goodwill are charged to expenses as incurred.
7. Accounting estimates
(1) Impairment losses on goodwill
(i) Amounts recorded in the consolidated financial statements as of March 31, 2022 and March 31, 2023
In the consolidated balance sheet of the Company as of March 31, 2022 and March 31, 2023, goodwill of ¥124,946 million and ¥143,247 million
were recognized, respectively. In addition, goodwill of ¥41,067 million and ¥35,384 million related to equity method associates were included in
securities therein, respectively.
(ii) Details of accounting estimates
(a) Measurement approach
For the asset group including goodwill whose invested amount is not recoverable due to decline of profitability, an impairment loss should be
recognized by reflecting its recoverability under certain conditions. In accordance with “Accounting Standard for Impairment of Fixed Assets”
(ASBJ Statement, August 9, 2002), if there is any indication of impairment such as consecutive net losses and/or deterioration of business
environment, the Company and its consolidated subsidiaries (collectively “the Group”) determine whether an impairment loss should be
recognized by comparing the sum of the undiscounted future cash flows that are expected to be generated from the related asset group with
the carrying amount. If the recognition of an impairment loss is deemed necessary, the carrying amount of the asset group is reduced to its
recoverable amount and an impairment loss is recognized for the amount by which the asset group is reduced.
The Group estimates the sum of the undiscounted future cash flows based on the relevant business plans. The recoverable amount represents
the present value of future cash flows expected to be derived from the continuing use of the asset and from its disposal thereafter and the
amount of an impairment loss relies on the estimated future cash flows based on reasonable assumptions and projections.
An indication of impairment was identified in the current period for MS Amlin AG, an overseas consolidated subsidiary that operates the
reinsurance business, as it had incurred a net loss before tax for two consecutive years. Accordingly, the Group performed an impairment test
to determine whether an impairment loss should be recognized on the asset group that included the goodwill of MS Amlin AG (consisting of
tangible fixed assets of ¥985 million, goodwill of ¥3,607 million, and intangible fixed assets (excluding goodwill) of ¥38,144 million). Since the
sum of the undiscounted future cash flows exceeded the carrying amount of the asset group, no impairment loss was recognized.
(b) Effects on the consolidated financial statements for the next year
An impairment loss may be recognized if the profitability of a business declines and estimated future cash flows are significantly decreased as a
result of changes in business environment.
(2) Outstanding claims
(i) Amounts recorded in the consolidated financial statements as of March 31, 2022 and March 31, 2023
In the consolidated balance sheet of the Company as of March 31, 2022 and March 31, 2023, outstanding claims of ¥2,467,600 million and
¥2,682,482 million were recognized, respectively. Of this amount, outstanding claims of non-life insurance business accounted for a substantial
portion.
(ii) Details of accounting estimates
In accordance with the provisions set forth in Article 117 of the Japanese Insurance Business Act as well as Articles 72 and 73 of the Enforcement
Regulations of the Japanese Insurance Business Act, domestic consolidated subsidiaries recognize outstanding claims which represent the
estimated amount of unpaid claims for the losses that have incurred or deemed to have incurred under insurance contracts. Overseas consolidated
subsidiaries apply similar methods for recording outstanding claims.
(a) Measurement approach
The Group individually recognized expected claims payments for reported claims based on the details of reported loss events, insurance
contract terms and claim investigations.
For incurred but not reported claims, the Group recognized expected claims payments based on the estimated ultimate losses determined in
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consideration of the past experience of claims payments in the previous years.
(b) Effects on the consolidated financial statements for the next year
The amounts of insurance claim payments and outstanding claims may differ from their initial estimates due to the development of claim
investigations, outcome of litigations and changes in foreign exchange rates.
Uncertainty over the estimate of outstanding claims has been high, due to increasing severity and frequency of natural disasters both within and
outside Japan in recent years, the Russian invasion into Ukraine, and inflation.
8. Change in accounting policy
(Application of “Accounting Standard for Fair Value Measurement” and Others)
The Group has applied “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019), “Revised Implementation Guidance on
Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31, June 17, 2021) and others since the beginning of the year ended March 31, 2022.
In accordance with transitional measures set forth in Paragraph 19 of “Accounting Standards for Fair Value Measurement,” Paragraph 44-2 of “Accounting
Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019) and Paragraph 27-2 of “Revised Implementation Guidance on Accounting Standard
for Fair Value Measurement,” the Group has applied new accounting policies prescribed by “Accounting Standard for Fair Value Measurement” and others
prospectively from the date of application.
As a result, part of investment trusts classified as financial instruments for which the fair values were not practically determinable that were recorded on the
consolidated balance sheets at cost have been changed to be recorded on the consolidated balance sheets at fair value.
Information on the breakdown of financial instruments by level of fair value is included in Note 9 “Information on financial instruments” of Notes to Consolidated
Balance Sheets.
9. Cash and cash equivalents on the consolidated statements of cash flows
In preparing the consolidated statements of cash flows, cash and cash equivalents constitute cash on hand, readily available deposits and short-term highly
liquid investments with original maturities not exceeding three months.
10. Additional information
(Share compensation plan for employees)
Effective from the year ended March 31, 2023, the Company has entered into a share compensation plan for employees (the “Plan”) of its consolidated
subsidiaries MSI, ADI, Mitsui Direct, MSAL, and MSPL (the “Participating Companies”).
(i) Overview of the transaction
Pursuant to the Plan, shares of the Company are delivered to employees of the Participating Companies (“employees”) who satisfy certain
requirements through a share delivery trust established by the Company. The number of Company’s shares to be granted to employees is
determined by the number of points awarded based on employee classification, the Group’s performance, and other factors. The trust acquires a
substantial number of Company’s shares from the stock market in a lump sum that are expected to be delivered, based on funds contributed by the
Participating Companies through the Company.
(ii) Company’s shares outstanding in the trusts
The Company’s shares outstanding in the trusts are recorded at the carrying amount (excluding the amount for incidental expenses) as treasury
stock in net assets. The carrying amount of this treasury stock at the end of the year ended March 31, 2023 is 4,034 million yen, and the number of
shares is 990 thousand.
(Performance-based share compensation plan for overseas consolidated subsidiaries)
Certain overseas consolidated subsidiaries implemented a performance-based share compensation plan (hereinafter, “the Plan”) for employees and officers
subject to certain conditions.
(i) Overview of the transaction
The Plan is a scheme to determine the number of shares to be granted based on the average performance during a certain period, and to deliver the
Company’s shares or pay the cash equivalent to the Company’s shares converted at fair value.
To prepare for future deliveries under the Plan, a trust set up using the cash contributed by subsidiaries that implemented the Plan acquired the
Company’s shares from the stock market.
(ii) Shares remaining in the trust
The Company’s shares remaining in the trust are recorded as treasury stock in the net assets section at the carrying amount in the trust (excluding
incidental expenses). The carrying amounts of shares of the treasury stock as of March 31, 2022 and March 31, 2023 were ¥799 million and ¥1,660
million. The number of shares of the treasury stock as of March 31, 2022 and March 31, 2023 were 213 thousand shares and 440 thousand shares,
respectively.
(Application of the “Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System”)
Effective from the year ended March 31, 2023, the Company and some of its domestic consolidated subsidiaries have transitioned from a
consolidated tax return filing system to a group tax sharing system. In accordance with this change, the accounting treatment and disclosure of
corporate and local income taxes and tax-effect accounting are subject to “Practical Solution on the Accounting and Disclosure Under the Group Tax
Sharing System” (PITF No. 42, August 12, 2021). In accordance with Paragraph 32 (1) of PITF No. 42, the Company has assumed that there is no
impact from the change in accounting policy resulting from the application of PITF No. 42.
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Yen in millions
March 31, 2022 March 31, 2023
1,888,006
1,569,434
6. The amounts of assets and liabilities in separate accounts under Article 118 of the Japanese Insurance Business Act are as follows:
Yen in millions
March 31, 2022 March 31, 2023
16,513
12,100
8. The unutilized balances of commitment lines to third parties are as follows:
MSI provides guarantees on transactions conducted by a limited partnership entity. Aggregate net present value of these transactions was ¥64,113 million and
¥29,682 million, respectively in a negative liability position as of March 31, 2022 and March 31, 2023. These amounts were not included in Customers’ liabilities
under acceptances and guarantees or Acceptances and guarantees since there was no substantial exposure.
7. Guarantees on transactions conducted by a limited partnership entity are as follows:
Yen in millions
March 31, 2022 March 31, 2023
754,059 699,408
5. The amounts of securities loaned under securities lending agreements are as follows:
Yen in millions
March 31, 2022 March 31, 2023
Assets pledged as collateral:
Cash, deposits and savings 19,662 30,360
Money trusts 2,521 2,750
Securities 748,974 775,768
Total 771,158 808,879
Note: The amounts in the above table primarily consist of collateral assets required for payables under repurchase agreements included in Other liabilities, for international operations and for Real Time
Gross Settlement of the current account with the Bank of Japan.
The amounts of those repurchase agreements included in Other liabilities are as follows:
Yen in millions
March 31, 2022 March 31, 2023
227,342 204,822
4. The amounts of assets pledged as collateral are as follows:
Yen in millions
March 31, 2022 March 31, 2023
Accumulated depreciation 415,853 430,206
Accelerated depreciation 12,162 11,629
Note: As permitted under Japanese tax legislation for the purpose of deferral in recognizing taxable income, the acquisition cost of certain qualifying properties is reduced to offset the taxable income
that resulted from the sales of assets to be replaced by the acquired assets or receipts of governmental subsidies provided for the acquisition of the new assets. The total amounts deducted from
the original acquisition cost of the qualifying properties as of March 31, 2022 and March 31, 2023 were ¥12,162 million and ¥11,629 million, respectively.
1. The amounts of accumulated depreciation and accelerated depreciation of tangible fixed assets are as follows:
Yen in millions
March 31, 2022 March 31, 2023
Securities (Domestic stocks) 30,238 30,255
Securities (Foreign securities) 269,031 287,723
Securities (Other securities) 24,604 28,113
Total 323,874 346,092
2. The carrying amounts of equity investments in unconsolidated subsidiaries and associates are as follows:
Yen in millions
March 31, 2022 March 31, 2023
Bankrupt and quasi-bankrupt loans 75 5
Doubtful loans 121 722
Loans overdue for three months or more 204 99
Restructured loans 1,024 301
Total 1,425 1,128
Note: Bankrupt and quasi-bankrupt loans are claims to debtors that went bankrupt due to reasons such as the initiation of bankruptcy proceedings, the start of reorganization proceedings, and the
submission of an application to start rehabilitation proceedings, as well as claims of a similar nature.
Doubtful loans are claims to debtors that are not yet bankrupt but whose financial conditions and business performance have deteriorated, and where it is highly probable that the principal and
interest in line with the original contracts cannot be collected, excluding bankrupt and quasi-bankrupt loans.
Loans overdue for three months or more represent those for which the principal or interest has been past due for three months or more after the contractual due date, excluding bankrupt and
quasi-bankrupt loans and doubtful loans.
Restructured loans represent those with certain agreements favorable to debtors, such as interest exemption or reduction, grace on interest or principal payments, or forgiveness of debts for the
purpose of restructuring of or provision of support to the debtors in financial difficulties, excluding bankrupt and quasi-bankrupt loans, doubtful loans, and loans overdue for three months or more.
(Change in presentation)
Due to the enforcement on March 31, 2022 of the “Cabinet Office Ordinance for Partial Revision of the Enforcement Regulations of the Japanese Banking Act,
etc.” (Cabinet Office Ordinance No. 3, January 24, 2020), the classification of “risk-monitoring loans” based on the Insurance Business Act has been presented
in accordance with the classification of loans based on the Act of Emergency Measures for the Revitalization of the Financial Functions.
3.
Among the loans in accordance with the Insurance Business Act, the amounts of bankrupt and quasi-bankrupt loans, doubtful loans, loans
overdue for three months or more, and restructured loans are as follows:
NOTES TO CONSOLIDATED BALANCE SHEETS
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(c) Liquidity risk management
The Group maintains and operates a funding and market liquidity risk management structure in accordance with internal policies for liquidity risk
management. The Group’s treasury management classifies funding needs into “ordinary” and “emergency” depending on the urgency level and
oversees operation and management for the liquidity in each level, which gives the foremost consideration to the liquidity risk. The treasury
management also ensures the diversification of fundraising activities to secure and maintain liquidity in various environments. The Group manages
funding liquidity risks by holding a sufficient amount of cash, savings and deposits, and highly liquid securities such as government bonds, and
regularly monitoring their aggregate amounts in case of unexpected events like catastrophes and the deterioration of funding liquidity arising from
turmoil in the financial markets.
(iv) Supplementary explanation of matters related to the fair value of financial instruments and other information
In determining fair value of financial instruments, certain assumptions and methods are used, thus the fair value may differ if alternative assumptions
are applied.
(2) Fair value of financial instruments and breakdown by level of fair value
The carrying amounts on the consolidated balance sheets, the fair values, the differences between the carrying amounts and fair values, and each level of
fair values of financial instruments are as follows.
Stocks and other securities without market prices and investments in partnerships etc. (as of March 31, 2021, financial instruments in which the fair values
are not practically determinable) are not included in the following table (see Note 3 and Note 4).
