Group Long-Term Vision Try & Discover 2025”-In Pursuit of the Happiness of All Stakeholders -

Overview of the Group Long-Term Vision

Name
  • Group Long-Term Vision “Try & Discover 2025”
    -In Pursuit of the Happiness of All Stakeholders-
Plan period
  • April 2021 - March 2026(5 years)
Group Management Vision
  • Sow happiness, make change with boldness
The story of the Group’s growth
  • By setting the “Group KPI,” promoting the growth strategy that entails capital efficiency.
    (1) Creating leaner domestic life insurance business through ROE perspective (i.e. intensifying the specialization strategy)
    (2) Investing aggressively into new areas with high ROE and growth potential (i.e. searching for the growing sector)
    (3) A dramatic leap towards a new level of group management through pursuit of group synergy
    → Improving capital efficiency through increasing profit, leading to an improved valuation

Key Performance Indicators(Group KPI)

Financial KPI Adjusted profit *1
  • FY2025:130.0 billion yen
Adjusted ROE *2
  • FY2025:8.0%
Value of new business
  • FY2025:200.0 billion yen
ROEV *3
  • Stable and sustainable growth over 7.5% in the medium- to long-term
Non financial KPI Customer satisfaction
  • Minimum FY2020 level
Employee satisfaction
  • Minimum FY2020 level
CO₂ emissions
  • Reduction of 40% from FY2013 levels by FY2025

*1 Adjusted profit = Net income ± Valuation gains/losses caused by discrepancy of accounting treatment of assets and liabilities + Additional internal reserves in excess of the legal standard requirements.

*2 Adjusted ROE = Adjusted profit / Net asset (average of corresponding FY end and the previous FY end)

*3 ROEV = Increase and decrease in EV / EV (average of corresponding FY end and the previous FY end)

Group Growth Strategy Focus on 5 Primary Issues

I

Strengthening of core business

  • Three life insurance companies to aim for becoming the number one player among each of their specialized markets
II

Diversification and optimization of business portfolio

  • To further develop current investment areas such as closed book business, etc. and in parallel, to consider tapping new areas of business
III

Further advancement of ERM (Upgrading capital management)

  • Improve capital efficiency through new capital management measures and risk management measures
IV

Promoting integrated
group management

  • To pursue new synergies transcending the boundaries of businesses such as life insurance, non-life, and asset management
V

SDGs management and creation of value

  • To contribute to a sustainable society through “creation of shared value” which creates both economic and social value

Shareholder Return Policy

Shareholder Return
  • Cash dividend・・・ To pursue stable and sustainable increase, using adjusted DOE as a guide (to be gradually raised to approximately 4%*4).
  • Share buyback・・・To implement agile and strategic share buyback that takes into account the level of core ESR*5 and others.

*4 Total cash dividend / shareholder’s capital

*5 Surplus that is non applicable of UFR, exempt of subordinated debt / Economic value based risk amount