In a rapidly changing business landscape,
deepen capital management to build the foundation for future growth

Natural catastrophes are becoming more severe worldwide due to climate change, while geopolitical risks such as trade friction, sanctions, and military conflicts are increasingly prevalent. On the other hand, technological advances such as generative AI and autonomous driving are beginning to significantly transform business and daily life. These changes are intermingling, heightening uncertainty in energy prices, interest rates, and stock markets, creating an environment where it is difficult for both companies and individuals to predict the future. In a society where risks are increasing and changing, we aim to achieve growth by meeting customer expectations and becoming the most chosen insurance and financial group.
To become the world’s leading insurance and financial group amid such uncertain circumstances, we believe it is essential to further enhance our Enterprise Risk Management (ERM) across a wide range of areas, including our business domains. To date, we have consistently worked to enhance profitability relative to capital and risk through advanced business management, including disciplined portfolio reallocation such as withdrawing from businesses expected not to surpass the cost of capital. As a result, the international business is increasingly becoming the primary business domain for both profits and ROR*1, replacing the domestic non-life insurance business, and our past aspirations are now showing in tangible results.
Going forward, we will enhance not only profitability relative to capital and risk but also our ability to generate cash and accelerate its turnover. I am confident we can accelerate growth in a rapidly changing business environment by strengthening capital cycle management. This means starting with the cost of capital, strengthening the monitoring of returns (e.g., ROI*2, ROR) on businesses and products, consistently allocating capital to areas with high expected returns, and channeling the cash generated toward growth investment and shareholder returns. To achieve this, we will consider organizational simplification, including the merger of our two core non-life insurance companies, and an optimal organizational structure led by the holding company.

*1 Return On Risk. An indicator that shows how much profit is secured in relation to the amount of risk.
*2 Return On Investment. An indicator that shows how much profit return is made from investment.

Consolidated net premiums written (non-life) for FY2024 increased by ¥412.5 billion (up 9.7% year on year) to ¥4,674.3 billion. This growth was driven primarily by increased premiums from automobile insurance and fire insurance in the domestic non-life insurance business along with a significant increase in
premiums from overseas subsidiaries. In addition, Group adjusted profit reached a record high of ¥731.7 billion (up ¥351.8 billion year on year), driven by a significant increase in gains from the sale of strategic equity holdings in the domestic non-life insurance business and expanded profits in the international business.

The full-year Group adjusted profit forecast for FY2025 is ¥671.0 billion (down ¥60.7 billion), mainly due to a decrease in gains on sales of strategic equity holdings in the domestic non-life insurance business. Excluding gains on sales of strategic equity holdings, the domestic non-life insurance business is expected to see an increase in gross adjusted profit owing to an improvement in profitability, and the international business is expected to see a significant increase due to higher underwriting profits in each region.

For further details on capital policy and shareholder return, please refer to the following pages.

August, 2025