The fair value of financial instruments is categorized within the following three levels based on the observability and significance of the inputs used to
measure fair value.
Level 1: Fair value measured using (unadjusted) quoted prices in active markets for identical assets or liabilities
Level 2: Fair value measured using directly or indirectly observable inputs other than Level 1 inputs
Level 3: Fair value measured using significant unobservable inputs
If multiple inputs are used with significant effects on the fair value measurement, the fair value is categorized within the lowest priority level of fair value
measurement among the levels where those inputs belong.
9. Information on financial instruments
(1) Qualitative information on financial instruments
(i) Policy on financial instruments
The Group applies Asset and Liability Management policies to maintain stability of investment returns, safety of assets and sufficient liquidity under an
appropriate risk management framework to attain sustainable growth of the net asset value. In addition, the Group is exposed to investment risks
such as market risks and credit risks and manages those risks in accordance with the risk management policies of the Group and each group
company.
The Group’s cash inflows which mainly arise from insurance operations and investment activities are affected by changes in external environment
such as occurrences of natural disasters and changes in financial market conditions. To enhance efficiency of funds operations and strengthen
financial capacity under such changing conditions, the Group undertakes to raise funds through the issuance of long-term or short-term corporate
bonds or other financing methods as the needs arise.
(ii) Details of financial instruments and associated risks
The Group’s financial assets mainly consist of securities including domestic bonds, domestic stocks and foreign securities, loans and other financial
instruments. Risks pertaining to investments include market risks, credit risks, market liquidity risks and other risks. Market risks arise from
fluctuations in interest rates, stock prices, foreign exchange rates and other market indicators. Credit risks arise from the deterioration in the financial
condition of security issuers and counterparties of loans. Market liquidity risks represent the risks that investment assets are forced to be sold at
extremely unfavorable prices under turmoil in the financial markets.
The Group utilizes derivative transactions represented by interest rate swaps, interest rate options, bond future contracts, equity index future
contracts, equity forward contracts, foreign exchange forward contracts, currency swaps, currency options, and interest rate and currency swaps for
the purpose of hedging risks such as fluctuations in interest rates, stock prices and foreign exchange rates. In addition, the Group utilizes credit
derivatives, weather derivatives and catastrophe derivatives to generate investment returns with consideration given to the associated risks.
For details of derivative transactions to which hedge accounting is applied, please refer to “Significant Accounting Policies, 5. Accounting policies, (7)
Hedge accounting”.
Derivative transactions involve risks associated with fluctuations in fair value of derivative financial instruments, risks of non-performance resulting
from insolvency of counterparties and market liquidity risks. Derivative transactions utilized by the Group are also exposed to these risks. However,
market risks associated with derivative transactions utilized for the purpose of hedging are mitigated, as changes in the fair value of hedged items
and hedging instruments offset each other. To mitigate credit risks arising from the non-performance of counterparties, most of the Group’s derivative
transactions are executed only with select counterparties of high credit quality and diversified among various counterparties. Furthermore, under
Credit Support Annex (“CSA”), the Group obtains collateral from counterparties.
(iii) Risk management structure related to financial instruments
The Group manages risks in accordance with the basic policy for risk management and internal policies for asset management risks, which stipulate
the definition of risks and management method established by the Board of Directors. At major domestic consolidated insurance subsidiaries, the
trading department is segregated from the backoffice and risk management departments, and maintains a structure that enables to exercise
organizational checks and balances on a daily basis. The risk management department assesses, analyzes and manages risks related to financial
instruments by quantifying market and credit risks using the Value-at-Risk (“VaR”) method and risk limit management based on asset and liability
position, and regularly reports the results to the Board of Directors.
(a) Market risk management
The Group maintains and operates a risk management structure taking into account the characteristics of each financial instrument in accordance
with its internal policies for market risk management. In addition to monitoring of risk amount by quantifying risks using the VaR method as described
above, major domestic consolidated insurance subsidiaries manage market risks through the assessment of potential risks that cannot be identified
using the VaR method, analysis of sensitivity of existing assets to changes in interest rates, stock prices and foreign exchange rates and analysis of
concentration and weakness of portfolio.
(b) Credit risk management
The Group maintains and operates a risk management structure in accordance with its internal policies for credit risk management. For securities and
derivative transactions at major domestic consolidated insurance subsidiaries, the trading and risk management departments manage credit risks of
security issuers and derivative counterparties by regularly monitoring the credit information and fair values associated with the investment assets. For
loans at MSI, ADI and MSPL, the trading and risk management departments maintain a credit risk management structure through credit screening,
setting internal credit ratings and credit limits, managing credit information, requiring collaterals and guarantees where necessary, and resolving
delinquent loans on an individual loan basis.
Data Section
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MS&AD INSURANCE GROUP HOLDINGS
170
INTEGRATED REPORT 2023
(i) Financial assets and liabilities measured at fair value on the consolidated balance sheet
Yen in millions
Carrying amount
March 31, 2022
Level 1 Level 2 Level 3 Total
(a) Monetary claims bought – 129,326 4,368 133,695
(b) Money trusts – 1,652,272 386,862 2,039,135
(c) Securities:
Trading securities
Domestic bonds 34,886 4,866 – 39,752
Domestic stocks 8,165 – – 8,165
Foreign securities 418,245 345,549 100,330 864,125
Others 11,639 1,868,003 – 1,879,642
Available-for-sale securities
Domestic bonds 1,746,410 1,344,937 – 3,091,347
Domestic stocks 2,782,250 – – 2,782,250
Foreign securities 1,091,583 2,351,167 223,560 3,666,310
Others 17,676 181,720 26,405 225,802
Derivative transactions
(*1)
:
Currency 122 20,887 – 21,010
Interest rate 74 21,196 – 21,271
Equity – 2,021 – 2,021
Bond 4,185 – – 4,185
Credit – 848 – 848
Others – – 379 379
Total assets 6,115,239 7,922,797 741,906 14,779,944
Derivative transactions
(*1)
:
Currency 70 68,273 – 68,344
Interest rate 99 7,791 – 7,891
Equity 6,042 501 – 6,544
Bond 1,250 – – 1,250
Credit – 2,507 – 2,507
Others – – 696 696
Total liabilities 7,462 79,075 696 87,233
(*1) The carrying amounts of derivative transactions applying hedge accounting are ¥2,190 million as an asset and ¥47,239 million as a liability.
Yen in millions
Carrying amount
March 31, 2023
Level 1 Level 2 Level 3 Total
(a) Monetary claims bought
– 116,562 3,091 119,654
(b) Money trusts
– 1,495,842 586,170 2,082,012
(c) Securities:
Trading securities
Domestic bonds
42,755 2,522 – 45,278
Domestic stocks
5,802 – – 5,802
Foreign securities
446,094 380,295 122,621 949,012
Others
10,855 1,547,458 – 1,558,314
Available-for-sale securities
Domestic bonds
1,388,026 1,270,494 – 2,658,520
Domestic stocks
2,577,273 – – 2,577,273
Foreign securities
848,651 3,020,259 279,567 4,148,478
Others
26,277 150,435 27,014 203,727
Derivative transactions
(*1)
:
Currency
– 26,395 – 26,395
Interest rate
519 27,423 – 27,942
Equity
3,457 124 – 3,581
Bond
6,471 – – 6,471
Credit
– 866 – 866
Others
– – 803 803
Total assets
5,356,185 8,038,682 1,019,269 14,414,137
Derivative transactions
(*1)
:
Currency
– 30,107 – 30,107
Interest rate
507 23,037 – 23,544
Equity
1,198 463 – 1,661
Bond
8,690 – – 8,690
Credit
– 756 – 756
Others
– – 691 691
Total liabilities
10,395 54,364 691 65,451
(*1) The carrying amounts of derivative transactions applying hedge accounting are ¥3,886 million as an asset and ¥9,716 million as a liability.
Data Section
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MS&AD INSURANCE GROUP HOLDINGS
172
INTEGRATED REPORT 2023
(Note 1) Description of the valuation techniques and inputs used to measure fair value
Assets
(a) Monetary claims bought
With regard to commercial papers (CP), the price quoted by counterparty financial institutions is deemed the fair value. With regard to certain CP,
the carrying amounts approximate the fair value since they are scheduled to be settled in a short period of time. With regard to Monetary claims
bought other than CP, the price quoted by counterparty financial institutions is deemed the fair value.
These are mainly categorized within Level 2.
(b) Money trusts
With regard to Money trusts, the price quoted by trustees is deemed the fair value. These are categorized within Level 2 or Level 3 based on the
level of components of assets in trust.
(c) Securities
Those with unadjusted quoted prices available in active markets, mainly including listed stocks, government bonds, and listed investment trusts, are
categorized within Level 1.
Those with published quoted prices in markets that are not active, mainly including municipal bonds and corporate bonds, are categorized within
Level 2.
With regard to unlisted investment trusts, prices quoted by trust management companies are deemed the fair value. These are categorized within
Level 2 or Level 3 mainly based on the level of components of assets in trust.
(d) Loans
With regard to floating rate loans, the carrying amounts approximate the fair value contingent on no significant changes in the credit conditions of
the debtor, because the floating rates on the loans reflect market interest rates. With regard to fixed rate loans, for loans sorted by type, term and
credit rating, the fair value is based on the present value of the estimated future cash flows discounted at market interest rates, such as yields on
government bonds, plus a credit spread. The fair value of certain personal loans is determined at the net present value of the estimated future cash
flows discounted at interest rates applicable to the same type of new loans. With regard to some loans, the price provided by counterparty financial
institutions is deemed the fair value.
With regard to policy loans that do not have contractual maturities, as the loan amount is limited to the surrender value, the carrying amounts
approximate the fair value, considering their estimated repayment periods and interest rates.
With regard to loans to debtors that are legally or substantially bankrupt and loans to doubtful debtors, the carrying amounts less bad debt reserve
are deemed the fair value, because the bad debt reserve is determined based on the present value of the estimated future cash flows or the value
of the collateral and the amount collectible through guarantees.
These are mainly categorized within Level 3. Some loans on which the effect of unobservable inputs is insignificant are categorized within Level 2.
Liabilities
Bonds issued
With regard to Bonds issued, the fair value is determined based on “Reference Statistical Prices for OTC Bond Transactions” published by the
Japan Securities Dealers Association (“JSDA”) or prices quoted by counterparty financial institutions. Those based on “Reference Statistical Prices
for OTC Bond Transactions” published by JSDA are categorized within Level 2, and those based on prices quoted by counterparty financial
institutions are categorized within Level 3.
Derivative transactions
With regard to market transactions, the fair value is determined based on the closing prices at exchanges. With regard to transactions other than
market transactions, the fair value is determined based on prices quoted by counterparty financial institutions or prices calculated by the valuation
model using inputs such as interest rates, exchange rates, and volatility.
The market transactions are mainly categorized within Level 1. The transactions other than market transactions using significant unobservable
inputs are categorized within Level 3, and the other transactions are categorized within Level 2.
(ii) Financial assets and liabilities that are not measured at fair value on the consolidated balance sheet
Cash, deposits and savings, and receivables under resale agreements are not included in the following tables as they are mostly short term (within
one year) and their fair values approximate their carrying amounts.
Yen in millions
Fair value
Carrying
amount Difference
March 31, 2022
Level 1 Level 2 Level 3 Total
(a) Monetary claims bought – 12,794 – 12,794 12,794 –
(c)
Securities:
Held-to-maturity securities
Domestic bonds
1,228,416 126,907 – 1,355,323 1,220,261 135,061
Foreign securities
– 3,852 – 3,852 3,875 (22)
Debt securities earmarked for underwriting reserves
Domestic bonds
1,679,742 128,728 – 1,808,470 1,928,505 (120,034)
Foreign securities
19,822 745,950 – 765,773 762,307 3,466
Investments in associates
156,496 2,829 – 159,325 89,538 69,787
(d)
Loans
985,242
Bad debt reserve
(*1)
(67)
– 291,971 698,840 990,811 985,174 5,637
Total assets 3,084,478 1,313,034 698,840 5,096,353 5,002,457 93,896
Bonds issued – 683,612 101,319 784,931 782,902 2,029
Total liabilities – 683,612 101,319 784,931 782,902 2,029
(*1) Bad debt reserve for loans is deducted from the carrying amount.
Yen in millions
Fair value
Carrying
amount Difference
March 31, 2023
Level 1 Level 2 Level 3 Total
(a) Monetary claims bought – 23,321 – 23,321 23,321 –
(c)
Securities:
Held-to-maturity securities
Domestic bonds
1,170,767 122,804 – 1,293,571 1,221,808 71,763
Foreign securities
– 4,375 – 4,375 4,262 113
Debt securities earmarked for underwriting reserves
Domestic bonds
1,535,481 120,688 – 1,656,169 1,947,747 (291,577)
Foreign securities
15,174 286,071 – 301,246 313,075 (11,828)
Investments in associates
136,984 4,128 – 141,113 86,630 54,482
(d)
Loans
959,497
Bad debt reserve
(*1)
(769)
– 258,587 696,555 955,142 958,728 (3,585)
Total assets 2,858,408 819,977 696,555 4,374,941 4,555,574 (180,633)
Bonds issued – 605,478 96,280 701,759 714,743 (12,983)
Total liabilities – 605,478 96,280 701,759 714,743 (12,983)
(*1) Bad debt reserve for loans is deducted from the carrying amount.
Data Section
173
MS&AD INSURANCE GROUP HOLDINGS
174
INTEGRATED REPORT 2023
(Note 2) Financial assets and liabilities measured at fair value on the consolidated balance sheet and categorized within Level 3
The Level 3 fair value mostly comprises instruments with unadjusted prices obtained from third parties. Accordingly, notes such as quantitative information
on significant unobservable inputs used to measure fair value are omitted.
(1) Reconciliation from beginning balance to ending balance, and net unrealized gains/losses recognized in profit or loss
Yen in millions
March 31, 2022
Beginning balance
Recorded in prot or
loss for the current
scal year
(*1)
Recorded in other
comprehensive income
(*2)
Changes due to
purchases, issues,
sales and settlements
Transfer from Level 3
fair value
(*3)(*4)
Ending balance
Net unrealized gains/
(losses) recorded in
prot or loss on nancial
assets and liabilities
held at the consolidated
balance sheet date
(*1)
Monetary claims bought
5,927 0 (113) (1,445) – 4,368 –
Money trusts
71,571 29,494 7,125 278,672 – 386,862 26,849
Securities:
Trading securities
75,527 8,886 8,340 7,575 – 100,330 4,946
Available-for-sale securities
171,669 8,632 76,117 (5,453) (1,000) 249,966 –
Total assets 324,695 47,014 91,469 279,347 (1,000) 741,527 31,795
Derivative transactions
(*5)
(789) 1,064 – (591) – (316) 183
(*1) Mainly included in “Investment income” and “Investment expenses” of the consolidated statement of income.
(*2) Included in “Other comprehensive income” of the consolidated statement of comprehensive income, as a component of “Net unrealized gains/(losses) on securities” or “Foreign currency
translation adjustments”.
(*3) Transfers between levels are made at the end of each quarter.
(*4) Transfer from Level 3 to Level 2 due to that observable inputs for foreign corporate bonds became available.
(*5) Derivative assets and liabilities included in Other assets and Other liabilities are presented on a net basis. Receivables and payables as well as gains and losses arising from derivative
transactions are netted, and items that result in a net payable or a net loss in total is presented in parentheses.
Yen in millions
March 31, 2023
Beginning balance
Recorded in prot or
loss for the current
scal year
(*1)
Recorded in other
comprehensive
income
(*2)
Changes due to
purchases, issues,
sales and settlements Others
(*3)
Ending balance
Net unrealized gains/
(losses) recorded in
prot or loss on nancial
assets and liabilities
held at the consolidated
balance sheet date
(*1)
Monetary claims bought
4,368 0 (72) (1,204) – 3,091 –
Money trusts
386,862 38,063 4,887 156,356 – 586,170 16,566
Securities:
Trading securities
100,330 16,568 10,194 (4,471) – 122,621 13,195
Available-for-sale securities
249,966 9,900 22,258 23,736 720 306,582 –
Total assets
741,527 64,532 37,268 174,416 720 1,018,465 29,761
Derivative transactions
(*4)
(316) 1,009 – (580) – 112 752
(*1) Included in “Investment income” and “Investment expenses” of the consolidated statement of income.
(*2) Included in “Other comprehensive income” of the consolidated statement of comprehensive income, as a component of “Net unrealized gains/(losses) on securities” or “Foreign currency
translation adjustments”.
(*3) Includes increase due to business combination.
(*4) Derivative assets and liabilities included in Other assets and Other liabilities are presented on a net basis. Receivables and payables as well as gains and losses arising from derivative
transactions are netted, and items that result in a net payable or a net loss in total is presented in parentheses.
(2) Descriptions of the valuation process of fair value
At the Group, departments that are independent from those responsible for transactions of financial instruments stipulate policies and procedures on the
fair value measurement and measure fair value. With regard to the measured fair value, the appropriateness of the inputs and valuation techniques used to
measure fair value are verified. When using quoted prices obtained from third parties as fair value, the appropriateness is verified by suitable methods such
as reviewing the inputs and valuation techniques used and comparing with the fair value of similar financial instruments.
(Note 3)
The carrying amounts of stocks and other securities without market prices and investments in partnerships etc. as of March 31, 2022 and March 31,
2023, which are not included in “(c) Securities” in Fair value of financial instruments and breakdown by level of fair value above, are as follows:
Yen in millions
March 31, 2022 March 31, 2022
Stocks and other securities without market prices
(*1)(*3)
338,763
358,089
Investments in partnerships etc.
(*2)(*4)
58,671
71,315
Total 397,435
429,405
(*1) Stocks and other securities without market prices include unlisted stocks, etc., and are not subject to fair value disclosure in accordance with the Paragraph 5 of ASBJ Guidance No. 19 “Implemen-
tation Guidance on Disclosures about Fair Value of Financial Instruments.”
(*2) Investments in partnerships etc. are not subject to fair value disclosure, in accordance with the Paragraph 24-16 of ASBJ Guidance No. 31 “Revised Implementation Guidance on Accounting
Standard for Fair Value Measurement.”
(*3) Impairment losses on stocks and other securities without market prices for the years ended March 31, 2022 and March 31, 2023 were ¥3,552 million and ¥8,237 million, respectively.
(*4) Impairment losses on investments in partnerships etc. for the years ended March 31, 2022 and March 31, 2023 were ¥0 million and ¥4 million, respectively.
Yen in millions
March 31, 2023
Within 1 year Over 1 to 5 years Over 5 to 10 years Over 10 years
Cash, deposits and savings 2,738,594 32,121 – 1,250
Monetary claims bought
134,678 4,750 – 2,976
Securities:
Held-to-maturity securities:
Government bonds
3,400 116,500 188,500 770,600
Corporate bonds 500 27,502 31,300 55,100
Foreign securities – 1,232 1,657 1,402
Debt securities earmarked for underwriting reserves:
Government bonds
– – – 1,807,300
Municipal bonds
– – – 9,000
Corporate bonds
3,100 5,050 1,200 110,800
Foreign securities
6,589 91,159 186,015 41,437
Available-for-sale securities with fixed maturities:
Government bonds
57,290 231,770 308,640 714,724
Municipal bonds
9,210 82,504 58,476 47,471
Corporate bonds
119,995 543,542 241,030 168,090
Foreign securities
196,755 1,160,114 1,245,731 391,244
Loans
(*)
130,154 561,414 117,639 84,109
Total 3,400,267 2,857,661 2,380,191 4,205,506
(*) The amounts in the above table do not include ¥727 million of loans in which repayments cannot be expected since the debtors are legally bankrupt, substantially bankrupt or likely to go bankrupt,
and ¥65,437 million of loans without fixed maturities.
(Note 4) Maturity analysis of monetary assets and securities with fixed maturities
Yen in millions
March 31, 2022
Within 1 year Over 1 to 5 years Over 5 to 10 years Over 10 years
Cash, deposits and savings 2,318,829 37,323 – 850
Monetary claims bought
142,125 – – 4,180
Securities:
Held-to-maturity securities:
Government bonds
– 100,200 136,900 838,900
Corporate bonds – 23,502 9,600 81,300
Foreign securities
– 1,174 1,579 1,336
Debt securities earmarked for underwriting reserves:
Government bonds
– – – 1,786,200
Municipal bonds – – – 9,000
Corporate bonds 1,100 3,700 4,650 110,300
Foreign securities
26,554 455,767 209,491 66,670
Available-for-sale securities with fixed maturities:
Government bonds
36,380 321,650 312,940 924,784
Municipal bonds
10,335 57,012 82,504 67,120
Corporate bonds
139,309 503,822 285,034 169,065
Foreign securities 131,134 924,515 949,849 311,014
Loans
(*)
136,810 543,874 149,147 90,227
Total 2,942,580 2,972,541 2,141,697 4,460,949
(*) The amounts in the above table do not include ¥196 million of loans in which repayments cannot be expected since the debtors are legally bankrupt, substantially bankrupt or likely to go bankrupt,
and ¥64,966 million of loans without fixed maturities.
Data Section
175
MS&AD INSURANCE GROUP HOLDINGS
176
INTEGRATED REPORT 2023
(Note 5) Maturity analysis of bonds issued
Yen in millions
March 31, 2023
Within 1 year Over 1 to 2 years Over 2 to 3 years Over 3 to 4 years Over 4 to 5 years Over 5 years
Bonds issued
(*)
– 100,000 – 153,840 – 360,000
Total
– 100,000 – 153,840 – 360,000
(*) The amounts in the above table do not include ¥100,902 million of bond issued without fixed maturities.
Yen in millions
March 31, 2022 March 31, 2023
Carrying amount 76,237 76,893
Fair value 143,572 132,640
Notes:
1. Carrying amount represents the acquisition cost less accumulated depreciation.
2. Fair value is primarily determined based on the appraisal values provided by qualified external appraisers. With respect to the properties with no substantial changes in their appraisal values or indices
that were considered to appropriately reflect market prices since most recent appraisal dates, the fair value is determined based on these appraisal values or the values adjusted by the relevant
indices.
10. Certain consolidated subsidiaries own investment properties in Tokyo and other areas. The carrying amounts and fair value of
the investment properties are as follows:
Yen in millions
March 31, 2022
Within 1 year Over 1 to 2 years Over 2 to 3 years Over 3 to 4 years Over 4 to 5 years Over 5 years
Bonds issued
(*)
22,000 – 100,000 – 150,000 410,000
Total 22,000 – 100,000 – 150,000 410,000
(*) The amounts in the above table do not include ¥100,902 million of bond issued without fixed maturities.
11. Business combination
(Business combination through acquisition)
The Company’s consolidated subsidiary, MSI, through its foreign consolidated subsidiary, US Holdings, acquired an equity interest in Transverse on
January 3, 2023, making Transverse a consolidated subsidiary.
Transverse is a non-life insurance group in the U.S., and is engaged in the business of transferring most of the risks associated with insurance policies
underwritten via Managing General Agents (“MGA”) (see note below) to reinsurers, while retaining some risks as a primary insurer.
(Note) MGA
An agent authorized by an insurance company to underwrite insurance and to adjust or assess the amount of damage, in addition to insurance
solicitation.
(1) Overview of business combination
(i) Name and business of the acquired company
Name of the acquired company: Transverse Insurance Group, LLC
Description of the business: Holding company with non-life insurance
companies and other businesses under its umbrella
(ii) Main reasons for business combination
The acquisition of Transverse is expected to increase earnings by capturing growth in the U.S. MGA market and have group synergies such as
expanding business opportunities by enhancing Transverse’s creditworthiness against the backdrop of MSI’s strong financial base.
(iii) Date of business combination
January 3, 2023 (deemed acquisition date: January 1, 2023)
(iv) Legal form of business combination
Acquisition of equity interest
(v) Name of the company after the business combination
Transverse Insurance Group, LLC
(vi) Percentage of voting rights acquired
100%
(vii) Grounds for determining the acquiring company
The Company’s consolidated subsidiary, MSI, acquired all of the voting rights of Transverse through US Holdings.
(2) Period of the acquired company’s financial results included in the consolidated financial statements
The fiscal year end of the acquired company is December 31, but since the difference with the end of the consolidated fiscal year does not exceed three
months, the financial statements of the acquired company as of December 31 are used in preparing the consolidated financial statements. The deemed
acquisition date of this business combination is January 1, 2023, and since the balance sheet only is consolidated, the consolidated statement of income
does not include financial results of the acquired company.
(3) Acquisition cost of the acquired company and breakdown by type of consideration
Consideration for acquisition (Cash) US$399 million
Acquisition cost US$399 million
(4) Description and amount of major acquisition-related expenses
Advisory fees, etc. ¥683 million
(5) Amount of goodwill recognized, reason for recognition, amortization method, and amortization period
(i) Amount of goodwill recognized
US$138 million
(ii) Reason for recognition
The amount invested exceeded the net amount of assets acquired and liabilities assumed.
(iii) Amortization method and period
Amortized on a straight-line basis over a period of ten (10) years
(6) Amounts of assets acquired and liabilities assumed on the date of business combination and their breakdown
US$ in millions
Total assets 974
(of which, policy liabilities) 473
(of which, intangible fixed assets) 240
Total liabilities 710
(of which, policy liabilities) 490
(7) Amount of acquisition cost allocated to intangible fixed assets other than goodwill and its breakdown by type and weighted average amortization period
for the total and by type
Customer relationships: US$240 million
Amortization period: 10 years
(8) Details of the contingent consideration stipulated in the business combination agreement and the accounting policy after the consolidated accounting
period in which the business combination is completed
(i) Details of the contingent consideration
The Company has adopted a performance-based additional payment clause that pays a certain additional amount based on the level of performance
of the acquired company after the acquisition.
(ii) Accounting policies after the consolidated accounting period in which the business combination is completed
In the event of additional payment of the consideration, the acquisition price, which is deemed to have been paid at the time of acquisition, the
amount of goodwill and amortization of goodwill are adjusted accordingly.
12. The amounts of net assets per share are as follows:
March 31, 2022 March 31, 2023
Net assets per share (in ¥) 5,955.21
5,633.94
Stock acquisition rights deducted from net assets (in ¥ million) 762
558
Non-controlling interests deducted from net assets (in ¥ million) 43,099
45,671
Outstanding common stock (in thousands of shares) 547,232
534,268
Data Section
177
MS&AD INSURANCE GROUP HOLDINGS
178
INTEGRATED REPORT 2023
NOTES TO CONSOLIDATED STATEMENTS OF INCOME
1. Life insurance premiums are presented at an amount of premium income less cash surrender value or withdrawals (hereinafter
referred to as “surrender benefits”) and ceding reinsurance premiums paid. The breakdown of life insurance premiums is as
follows:
Yen in millions
For the year ended
March 31, 2022
For the year ended
March 31, 2023
Premium income 1,356,791
1,743,707
Surrender benefits and ceding reinsurance premiums paid (836,753)
(1,290,128)
Life insurance premiums
520,037
453,578
2. The amounts of gains on derivative transactions to reduce the currency risks of foreign currency reinsurance transactions,
included in other underwriting income, are as follows:
Yen in millions
For the year ended
March 31, 2022
For the year ended
March 31, 2023
5,761
6,210
3. The amounts of foreign exchange gains/(losses) included in other investment income/(expenses) are as follows:
Yen in millions
For the year ended
March 31, 2022
For the year ended
March 31, 2023
178,533
(13,676)
4. Major components of business expenses are as follows:
Yen in millions
For the year ended
March 31, 2022
For the year ended
March 31, 2023
Commission expenses 717,494 772,616
Salaries 303,684 306,745
Note: Business expenses represent the aggregate amount of Loss adjustment expenses, Operating expenses and general and administrative expenses, and Commissions and collection expenses
presented in the consolidated statements of income.
5. Impairment losses recognized on fixed assets are as follows:
For the year ended March 31, 2022
Yen in millions
Use Category Description Impairment losses on fixed assets
Breakdown
Investment properties Buildings 2 properties, including a building for rent in Tokyo 1 Buildings 1
Idle real estate and real estate
for sale
Land and buildings
and other
16 properties, including an office building in Ishikawa 2,683
Land
Buildings
Other
618
1,938
125
Fixed assets used for the insurance business operations are grouped as a single asset group by each insurance company. Other assets such as investment
properties, idle real estate and assets for sale are grouped on an individual basis.
Due to the disposal in the near future, the determination of demolition or other reasons, the carrying amounts of the assets in the above table were reduced to
recoverable amounts, and the aggregate difference between them was recognized as impairment losses on fixed assets under “Extraordinary losses”.
The recoverable amounts of assets to be disposed represent their net sales value, which are determined based on the appraisal value provided by qualified
appraisers.
For the year ended March 31, 2023
Yen in millions
Use Category Description Impairment losses on fixed assets
Breakdown
Investment properties Buildings Building for rent in Tokyo
0 Buildings 0
Idle real estate and real estate
for sale
Land and buildings
and other
15 properties, including a training center in Kanagawa
1,800
Land
Buildings
Other
1,132
668
0
Fixed assets used for the insurance business operations are grouped as a single asset group by each insurance company. Other assets such as investment
properties, idle real estate and assets for sale are grouped on an individual basis.
Due to a decline in real estate prices and the disposal in the near future, the carrying amounts of the assets in the above table were reduced to recoverable
amounts, and the aggregate difference between them was recognized as impairment losses on fixed assets under “Extraordinary losses”.
The recoverable amounts of assets to be disposed represent their net sales value, which are determined based on the appraisal value provided by qualified
appraisers.
6. Details of Other extraordinary losses are as follows:
For the year ended March 31, 2022
Other extraordinary losses include special funding, etc. of ¥4,721 million in relation to the outside career change support program in MSI and additional
retirement benefits of ¥354 million due to the personnel reduction at overseas consolidated subsidiaries.
For the year ended March 31, 2023
Other extraordinary losses represent special funding, etc. in relation to the outside career change support program in MSI.
7. The amounts of net income attributable to owners of the parent per share are as follows:
For the year ended
March 31, 2022
For the year ended
March 31, 2023
Basic net income attributable to owners of the parent per share (in ¥) 474.52 299.80
Diluted net income attributable to owners of the parent per share (in ¥) 474.32 299.70
Note:
The basis of calculation is as follows:
For the year ended
March 31, 2022
For the year ended
March 31, 2023
Net income attributable to owners of the parent (in ¥ million) 262,799 161,530
Average outstanding common stock during the year (in thousands of shares)
553,816 538,791
Increase in number of common stock used for calculation of diluted net income attributable to owners
of the parent (in thousands of shares) 235 173
Data Section
179
MS&AD INSURANCE GROUP HOLDINGS
180
INTEGRATED REPORT 2023
NOTES TO CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Yen in millions
For the year ended
March 31, 2022
For the year ended
March 31, 2023
Net unrealized gains/(losses) on securities:
Gains/(losses) arising during the period
9,316 (357,047)
Reclassification adjustments
(97,290) (113,426)
Before income tax effect adjustments (87,974) (470,474)
Income tax effects 25,545 123,367
Net unrealized gains/(losses) on securities (62,428) (347,106)
Net deferred gains/(losses) on hedges:
Gains/(losses) arising during the period
(12,451) (25,474)
Reclassification adjustments
(8,464) (4,040)
Before income tax effect adjustments
(20,916) (29,514)
Income tax effects
5,506 8,152
Net deferred gains/(losses) on hedges
(15,409) (21,362)
Foreign currency translation adjustments:
Gains/(losses) arising during the period
109,422 129,610
Actuarial gains/(losses) on retirement benefits:
Gains/(losses) arising during the period
(1,556) (13,382)
Reclassification adjustments
(1,794) (2,107)
Before income tax effect adjustments
(3,351) (15,490)
Income tax effects 1,089 4,447
Actuarial gains/(losses) on retirement benefits (2,261) (11,042)
Share of other comprehensive income/(loss) of equity method investments:
Gains/(losses) arising during the period
22,196 3,032
Reclassification adjustments
(6,996) 930
Share of other comprehensive income/(loss) of equity method investments
15,199 3,962
Total other comprehensive income 44,521 (245,938)
1. Reclassification adjustments and income tax effects of other comprehensive income
NOTES TO CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
in thousands of shares
Beginning balance Increase Decrease Ending balance
Issued stock:
Common stock 593,473 159
-
593,632
Total 593,473 159
-
593,632
Treasury stock:
Common stock 35,263 11,215 78 46,400
Total 35,263 11,215 78 46,400
Notes:
1. The increase in the total number of common stock issued and outstanding during the year was 159 thousand shares, as a result of the issuance of stocks with restrictions on transfer.
2. The number of treasury common stock at the end of the year includes 213 thousand Company’s shares held in the trust established under the share compensation plan.
3. The increase in the number of treasury common stock during the year was 11,215 thousand shares, which is due to open market repurchases of 10,988 thousand shares, purchases by the trust
established under the share compensation plan of 213 thousand shares, and repurchases of 13 thousand fractional shares.
4. The decrease in the number of treasury common stock during the year was 78 thousand shares, which is due to exercise of stock acquisition rights of 77 thousand shares, and sales of 0 thousand
fractional shares.
For the year ended March 31, 2022
1. Type and number of issued stock and treasury stock
(2) Dividends declared effective after March 31, 2022 for which the date of record is in the year ended March 31, 2022
Resolution Type of shares
Aggregate amount
of dividends
(Yen in millions)
Source of dividends
Dividends per share
(in Yen) Date of record Effective date
General shareholders’ meeting to
be held on June 27, 2022
Common stock 53,375
Retained
earnings
97.5 March 31, 2022 June 28, 2022
Notes:
1. Date of record is the date to determine shareholders who are entitled to receive dividends.
2. Aggregate amount of dividends resolved at the General shareholders’ meeting to be held on June 27, 2022 includes dividends of ¥20 million for the Company’s shares held in trust accounts by
overseas consolidated subsidiaries that have the performance-based share compensation plan.
(1) Dividends paid
Resolution Type of shares
Aggregate amount of dividends
(Yen in millions)
Dividends per share
(in Yen) Date of record Effective date
General shareholders’ meeting held
on June 28, 2021
Common stock 44,656 80 March 31, 2021 June 29, 2021
Board meeting held on November
19, 2021
Common stock 45,712 82.5 September 30, 2021 December 6, 2021
Note: Date of record is the date to determine shareholders who are entitled to receive dividends.
3. Dividends
Yen in millions
Category Breakdown Ending balance
Filer
Stock acquisition rights as stock options 762
Total
762
2. Stock acquisition rights
Data Section
181
MS&AD INSURANCE GROUP HOLDINGS
182
INTEGRATED REPORT 2023
in thousands of shares
Beginning balance Increase Decrease Ending balance
Issued stock:
Common stock 593,632 134 57,800 535,967
Total 593,632 134 57,800 535,967
Treasury stock:
Common stock 46,400 13,159 57,862 1,698
Total 46,400 13,159 57,862 1,698
Notes:
1. The increase in the total number of common stock issued and outstanding during the year was 134 thousand shares, as a result of the issuance of stocks with restrictions on transfer.
2. The decrease in the total number of common stock issued and outstanding during the year was 57,800 thousand shares, as a result of the cancellation of treasury stock.
3. The number of treasury common stock at the beginning and the end of the year includes 213 thousand and 1,430 thousand Company’s shares held in the trust established under the share
compensation plan.
4. The increase in the number of treasury common stock during the year was 13,159 thousand shares, which is due to open market repurchases of 11,930 thousand shares, purchases by the trust
established under the share compensation plan of 1,216 thousand shares, and repurchases of 12 thousand fractional shares.
5. The decrease in the number of treasury common stock during the year was 57,862 thousand shares, which is due to the cancellation of treasury stock of 57,800 thousand shares, exercise of stock
acquisition rights of 61 thousand shares, and sales of 0 thousand fractional shares.
For the year ended March 31, 2023
1. Type and number of issued stock and treasury stock
(2) Dividends declared effective after March 31, 2023 for which the date of record is in the year ended March 31, 2023
Resolution Type of shares
Aggregate amount
of dividends
(Yen in millions)
Source of dividends
Dividends per share
(in Yen) Date of record Effective date
General shareholders’ meeting to
be held on June 26, 2023
Common stock 53,569
Retained
earnings
100 March 31, 2023 June 27, 2023
Notes:
1. Date of record is the date to determine shareholders who are entitled to receive dividends.
2. Aggregate amount of dividends in accordance with a resolution to be passed at the June 26, 2023 General Shareholders’ Meeting includes dividends of 143 million yen for the Company’s shares held
in the trust established under the share compensation plan.
(1) Dividends paid
Resolution Type of shares
Aggregate amount of dividends
(Yen in millions)
Dividends per share
(in Yen) Date of record Effective date
General shareholders’ meeting held
on June 27, 2022
Common stock 53,375 97.5 March 31, 2022 June 28, 2022
Board meeting held on November
18, 2022
Common stock 53,570 100 September 30, 2022 December 5, 2022
Notes:
1. Date of record is the date to determine shareholders who are entitled to receive dividends.
2. Aggregate amount of dividends in accordance with a resolution to be passed at the June 27, 2022 General Shareholders’ Meeting includes dividends of 20 million yen for the Company’s shares held
in the trust established under the share compensation plan.
3. Aggregate amount of dividends in accordance with a resolution to be passed at the November 18, 2022 Board meeting includes dividends of 143 million yen for the Company’s shares held in the
trust established under the share compensation plan.
3. Dividends
Yen in millions
Category Breakdown Ending balance
Filer
Stock acquisition rights as stock options 558
Total
558
2. Stock acquisition rights
NOTES TO CONSOLIDATED STATEMENTS OF CASH FLOWS
Yen in millions
2022 2023
Cash, deposits and savings 2,357,036
2,771,981
Monetary claims bought 146,489
142,976
Securities 16,959,321
16,149,338
Time deposits exceeding three months and deposits pledged as collateral (220,906)
(273,246)
Monetary claims bought other than cash equivalents (52,699)
(49,408)
Securities other than cash equivalents (16,933,025)
(16,095,209)
Cash and cash equivalents 2,256,216
2,646,431
Yen in millions
Policy liabilities
62,840
Intangible fixed assets
31,874
Other assets
34,614
129,329
Goodwill
18,345
Policy liabilities
(65,081)
Other liabilities
(29,156)
Total liabilities
(94,237)
Non-controlling interests
(481)
Acquisition cost of Transverse’ shares
52,956
Cash and cash equivalents held at Transverse
(6,456)
Other payables included in acquisition cost of Transverse’ shares
(1,497)
Net consideration paid for acquisition of Transverse
45,002
1. Reconciliation of balance sheet items to cash and cash equivalents
3. Cash flows from investing activities include those from investments made as part of the insurance business.
2. Major components of assets and liabilities of newly consolidated subsidiaries due to acquisition of shares
For the year ended March 31, 2023
Transverse has been included in the scope of consolidation. The components of assets and liabilities at the acquisition date, the acquisition cost of an equity
interest in Transverse and net consideration paid for acquisition of Transverse are as follows:
Data Section
183
MS&AD INSURANCE GROUP HOLDINGS
184
INTEGRATED REPORT 2023
Summary of Business Results of Main Consolidated Subsidiaries
MITSUI SUMITOMO INSURANCE CO., LTD. (NON-CONSOLIDATED)
Non-Consolidated Balance Sheets
Yen in millions
Items
March 31, 2022 March 31, 2023
(Assets)
Cash, deposits and savings: ¥759,266 ¥621,815
Cash on hand 8 4
Deposits in banks 759,257 621,810
Monetary claims bought 4,368 3,091
Money trusts 474 494
Investments in securities: 5,524,192 5,288,584
Government bonds 701,440 605,721
Municipal bonds 83,840 77,611
Corporate bonds 566,486 534,191
Domestic stocks 1,968,509 1,785,604
Foreign securities 2,106,705 2,166,296
Other securities 97,209 119,158
Loans: 410,660 403,552
Policy loans 4,188 3,319
General loans 406,472 400,232
Tangible fixed assets: 207,534 202,456
Land 75,891 75,299
Buildings 112,725 111,554
Construction in progress 2,257 1,139
Other tangible fixed assets 16,660 14,462
Intangible fixed assets: 93,554 84,760
Software 80,586 61,744
Other intangible fixed assets 12,968 23,016
Other assets: 359,190 358,873
Premiums receivable 6,791 4,917
Due from agencies 121,635 115,480
Co-insurance accounts receivable 10,511 9,018
Reinsurance accounts receivable 46,558 62,050
Foreign reinsurance accounts receivable 50,230 60,903
Agency business accounts receivable 602 786
Other receivables 52,524 34,467
Accrued income 4,465 4,964
Guarantee deposits 10,386 11,808
Deposits with the Japan Earthquake Reinsurance Company 2,944 1,741
Suspense payments 43,940 48,384
Initial margins for future transactions 1,372 1,474
Derivative financial instruments 3,458 2,607
Cash collateral pledged under derivative transactions 3,767 268
Prepaid pension expenses – 19,783
Customers’ liabilities under acceptances and guarantees 16,822 19,362
Bad debt reserve (1,736) (2,751)
Total assets ¥7,374,326 ¥7,000,023
Yen in millions
Items
March 31, 2022 March 31, 2023
(Liabilities)
Policy liabilities: ¥3,755,418 ¥3,759,612
Outstanding claims 726,484 767,681
Underwriting reserves 3,028,933 2,991,931
Bonds issued 630,902 580,902
Other liabilities: 621,956 437,504
Co-insurance accounts payable 11,754 14,093
Reinsurance accounts payable 55,772 56,068
Foreign reinsurance accounts payable 26,097 42,856
Agency business accounts payable 520 489
Payables under securities lending transactions 161,831 72,200
Borrowings 198,381 100,000
Income taxes payable 5,300 5,372
Deposits received 59,283 68,201
Unearned income 14 15
Other payables 48,117 32,323
Suspense receipts 21,071 22,310
Derivative financial instruments 12,924 2,675
Cash collateral received under derivative transactions 16,063 16,561
Lease obligations 778 300
Asset retirement obligations 3,990 4,028
Other liabilities 53 6
Reserve for pension and retirement benefits 84,660 86,191
Reserve for retirement benefits for officers 171 130
Accrued bonuses for employees 9,806 9,609
Reserve for stock payments –
478
Reserves under the special laws: 27,332 31,590
Reserve for price fluctuation 27,332 31,590
Deferred tax liabilities 138,075 112,111
Acceptances and guarantees
16,822 19,362
Total liabilities 5,285,144 5,037,491
(Net assets)
Common stock 139,595 139,595
Capital surplus: 93,107 93,107
Additional paid-in capital 93,107 93,107
Retained earnings: 704,391 709,093
Legal earned reserve 46,487 46,487
Other retained earnings: 657,904 662,605
Tax-exempted reserve for accelerated depreciation 16,197 15,625
Retained earnings brought forward 641,706 646,980
Total shareholders’ equity 937,095 941,796
Net unrealized gains/(losses) on investments in securities 1,134,070 1,006,761
Net deferred gains/(losses) on hedges 18,015 13,972
Total valuation and translation adjustments 1,152,086 1,020,734
Total net assets 2,089,181 1,962,531
Total liabilities and net assets ¥7,374,326 ¥7,000,023
Data Section
185
MS&AD INSURANCE GROUP HOLDINGS
186
INTEGRATED REPORT 2023
MITSUI SUMITOMO INSURANCE CO., LTD. (NON-CONSOLIDATED)
Non-Consolidated Statements of Income Non-Consolidated Solvency Margin Ratio
Yen in millions
Items
Year ended March 31, 2022 Year ended March 31, 2023
Ordinary income: ¥1,888,581 ¥1,956,362
Underwriting income: 1,682,089 1,724,480
Net premiums written 1,579,325 1,629,832
Deposit premiums from policyholders 38,231 31,397
Investment income on deposit premiums from policyholders 26,543 25,531
Reversal of underwriting reserves 35,031 35,553
Foreign exchange gains 2,180 1,636
Other underwriting income 777 530
Investment income: 201,655 226,104
Interest and dividends income 127,237 134,995
Investment gains on money trusts 203 20
Gains on sales of securities 91,349 110,702
Gains on redemption of securities 206 1,866
Gains on derivative transactions 2,903 –
Foreign exchange gains 6,168 3,936
Other investment income 128 115
Transfer of investment income on deposit premiums from policyholders (26,543) (25,531)
Other ordinary income 4,836 5,776
Ordinary expenses: 1,704,347 1,815,137
Underwriting expenses: 1,419,566 1,519,927
Net claims paid 831,256 944,572
Loss adjustment expenses 100,710 103,503
Commissions and collection expenses 300,572 308,339
Maturity refunds to policyholders 128,375 112,220
Dividends to policyholders 50 47
Provision for outstanding claims 57,624 50,595
Other underwriting expenses 976 648
Investment expenses: 40,404 52,098
Losses on sales of securities 599 19,341
Impairment losses on securities 30,708 26,137
Losses on redemption of securities 157 38
Losses on derivative transactions – 2,294
Other investment expenses 8,940 4,287
Operating expenses and general and administrative expenses 234,209 236,770
Other ordinary expenses: 10,166 6,340
Interest expense 9,740 4,881
Provision for bad debts 3 1,198
Losses on bad debts 0 150
Other ordinary expenses 422 110
Ordinary profit 184,234 141,224
Extraordinary income: 13,777 13,745
Gains on sales of fixed assets 13,777 13,745
Extraordinary losses: 11,682 13,548
Losses on sales of fixed assets 1,958 2,186
Impairment losses on fixed assets 807 466
Provision for reserves under the special laws: 4,193 4,258
Provision for reserve for price fluctuation 4,193 4,258
Other extraordinary losses
4,721 6,637
Income before income taxes 186,329 141,421
Income taxes – current 278 8,658
Income taxes – deferred 40,306 24,863
Total income taxes 40,585 33,522
Net income ¥145,744 ¥107,899
Yen in millions
March 31, 2022 March 31, 2023
(A) Total amount of solvency margin ¥3,598,612 ¥3,405,349
Total net assets 866,008 879,498
Reserve for price fluctuation 27,332 31,590
Contingency reserve 325 814
Catastrophe reserve 625,266 620,474
General bad debt reserve 78 351
Net unrealized gains/(losses) on investments in securities and net deferred gains/(losses) on hedges
(prior to tax effect deductions)
1,415,205 1,255,835
Net unrealized gains/(losses) on land 55,081 52,102
Excess of policyholders’ contract deposits (a) – –
Subordinated debts, etc. (b) 380,902 330,902
Amount excluded from the margin, out of (a) and (b) – –
Deductions 3,642 3,642
Others 232,054 237,421
(B) Total amount of risks
√
(R
1
+R
2
)
2
+(R
3
+R
4
)
2
+R
5
+R
6
996,144 995,234
General insurance risk (R
1
) 144,258 148,949
Insurance risk of third sector insurance contracts (R
2
) – –
Assumed interest rate risk (R
3
) 11,064 9,848
Asset management risk (R
4
) 821,285 821,033
Business administration risk (R
5
) 22,117 22,175
Catastrophe risk (R
6
) 129,267 128,932
(C) Solvency margin ratio [(A) / {(B) × 1/2}] × 100 722.5% 684.3 %
Insurance companies running their business in Japan calculate the non-consolidated solvency margin ratio pursuant to the provisions of Articles 86 and 87 of
the Insurance Business Act Enforcement Regulations and Public Notice No. 50 issued by the Ministry of Finance in 1996.
While insurance companies set aside reserves to provide for payments of insurance claims should an insured event occur, they are also required to maintain
sufficient funds to pay out in an event outside the normal range of estimates such as a major catastrophe and a significant drop in the value of their assets.
The non-consolidated solvency margin ratio, or item (C) in each of the tables below, which is calculated in accordance with the Insurance Business Act, is the
ratio of “solvency margin of insurance companies calculated based on their capital and other reserves”, or (A) the total amount of solvency margin, to “risks
exceeding the normal range of estimates”, or (B) the total amount of risks.
The non-consolidated solvency margin ratio is one of the objective indicators used by the insurance regulatory authorities to supervise insurance companies. A
non-consolidated solvency margin ratio of 200% or over indicates adequate ability to satisfy insurance claims and other payment requirements.
Data Section
187
MS&AD INSURANCE GROUP HOLDINGS
188
INTEGRATED REPORT 2023
AIOI NISSAY DOWA INSURANCE CO., LTD. (NON-CONSOLIDATED)
Non-Consolidated Balance Sheets
Yen in millions
Items
March 31, 2022 March 31, 2023
(Assets)
Cash, deposits and savings: ¥155,570 ¥232,720
Cash on hand 16 18
Deposits in banks 155,554 232,701
Money trusts 2,821 3,050
Investments in securities: 2,643,754 2,536,311
Government bonds 430,559 407,935
Municipal bonds 39,319 23,768
Corporate bonds 305,408 254,975
Domestic stocks 888,329 863,841
Foreign securities 865,355 885,682
Other securities 114,781 100,107
Loans: 245,701 260,537
Policy loans 1,479 1,081
General loans 244,222 259,456
Tangible fixed assets: 181,973 177,201
Land 71,041 69,791
Buildings 96,245 95,434
Lease assets 0 –
Construction in progress 1,620 468
Other tangible fixed assets 13,066 11,507
Intangible fixed assets: 71,174 75,119
Software 33,561 29,714
Other intangible fixed assets 37,613 45,404
Other assets: 366,920 366,106
Premiums receivable 2,949 2,231
Due from agencies 88,264 82,934
Due from foreign agencies 1,688 1,797
Co-insurance accounts receivable 6,718 5,239
Reinsurance accounts receivable 41,772 42,103
Foreign reinsurance accounts receivable 147,666 135,015
Agency business accounts receivable 340 342
Other receivables 33,790 50,742
Accrued income 6,092 5,860
Guarantee deposits 6,408 7,827
Deposits with the Japan Earthquake Reinsurance Company 1,511 677
Suspense payments 25,340 28,621
Derivative financial instruments 4,376 2,714
Prepaid pension expenses 24,930 27,789
Deferred tax assets 45,270 45,624
Customers’ liabilities under acceptances and guarantees 8,000 10,000
Bad debt reserve (966) (771)
Total assets ¥3,745,150 ¥3,733,689
Yen in millions
Items
March 31, 2022 March 31, 2023
(Liabilities)
Policy liabilities: ¥2,465,971 ¥2,432,837
Outstanding claims 623,230 632,693
Underwriting reserves 1,842,741 1,800,143
Bonds issued 72,000 50,000
Other liabilities: 320,157 392,641
Co-insurance accounts payable 4,334 3,997
Reinsurance accounts payable 41,530 42,691
Foreign reinsurance accounts payable 73,222 66,882
Agency business accounts payable 2,398 2,337
Payables under securities lending transactions 88,775 201,248
Income taxes payable 4,860 3,480
Deposits received 3,419 2,866
Unearned income 16 22
Other payables 50,538 42,826
Suspense receipts 19,774 17,744
Derivative financial instruments 30,082 7,376
Asset retirement obligations 1,204 1,168
Other liabilities 0 0
Reserve for pension and retirement benefits 39,688 42,168
Accrued bonuses for employees 7,054 6,185
Reserve for stock payments – 446
Reserves under the special laws: 33,797 35,708
Reserve for price fluctuation 33,797 35,708
Acceptances and guarantees 8,000 10,000
Total liabilities
2,946,669 2,969,987
(Net assets)
Common stock 100,005 100,005
Capital surplus: 81,207 81,207
Additional paid-in capital 52,593 52,593
Other capital surplus 28,614 28,614
Retained earnings: 197,213 199,386
Legal earned reserve 47,411 47,411
Other retained earnings: 149,802 151,974
Retained earnings brought forward 149,802 151,974
Total shareholders’ equity 378,426 380,599
Net unrealized gains/(losses) on investments in securities 420,054 383,101
Total valuation and translation adjustments 420,054 383,101
Total net assets 798,480 763,701
Total liabilities and net assets ¥3,745,150 ¥3,733,689
Data Section
189
MS&AD INSURANCE GROUP HOLDINGS
190
INTEGRATED REPORT 2023
AIOI NISSAY DOWA INSURANCE CO., LTD. (NON-CONSOLIDATED)
Non-Consolidated Statements of Income Non-Consolidated Solvency Margin Ratio
Yen in millions
March 31, 2022 March 31, 2023
(A) Total amount of solvency margin ¥1,396,160 ¥1,327,493
Total net assets 348,631 357,293
Reserve for price fluctuation 33,797 35,708
Contingency reserve 1,139 1,388
Catastrophe reserve 359,818 323,213
General bad debt reserve 205 183
Net unrealized gains/(losses) on investments in securities and net deferred gains/(losses) on hedges
(prior to tax effect deductions)
523,963 478,111
Net unrealized gains/(losses) on land 35,123 36,294
Excess of policyholders’ contract deposits (a) – –
Subordinated debts, etc. (b) 50,000 50,000
Amount excluded from the margin, out of (a) and (b) – –
Deductions 5,394 6,594
Others 48,875 51,892
(B) Total amount of risks
√
(R
1
+R
2
)
2
+(R
3
+R
4
)
2
+R
5
+R
6
368,045 319,545
General insurance risk (R
1
) 121,208 124,281
Insurance risk of third sector insurance contracts (R
2
) – –
Assumed interest rate risk (R
3
) 5,544 4,959
Asset management risk (R
4
) 241,858 242,826
Business administration risk (R
5
) 9,042 8,125
Catastrophe risk (R
6
) 83,503 34,212
(C) Solvency margin ratio [(A) / {(B) × 1/2}] × 100 758.6% 830.8%
Yen in millions
Items
Year ended March 31, 2022 Year ended March 31, 2023
Ordinary income: ¥1,422,301 ¥1,524,367
Underwriting income: 1,343,976 1,414,491
Net premiums written 1,291,344 1,335,557
Deposit premiums from policyholders 13,953 9,962
Investment income on deposit premiums from policyholders 13,654 13,971
Reversal of underwriting reserves 12,710 42,597
Foreign exchange gains 5,768 4,103
Other underwriting income 6,545 8,299
Investment income: 71,469 100,499
Interest and dividends income 56,833 63,636
Investment gains on money trusts 0 0
Gains on sales of securities 23,758 50,026
Gains on redemption of securities 3,637 22
Foreign exchange gains 860 731
Other investment income 34 52
Transfer of investment income on deposit premiums from policyholders (13,654) (13,971)
Other ordinary income 6,854 9,376
Ordinary expenses: 1,341,337 1,457,610
Underwriting expenses: 1,129,637 1,233,387
Net claims paid 694,206 809,314
Loss adjustment expenses 78,382 80,318
Commissions and collection expenses 267,882 280,114
Maturity refunds to policyholders 52,615 53,057
Dividends to policyholders 7 3
Provision for outstanding claims 35,598 9,463
Other underwriting expenses 944 1,115
Investment expenses: 12,603 27,165
Losses on sales of securities 6,460 10,880
Impairment losses on securities 3,816 2,271
Losses on redemption of securities 1 2
Losses on derivative transactions 679 10,786
Other investment expenses 1,645 3,224
Operating expenses and general and administrative expenses 196,899 194,884
Other ordinary expenses: 2,197 2,172
Interest expense 789 595
Losses on bad debts 0 0
Other ordinary expenses 1,406 1,576
Ordinary profit 80,964 66,757
Extraordinary income: 916 379
Gains on sales of fixed assets 916 379
Extraordinary losses: 9,452 11,299
Losses on sales of fixed assets 4,256 7,432
Impairment losses on fixed assets 3,295 1,955
Provision for reserves under the special laws: 1,900 1,911
Provision for reserve for price fluctuation 1,900 1,911
Income before income taxes 72,427 55,837
Income taxes – current 31,507 (998)
Income taxes – deferred (13,052) 13,640
Total income taxes 18,454 12,641
Net income ¥53,973 ¥43,195
Data Section
191
MS&AD INSURANCE GROUP HOLDINGS
192
INTEGRATED REPORT 2023
MITSUI DIRECT GENERAL INSURANCE CO., LTD. (NON-CONSOLIDATED)
Non-Consolidated Balance Sheets Non-Consolidated Statements of Income
Yen in millions
Items
March 31, 2022 March 31, 2023
(Assets)
Cash, deposits and savings: ¥17,499 ¥16,341
Deposits in banks 17,499 16,341
Investments in securities: 35,268 33,509
Municipal bonds 18,975 15,829
Corporate bonds 9,842 17,680
Other securities 6,450 –
Tangible fixed assets: 728 761
Buildings 234 213
Other tangible fixed assets 493 547
Intangible fixed assets: 4,393 5,355
Software 3,612 3,624
Other intangible fixed assets 780 1,731
Other assets: 4,917 5,104
Premiums receivable 0 0
Reinsurance accounts receivable 0 55
Other receivables 3,218 3,195
Accrued income 30 33
Income taxes receivable – 71
Guarantee deposits 439 482
Suspense payments 1,227 1,266
Other assets 0 0
Deferred tax assets 130 1,603
Bad debt reserve (3) (2)
Total assets ¥62,933 ¥62,674
(Liabilities)
Policy liabilities: 44,176 42,704
Outstanding claims 23,734 22,692
Underwriting reserves 20,442 20,012
Other liabilities: 2,267 2,486
Reinsurance accounts payable 1 1
Income taxes payable 106 93
Unearned income 24 12
Other payables 1,931 2,175
Suspense receipts 5 4
Asset retirement obligations 198 198
Reserve for pension and retirement benefits 373 432
Accrued bonuses for employees 294 332
Reserve for stock payments – 10
Reserves under the special laws: 94 100
Reserve for price fluctuation 94 100
Deferred tax liabilities 5 –
Total liabilities 47,212 46,066
(Net assets)
Common stock 39,106 39,106
Capital surplus: 9,006 9,006
Additional paid-in capital 9,006 9,006
Retained earnings: (32,284) (31,390)
Other retained earnings: (32,284) (31,390)
Retained earnings brought forward (32,284) (31,390)
Total shareholders’ equity 15,827 16,721
Net unrealized gains/(losses) on investments in securities (106) (113)
Total valuation and translation adjustments (106) (113)
Total net assets 15,720 16,607
Total liabilities and net assets ¥62,933 ¥62,674
Yen in millions
Items
Year ended March 31, 2022 Year ended March 31, 2023
Ordinary income: ¥35,941 ¥36,072
Underwriting income: 35,893 36,027
Net premiums written 35,400 34,530
Investment income on deposit premiums from policyholders 22 25
Reversal of outstanding claims – 1,041
Reversal of underwriting reserves 470 429
Investment income: 28 23
Interest and dividends income 50 49
Transfer of investment income on deposit premiums from policyholders (22) (25)
Other ordinary income 19 21
Ordinary expenses: 35,138 36,633
Underwriting expenses: 23,811 23,701
Net claims paid 19,997 20,544
Loss adjustment expenses 2,791 2,771
Commissions and collection expenses 355 385
Provision for outstanding claims 666 –
Investment expenses: – 230
Other investment expenses – 230
Operating expenses and general and administrative expenses 11,324 12,700
Other ordinary expenses: 2 1
Losses on bad debts – 0
Other ordinary expenses 2 1
Ordinary profit/(loss) 802 (561)
Extraordinary income – –
Extraordinary losses: 7 7
Losses on sales of fixed assets 0 1
Provision for reserves under the special laws: 7 6
Provision for reserve for price fluctuation 7 6
Income before income/(loss) taxes 795 (569)
Income taxes – current 184 16
Income taxes – deferred (209) (1,479)
Total income taxes (24) (1,463)
Net income ¥820 ¥894
Yen in millions
March 31, 2022 March 31, 2023
(A) Total amount of solvency margin ¥17,001 ¥17,853
Total net assets 15,827 16,721
Reserve for price fluctuation 94 100
Contingency reserve 0 0
Catastrophe reserve 1,185 1,143
General bad debt reserve 1 1
Net unrealized gains/(losses) on investments in securities and net deferred gains/(losses) on hedges
(prior to tax effect deductions)
(106) (113)
Net unrealized gains/(losses) on land – –
Excess of policyholders’ contract deposits (a) – –
Subordinated debts, etc. (b) – –
Amount excluded from the margin, out of (a) and (b) – –
Deductions – –
Others – –
(B) Total amount of risks
√
(R
1
+R
2
)
2
+(R
3
+R
4
)
2
+R
5
+R
6
5,199 5,060
General insurance risk (R
1
) 4,616 4,485
Insurance risk of third sector insurance contracts (R
2
) – –
Assumed interest rate risk (R
3
) 0 0
Asset management risk (R
4
) 994 964
Business administration risk (R
5
) 177 172
Catastrophe risk (R
6
) 300 300
(
C
)
Solvency margin ratio [(A) / {(B) × 1/2}] × 100 653.9% 705.5 %
Non-Consolidated Solvency Margin Ratio
Data Section
193
MS&AD INSURANCE GROUP HOLDINGS
194
INTEGRATED REPORT 2023
MITSUI SUMITOMO AIOI LIFE INSURANCE CO., LTD. (NON-CONSOLIDATED)
Non-Consolidated Balance Sheets
Yen in millions
Items
March 31, 2022 March 31, 2023
(Assets)
Cash, deposits and savings: ¥107,417 ¥416,761
Cash on hand 0 0
Deposits in banks 107,416 416,761
Investments in securities: 4,613,652 4,422,873
Government bonds 3,499,113 3,279,976
Municipal bonds 102,265 102,572
Corporate bonds 624,513 636,994
Domestic stocks 1,001 823
Foreign securities 315,227 341,199
Other securities 71,531 61,306
Loans: 58,990 60,780
Policy loans 58,990 60,780
Tangible fixed assets: 6,855 7,157
Buildings 346 304
Lease assets 5,377 5,728
Other tangible fixed assets 1,131 1,124
Intangible fixed assets: 28,968 25,388
Software 17,571 12,577
Other intangible fixed assets 11,396 12,811
Due from agencies 1,379 1,424
Reinsurance accounts receivable 1,274 1,221
Other assets: 54,370 42,344
Other receivables 31,159 29,678
Prepaid expenses 2,569 2,209
Accrued income 7,595 7,803
Guarantee deposits 332 328
Derivative financial instruments 24 1,079
Suspense payments 920 1,227
Other assets 11,768 18
Deferred tax assets
10,923 31,316
Bad debt reserve (91) (89)
Total assets ¥4,883,740 ¥5,009,178
Yen in millions
Items
March 31, 2022 March 31, 2023
(Liabilities)
Policy liabilities: ¥4,208,571 ¥4,362,853
Outstanding claims 38,970 40,386
Underwriting reserves 4,158,746 4,311,933
Reserve for dividends to policyholders 10,854 10,532
Due to agencies 2,949 2,989
Reinsurance accounts payable 309 362
Other liabilities: 480,344 499,428
Payables under repurchase agreements 227,342 204,822
Payables under securities lending transactions 228,535 269,048
Income taxes payable 632 1,024
Other payables 6,190 681
Accrued expenses 7,147 6,229
Unearned income 0 0
Deposits received 113 112
Derivative financial instruments 8,789 1,331
Lease obligations 239 151
Asset retirement obligations 414 408
Suspense receipts 938 590
Other liabilities – 15,027
Reserve for pension and retirement benefits 4,647 4,990
Reserve for retirement benefits for officers 5 3
Reserve for stock payments – 63
Reserves under the special laws: 11,126 12,413
Reserve for price fluctuation 11,126 12,413
Total liabilities 4,707,955 4,883,105
(Net assets)
Common stock 85,500 85,500
Capital surplus: 19,955 19,955
Additional paid-in capital 14,746 14,746
Other capital surplus 5,208 5,208
Retained earnings: 40,662 41,913
Legal earned reserve 3,630 5,924
Other retained earnings: 37,032 35,988
Reserve for specified business investments 49 49
Retained earnings brought forward 36,982 35,938
Total shareholders’ equity 146,117 147,368
Net unrealized gains/(losses) on investments in securities 29,667 (21,295)
Total valuation and translation adjustments 29,667 (21,295)
Total net assets 175,784 126,073
Total liabilities and net assets ¥4,883,740 ¥5,009,178
Data Section
195
MS&AD INSURANCE GROUP HOLDINGS
196
INTEGRATED REPORT 2023
MITSUI SUMITOMO AIOI LIFE INSURANCE CO., LTD. (NON-CONSOLIDATED)
Non-Consolidated Statements of Income Business Results
Yen in millions
Items
Year ended March 31, 2022 Year ended March 31, 2023
Ordinary income: ¥563,333 ¥565,339
Insurance premiums and others: 503,525 489,081
Insurance premiums 501,978 487,124
Reinsurance income 1,546 1,957
Investment income: 57,273 72,266
Interest and dividends income: 50,755 54,347
Interest on deposits 0 0
Interest and dividends on securities 48,830 52,246
Interest on loans 1,651 1,664
Other interest and dividends 273 436
Gains on sales of securities 6,514 17,899
Foreign exchange gains
3 16
Reversal of bad debts – 2
Other ordinary income: 2,534 3,991
Receipts of annuities with special conditions 821 777
Receipts of deferred insurance claims 1,267 1,193
Other ordinary income 446 2,021
Ordinary expenses: 524,281 537,477
Insurance claims and others: 228,942 270,101
Insurance claims 47,050 50,975
Annuity payments 20,455 21,126
Benefits 34,974 51,584
Surrender benefits 121,193 141,190
Other refunds 3,551 3,442
Reinsurance premiums 1,716 1,782
Provision for underwriting reserves and others: 200,119 154,603
Provision for outstanding claims 5,401 1,416
Provision for underwriting reserves 194,717 153,186
Provision for interest portion of reserve for dividends to policyholders 0 0
Investment expenses: 1,912 17,483
Losses on sales of securities 1,232 12,461
Impairment losses on securities – 205
Losses on derivative transactions 222 2,718
Provision for bad debts
3 –
Other investment expenses 454 2,098
Operating expenses 73,860 74,576
Other ordinary expenses: 19,447 20,712
Payments of deferred insurance claims 1,306 1,389
Taxes 7,563 7,630
Depreciation 10,130 10,166
Provision for reserve for pension and retirement benefits 413 342
Other ordinary expenses 32 1,182
Ordinary profit 39,051 27,861
Extraordinary income: 0 1
Gains on sales of fixed assets 0 1
Extraordinary losses: 1,294 1,330
Losses on sales of fixed assets 21 43
Provision for reserves under the special laws: 1,272 1,286
Provision for reserve for price fluctuation 1,272 1,286
Provision for reserve for dividends to policyholders 8,969 8,533
Income before income taxes 28,787 17,999
Income taxes – current 8,839 5,848
Income taxes – deferred (1,124) (574)
Total income taxes 7,715 5,273
Net income ¥21,072 ¥12,725
Amount of Policies in Force and New Policies
(1) Policies in force
Yen in 100 millions
March 31, 2022 March 31, 2023
Number of policies
(in thousands)
Amount
Number of policies
(in thousands)
Amount
Individual insurance 3,858 ¥232,274 3,878
¥
226,521
Individual annuities 159 6,203 153
5,977
Group insurance – 96,180 – 98,467
Group annuities – 2 – 2
Notes: 1. The amounts of individual annuities represent the total sum of (a) the funds to be held at the time annuity payments are to commence for the policies for which annuity payments have
not yet commenced and (b) the underwriting reserves for the policies for which annuity payments have commenced.
2. The amounts of group annuities represent the underwriting reserves.
(2) New policies
Yen in 100 millions
Year ended March 31, 2022 Year ended March 31, 2023
Number of
policies
(in thousands)
Number of
policies
(in thousands)
Amount
New policies
Net increase
by conversion
Amount
New policies
Net increase
by conversion
Individual insurance 228 ¥16,860 ¥16,860 – 209 ¥14,534 ¥14,534 –
Individual annuities 0 44 44 – 0 32 32 –
Group insurance – 433 433 – – 687 687 –
Group annuities – – – – – – – –
Note: The amounts of individual annuities represent the funds to be held at the time annuity payments are to commence.
Annualized Premiums
(1) Policies in force
Yen in 100 millions
March 31, 2022 March 31, 2023
Individual insurance ¥4,057 ¥4,035
Individual annuities 381 369
Total: 4,438 4,405
Medical coverage, living benefits, etc. 1,524 1,575
(2) New policies
Yen in 100 millions
Year ended March 31, 2022 Year ended March 31, 2023
Individual insurance ¥267 ¥270
Individual annuities 1 1
Total: 269 271
Medical coverage, living benefits, etc. 140 135
Notes: 1. An annualized premium is the annual total of premiums that is obtained by multiplying the amount of a single payment with the number of payments per year in accordance with the
premium payment method. An annualized premium for a lump-sum payment policy is the premium divided by the number of years of coverage.
2. “Medical coverage, living benefits, etc.” represents the portion of annualized premiums that corresponds to medical coverage benefits (for hospitalization, surgeries, etc.), living benefits (for
specified diseases, nursing care, etc.) and premium waiver benefits (excluding those for disability, but including those for specified diseases, nursing care, etc.).
Data Section
197
MS&AD INSURANCE GROUP HOLDINGS
198
INTEGRATED REPORT 2023
MITSUI SUMITOMO AIOI LIFE INSURANCE CO., LTD. (NON-CONSOLIDATED)
Non-Consolidated Business Performance Non-Consolidated Solvency Margin Ratio
Yen in millions
Year ended March 31, 2022 Year ended March 31, 2023 Change
Fundamental revenues: ¥556,869 ¥547,420 ¥(9,448)
Insurance premiums and others 503,525 489,081 (14,444)
Fundamental expenses 522,293 522,511 217
Fundamental profit 34,576 24,909 (9,666)
Capital gains/(losses) 5,008 3,122 (1,886)
Non-recurring gains/(losses) (533) (170) 362
Ordinary profit 39,051 27,861 (11,190)
Extraordinary income 0 1 0
Extraordinary losses 1,294 1,330 35
Provision for reserve for dividends to policyholders 8,969 8,533 (436)
Income taxes 7,715 5,273 (2,441)
Net income 21,072 12,725 (8,346)
Note: Since the year ended March 31, 2023, calculation of fundamental profit has been changed. As a result of the change of hedge costs on foreign exchange etc. included in capital gains/(losses),
capital gains/(losses) increased by ¥589 million and fundamental profit decreased by the same amount for the year ended March 31, 2023. Also, the amounts for the year ended March 31,
2022 were restated accordingly. As a result of gains/(losses) on cancellations of investment trusts etc., capital gains/(losses) decreased by ¥56 million and fundamental profit increased by
the same amount.
Yen in millions
March 31, 2022 March 31, 2023
(A) Total amount of solvency margin ¥398,033 ¥338,880
Total capital 134,643 141,791
Reserve for price fluctuation 11,126 12,413
Contingency reserve 40,305 40,478
General bad debt reserve 4 4
Net unrealized gains/(losses) on investments in securities and net deferred gains/(losses) on
hedges (prior to tax effect deductions) × 90% (100% in case of negative value)
37,083 (29,576)
Net unrealized gains/(losses) on land × 85% – –
Excess of continued Zillmerized reserve (a) 165,324 161,884
Subordinated debts, etc. (b) – –
Amount excluded from the margin, out of (a) and (b) – –
Brought in capital – –
Deductions – –
Others 9,545 11,884
(B) Total amount of risks √
(R
1
+R
8
)
2
+(R
2
+R
3
+R
7
)
2
+R
4
69,105 69,474
Insurance risk (R
1
) 18,369 18,163
Insurance risk of third sector insurance contracts (R
8
) 17,845 18,227
Assumed interest rate risk (R
2
) 3,263 3,274
Minimum guarantee risk (R
7
) – –
Asset management risk (R
3
) 53,400 53,702
Business administration risk (R
4
) 1,857 1,867
(C) Solvency margin ratio [(A) / {(B) × 1/2}] × 100 1,151.9% 975.5 %
Data Section
199
MS&AD INSURANCE GROUP HOLDINGS
200
INTEGRATED REPORT 2023
MITSUI SUMITOMO PRIMARY LIFE INSURANCE CO., LTD. (NON-CONSOLIDATED)
Non-Consolidated Balance Sheets Non-Consolidated Statements of Income
Yen in millions
Items
March 31, 2022 March 31, 2023
(Assets)
Cash, deposits and savings: ¥764,012 ¥764,633
Deposits in banks 764,012 764,633
Monetary claims bought 80,995 74,996
Money trusts 2,035,737 2,078,352
Investments in securities: 3,748,856 3,451,044
Government bonds 19,266 18,884
Municipal bonds 1,302 –
Corporate bonds 54,543 67,776
Foreign securities 1,789,095 1,801,060
Other securities 1,884,649 1,563,322
Loans: 288,656 261,512
Policy loans 291 237
General loans 288,365 261,275
Tangible fixed assets: 743 1,051
Buildings 274 236
Lease assets 413 728
Other tangible fixed assets 55 86
Intangible fixed assets: 12,553 11,570
Software 12,427 11,464
Lease assets 126 105
Reinsurance accounts receivable 2,482 29,533
Other assets: 39,109 37,419
Other receivables 19,046 14,627
Prepaid expenses 1,322 1,178
Accrued income 12,874 13,365
Guarantee deposits 1,507 5,824
Derivative financial instruments 4,051 1,106
Suspense payments 303 1,313
Other assets 4 4
Deferred tax assets 80,169 113,623
Bad debt reserve (9) (4)
Total assets ¥7,053,307 ¥6,823,733
(Liabilities)
Policy liabilities: 6,545,794 6,375,196
Outstanding claims 27,676 22,996
Underwriting reserves 6,518,118 6,352,199
Due to agencies 2,847 5,847
Reinsurance accounts payable 4,950 22,051
Other liabilities: 64,209 72,286
Income taxes payable 4,227 8
Other payables 159 366
Accrued expenses 4,984 5,459
Deposits received 49,113 63,330
Derivative financial instruments 3,845 383
Lease obligations 607 942
Asset retirement obligations 182 185
Suspense receipts 1,088 1,609
Reserve for stock payments – 11
Reserves under the special laws: 194,031 198,184
Reserve for price fluctuation 194,031 198,184
Total liabilities 6,811,832 6,673,577
(Net assets)
Common stock 41,060 41,060
Capital surplus: 24,735 24,735
Additional paid-in capital 24,735 24,735
Retained earnings: 182,927 180,820
Legal earned reserve 11,943 16,315
Other retained earnings: 170,983 164,505
Retained earnings brought forward 170,983 164,505
Total shareholders’ equity 248,722 246,615
Net unrealized gains/(losses) on investments in securities (782) (73,053)
Net deferred gains/(losses) on hedges (6,465) (23,405)
Total valuation and translation adjustments (7,248) (96,459)
Total net assets 241,474 150,156
Total liabilities and net assets ¥7,053,307 ¥6,823,733
Yen in millions
Items
Year ended March 31, 2022 Year ended March 31, 2023
Ordinary income: ¥1,383,799 ¥1,791,523
Insurance premiums and others: 925,619 1,349,832
Insurance premiums 812,496 1,220,420
Reinsurance income 113,123 129,411
Investment income: 453,952 266,420
Interest and dividends income: 65,569 77,123
Interest on deposits 6 115
Interest and dividends on securities 55,895 66,574
Interest on loans 9,497 10,317
Other interest and dividends 169 115
Investment gains on money trusts 156,494 162,891
Investment gains on trading securities – 117
Gains on sales of securities 14,511 6,238
Gains on redemption of securities 1,666 466
Foreign exchange gains 157,247 19,474
Reversal of bad debts – 5
Other investment income 223 103
Investment gains on separate accounts 58,239 –
Other ordinary income: 4,227 175,270
Receipts of annuities with special conditions 3,907 4,394
Reversal of outstanding claims – 4,679
Reversal of underwriting reserves – 165,919
Other ordinary income 319 277
Ordinary expenses: 1,296,009 1,760,502
Insurance claims and others: 1,174,560 1,641,421
Insurance claims 127,066 150,812
Annuity payments 84,900 86,647
Benefits 265,946 283,121
Surrender benefits 506,654 765,165
Other refunds 3,692 7,557
Reinsurance premiums 186,299 348,117
Provision for underwriting reserves and others: 63,762 –
Provision for outstanding claims 3,466 –
Provision for underwriting reserves 60,295 –
Investment expenses: 3,570 46,533
Interest expense 9 11
Investment losses on trading securities 30 –
Losses on sales of securities 3,447 13,568
Losses on redemption of securities 44 218
Provision for bad debts 9 –
Other investment expenses 28 33
Investment losses on separate accounts – 32,700
Operating expenses 44,083 59,475
Other ordinary expenses: 10,033 13,072
Taxes 5,564 8,218
Depreciation 4,447 4,850
Other ordinary expenses 21 3
Ordinary profit 87,789 31,020
Extraordinary income: – –
Extraordinary losses: 14,031 4,153
Provision for reserves under the special laws: 14,031 4,153
Provision for reserve for price fluctuation 14,031 4,153
Income before income taxes 73,758 26,867
Income taxes – current 23,566 5,878
Income taxes – deferred (2,819) 1,239
Total income taxes 20,747 7,117
Net income ¥53,011 ¥19,749
Data Section
201
MS&AD INSURANCE GROUP HOLDINGS
202
INTEGRATED REPORT 2023
MITSUI SUMITOMO PRIMARY LIFE INSURANCE CO., LTD. (NON-CONSOLIDATED)
Business Results Non-Consolidated Business Performance
Non-Consolidated Solvency Margin Ratio
Amount of Policies in Force and New Policies
(1) Policies in force
Yen in 100 millions
March 31, 2022 March 31, 2023
Number of policies
(in thousands)
Amount
Number of policies
(in thousands)
Amount
Individual insurance 665 ¥45,874 674
¥46,553
Individual annuities 353 22,161 372
22,768
Group insurance – – – –
Group annuities – – – –
Note: The amounts of individual annuities represent the total sum of (a) the funds to be held at the time annuity payments are to commence (the premium reserves in the case of individual
variable annuities) for the policies for which annuity payments have not yet commenced and (b) the underwriting reserves for the policies for which annuity payments have commenced.
(2) New policies
Yen in 100 millions
Year ended March 31, 2022 Year ended March 31, 2023
Number of
policies
(in thousands)
Number of
policies
(in thousands)
Amount
New policies
Net increase
by conversion
Amount
New policies
Net increase
by conversion
Individual insurance 87 ¥7,273 ¥7,273 – 140 ¥9,256 ¥9,256 –
Individual annuities 13 923 923 – 52 3,542 3,542 –
Group insurance – – – – – – – –
Group annuities – – – – – – – –
Note: The amounts of individual annuities represent the funds to be held at the time annuity payments are to commence (the premium reserves at the time of enrollment in the case of individual
variable annuities).
Annualized Premiums
(1) Policies in force
Yen in 100 millions
March 31, 2022 March 31, 2023
Individual insurance ¥4,284 ¥4,632
Individual annuities 2,475 2,618
Total: 6,759 7,250
Medical coverage, living benefits, etc. 6 7
(2) New policies
Yen in 100 millions
Year ended March 31, 2022 Year ended March 31, 2023
Individual insurance ¥682 ¥768
Individual annuities 160 468
Total: 842 1,236
Medical coverage, living benefits, etc. 2 1
Notes: 1. An annualized premium is the annual total of premiums that is obtained by multiplying the amount of a single payment with the number of payments per year in accordance with the
premium payment method. An annualized premium for a lump-sum payment policy is the premium divided by the number of years of coverage.
2. “Medical coverage, living benefits, etc.” represents the portion of annualized premiums that corresponds to medical coverage benefits (for hospitalization, surgeries, etc.), living benefits (for
specified diseases, nursing care, etc.) and premium waiver benefits (excluding those for disability, but including those for specified diseases, nursing care, etc.).
Yen in millions
Year ended March 31, 2022 Year ended March 31, 2023 Change
Fundamental revenues: ¥1,402,838 ¥1,840,205 ¥437,367
Insurance premiums and others 925,619 1,349,832 424,212
Fundamental expenses 1,348,807 1,766,964 418,157
Fundamental profit 54,030 73,240 19,209
Capital gains/(losses) 31,635 (34,529) (66,165)
Non-recurring gains/(losses) 2,124 (7,689) (9,813)
Ordinary profit 87,789 31,020 (56,769)
Extraordinary income – – –
Extraordinary losses 14,031 4,153 (9,877)
Provision for reserve for dividends to policyholders – – –
Income taxes 20,747 7,117 (13,629)
Net income 53,011 19,749 (33,262)
Note: Since the year ended March 31, 2023, calculation of fundamental profit has been changed. As a result of the change of hedge costs on foreign exchange etc. included in fundamental profit,
fundamental profit decreased by ¥9,846 million and capital gains/(losses) increased by the same amount for the year ended March 31, 2023. Also, the amounts for the year ended March
31, 2022 were restated accordingly. As a result of the change of hedge costs on foreign exchange etc., fundamental profit decreased by ¥803 million and capital gains/(losses) increased by
the same amount.
Yen in millions
March 31, 2022 March 31, 2023
(A) Total amount of solvency margin ¥739,516 ¥683,942
Total capital 226,865 238,985
Reserve for price fluctuation 194,031 198,184
Contingency reserve 79,070 86,766
General bad debt reserve – –
Net unrealized gains/(losses) on investments in securities and net deferred gains/
(losses) on hedges (prior to tax effect deductions) x 90% (100% in case of negative value)
(5,170) (122,474)
Net unrealized gains/(losses) on land × 85% – –
Excess of continued Zillmerized reserve (a) 188,425 221,476
Subordinated debts, etc. (b) – –
Amount excluded from the margin, out of (a) and (b) – –
Brought in capital – –
Deductions – –
Others 56,293 61,003
(B) Total amount of risks √
(R
1
+R
8
)
2
+(R
2
+R
3
+R
7
)
2
+R
4
135,086 152,103
Insurance risk (R
1
) 1,331 1,423
Insurance risk of third sector insurance contracts (R
8
) 3 3
Assumed interest rate risk (R
2
) 29,440 38,168
Minimum guarantee risk (R
7
) 1,366 1,016
Asset management risk (R
3
) 101,598 109,901
Business administration risk (R
4
) 2,674 3,010
(C) Solvency margin ratio [(A) / {(B) × 1/2}] × 100 1,094.8% 899.3 %
Data Section
203
MS&AD INSURANCE GROUP HOLDINGS
204
INTEGRATED REPORT 2023
The MS&AD Insurance Group utilizes the assessments provided by global ESG evaluation organizations
to improve its sustainability initiatives. As of July 1, 2023, the MS&AD Insurance Group was included in
the following ESG-related indices.
ESG Evaluation
We participate in global initiatives and are working to create shared value with society.
* Since 2004, MS&AD Insurance Group Holdings, Inc., has been committed to the corporate responsibility initiatives and principles of the United Nations
Global Compact in the areas of Human Rights, Labor, Environment, and Anti-Corruption.
Participation in Initiatives
* The inclusion of MS&AD Insurance Group Holdings, Inc., in any MSCI Index and the use of MSCI logos, trademarks, service marks, or index names
herein do not constitute a sponsorship, endorsement, or promotion of MS&AD Insurance Group Holdings, Inc., by MSCI or any of its affiliates. The
MSCI Indexes are the exclusive property of MSCI. MSCI and the MSCI Index names and logos are trademarks or service marks of MSCI or its affiliates.
FTSE Blossom Japan Index
MSCI Japan ESG Select
Leaders Index*
S&P/JPX Carbon
Efficient Index
ISS ESG Corporate Rating Prime
MSCI Japan Empowering
Women Index (WIN)*
Principles for Responsible Investment
30% Club Japan
The UN Global Compact*
Task Force on Climate-related
Financial Disclosures (TCFD)
Principles for Financial Action
for the 21st Century
GX League
The Japan Business Initiative
for Biodiversity (JBIB)
United Nations Environment
Programme Finance Initiative (UNEP FI)
Principles for Sustainable Insurance
Taskforce on Nature-related
Financial Disclosures (TNFD)
We are a member of the TNFD Forum.
Dow Jones Sustainability Indices
Asia Pacific
Partnership for Carbon
Accounting Financials
(PCAF
CDP investor signatory
FTSE4Good Index Series
In this report, the following abbreviations appear for company names.
MS&AD, The Group MS&AD Insurance Group
MS&AD Holdings, The holding company, or the Company MS&AD Insurance Group Holdings, Inc.
MSI, Mitsui Sumitomo Insurance Mitsui Sumitomo Insurance Co., Ltd.
ADI, Aioi Nissay Dowa Insurance Aioi Nissay Dowa Insurance Co., Ltd.
Mitsui Direct General, Mitsui Direct General Insurance Mitsui Direct General Insurance Co., Ltd.
MSI Aioi Life, MSA Life Mitsui Sumitomo Aioi Life Insurance Co., Ltd.
MSI Primary Life, MSP Life Mitsui Sumitomo Primary Life Insurance Co., Ltd.
MSIG Mitsui Sumitomo Insurance Group Holdings, Inc.
Aioi, Aioi Insurance Aioi Insurance Co., Ltd.
NDI, Nissay Dowa General Insurance Nissay Dowa General Insurance Co., Ltd.
Aioi Life Aioi Life Insurance Co., Ltd.
MS First Capital MS First Capital Insurance Limited
Challenger Challenger Limited
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MS&AD INSURANCE GROUP HOLDINGS
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Representative Director, Executive Vice President, Group CFO
Tetsuji HIGUCHI
On the Issuance of the MS&AD Integrated Report 2023
Since FY2015, the MS&AD Insurance Group has published the
Integrated Report to provide readers with a deeper
understanding of the Group’s commitment to medium- to
long-term value creation. We believe the issuance of the
Integrated Report offers the opportunity for constructive
dialogue with many stakeholders, including customers,
shareholders, investors, and employees, regarding the Group’s
“value creation story.”
In the Medium-Term Management Plan “Vision 2021,”
launched in FY2018, the Group has developed management
based on its CSV under its aspirations to be by 2030 “a
corporate group supporting a resilient and sustainable society.”
Under the Medium-Term Management Plan (2022–25), launched
in FY2022, we will accelerate efforts to translate the Group’s
deeply rooted high awareness of CSV and DX into getting results
such as providing solutions and creating new businesses.
One of our aspirations in the “MS&AD Integrated Report
2023” is that “as a platform provider of risk solutions, we will
grow together with society.” We introduce this key message and
its initiatives in our Special Feature. In addition to reviewing the
composition of the value creation story and materiality, the three
basic strategies (Value, Transformation, and Synergy) of the
Medium-Term Management Plan (2022–25) and the
sustainability and other fundamental initiatives that support these
strategies are explained, focusing on a summary of the first year
of the Plan.
With the goal of improving the objectivity and accuracy of
the Integrated Report, we have engaged the services of a
third-party assurance firm to independently verify the key
nonfinancial data indicated since FY2017. For the results of the
third-party verification included in the “MS&AD Integrated Report
2023,” see page 189. Moreover, as a representative of the
management team, the CEO has included a signed message at
the beginning of the Report. As CFO, I am responsible for the
editing process and, accordingly, reiterate the importance of
ensuring that the assembly process for the Integrated Report is
carried out responsibly and that the content in the report is
indeed accurate.
With this year’s Integrated Report, we hope to promote
amicable feelings for the Group by creating an even greater
understanding of it among stakeholders such as customers,
shareholders, investors, and employees. We continue to value
dialogue with all our stakeholders, and with the aim of further
improving disclosure and enhancing transparency we invite our
stakeholders to share with us their frank opinions.
August 2023
The MS&AD Integrated Report 2023 Editorial System
Board of Directors
Plan proposal
Whole structure
Content creation
Cooperation on
content creation
Evaluation/Feedback
Editor-in-Chief: Group CFO
MS&AD Holdings
Integrated Report Project Team
Director in charge
Related departments of MS&AD Holdings & Group companies
Production: Under the direction of the CFO, who is editor-in-chief, two people, other than those in charge of writing, confirm editorial content on every
page based on supporting materials and by checking with all relevant departments. In addition, the accuracy and reliability of the report is assured by an
independent third party, KPMG AZSA Sustainability Co., Ltd.
MS&AD Insurance Group Holdings, Inc.MS&AD Insurance Group Holdings, Inc.
Tokyo Sumitomo Twin Building (West Tower), 27-2,
Shinkawa 2-chome, Chuo-ku, Tokyo 104-0033, Japan
Corporate Communications and Investor Relations Dept.
Tel.: +81-3-5117-0311, Fax: +81-3-5117-0605
https://www.ms-ad-hd.com/en/ir/contact.html
Tokyo Sumitomo Twin Building (West Tower), 27-2,
Shinkawa 2-chome, Chuo-ku, Tokyo 104-0033, Japan
Corporate Communications and Investor Relations Dept.
Tel.: +81-3-5117-0311, Fax: +81-3-5117-0605
https://www.ms-ad-hd.com/en/ir/contact.html
<Forward-Looking Statements>
These materials contain plans, strategies, and earnings forecasts for
MS&AD Insurance Group Holdings, Inc., and Group companies. They are
based on information available to MS&AD Insurance Group Holdings, Inc.,
at the present time. Investors are advised that actual results might differ
substantially from our forecasts, for various reasons. Actual performance
could be adversely affected by 1) economic trends surrounding our
business, 2) fierce competition within the insurance sector, 3) exchange
rate fluctuations, and 4) changes in tax and other regulatory systems.
Contact InformationContact Information
(Securities code: 8725)(Securities code: 8725)
This report includes disclosure materials prepared in accordance with Articles
271-25 and 272-40 of the Insurance Business Act and Articles 210-10.2 and
211-82 of the Enforcement Regulations of the Insurance Business Act.
STEP1 STEP2 STEP3 STEP4
Planning
Examination of the
calculation method for
the data subject to
assurance and the
company’s outline of
business
Formulation of an
assurance engagement
plan based on the risk
assessment
Implementation of
assurance procedures
Implementation of a site
visit and analysis of
compiled data, etc.
Review of
draft report
Confirmation that
required corrections
have been completed
Reviewing the draft
report to determine
whether the assured
information is presented
appropriately
Submitting
the assurance report
Review by a reviewer
not directly involved in
the assurance
engagement
Submission of the
assurance report
Third-Party Assurance
To improve the objectiveness and accuracy of the MS&AD Integrated Report 2023, the MS&AD
Insurance Group has engaged KPMG AZSA Sustainability Co., Ltd., to perform third-party
assurance on the following information included in this report.
Greenhouse gas emissions
(pages 18, 47, and 49)
Total energy consumption
(pages 17 and 47)
Amount of waste discharged
(final disposal)
(page 18)
Number and ratio of female
managers
(pages 29, 48, and 49)
Number and ratio of global
employees
(page 48)
Note: Details regarding the method for
calculating data can be found on
our official website.
www.ms-ad-hd.com/en/csr/data.html
Items subject to the
assurance engagement
The third-party assurance process
MS&AD Holdings: Corporate Planning Department, Corporate Risk Management Department,
Compliance Department, Accounting Department, Human Resources & General
Administration Department, Documentation & Legal Department, and other departments
Group companies: corporate communications departments, corporate planning departments,
business departments, overseas entities, and others
Corporate Communications and Investor Relations Dept.
Corporate Sustainability Dept.
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