SOMPO Group’s Vision
Uncertainties about global economic conditions and global insurance market trends, continue to increase. The Company’s business environment may change dramatically because of the shrinking insurance market in Japan due to low birth rate and population aging, global increase in natural disasters due to climate change, more complex geopolitical risk, etc. and the business model may need to change due to digital progress, such as in mobility, wider use of generative AI, changes in consumer behavior, etc.
As such, SOMPO Group will rebuild customer base built over 130 years of history and lost trust of the customers in the domestic P&C insurance business, and implement strategies that leverage to the full extent the strengths developed during the past 10 years, such as expertise in international commercial insurance and leading position in both insurance and nursing care. SOMPO Group will evolve the Japan and international P&C insurance business in view of the changes in the business environment and the Group’s strengths, and launch the wellbeing business to address social challenges facing Japan by leveraging health promotion in the domestic life insurance business as well as the Group’s uniqueness of delivering both nursing care and various healthcare services to continue enhancing enterprise value.
<SOMPO Group’s Vision>
- It is of utmost importance to increase resilience of the P&C insurance business both in Japan and internationally to continue delivering financial protection and health to customers. The Group aims to complete consolidation of the domestic P&C and overseas insurance businesses in the best way, and achieve a state of being able to flexibly scale business depending on the market size and changes in customers and risks.
- In the wellbeing business, SOMPO Group aims to achieve a state where seamless services are delivered by developing a platform which connects Group businesses, including insurance and nursing care, and connects various solutions for social challenges related to health, nursing care, and retirement finances.
Mid-Term Management Plan (FY2024-2026)
The goals of the Mid-Term Management Plan (FY2024-2026) is to “increase resilience” and “connect with customers and deliver connected services” toward SOMPO Group’s Vision.
Mid-Term Management Plan overview
Growth strategy in each business segment
【Domestic P&C Insurance Business】
The domestic P&C insurance business will regain trust by fully implementing the business improvement plan, and focus on rebuilding the earnings structure and operating foundation. Sompo Japan will improve the framework primarily through “SJ-R”, a project that involves portfolio reform, claims service reform, sales reform, etc. while improving the quality of operations.
【Overseas Insurance Business】
The overseas insurance business aims to expand business geographically and into new segments through disciplined underwriting and talent acquisition, increase investment income, and stably grow profits. Also, SOMPO Group will continue searching for M&A candidates with discipline toward discontinuous growth.
【Wellbeing business】
SOMPO Group will increase Himawari fans by focusing on insurance and health services in the domestic life insurance business, improve quality and efficiency of operator business and make headway on developing the platform, including egaku, in the nursing care business. SOMPO Group will also increase life time value (LTV) of each customer by delivering various solutions to extend healthy life expectancy.
Group strategies
- HR strategy
Since it is crucial to secure quality and quantity of talent portfolio necessary for implementing the strategies of each business, the Company will encourage proactive career development and aims to become a group of professionals who are growth-oriented. For this, the Company will strengthen talent base through HR measures, human capital investment, and corporate culture change so that the company and employees can grow together.
- Finance strategy
The Company will promote circulation of capital by allocating capital to highly capital efficient areas and withdrawing from low efficiency areas, delivering attractive shareholder return, revising the ESR target range, increasing remittance (aggregation of capital to the holding company), etc. to financially support implementation of individual business strategies and achievement of management targets.
- Data & digital strategy
The Company will build a data and digital framework that is highly adaptable to changes in the business environment and enables agile decision-making through efficient and flexible use of group resources to improve the quality and productivity at each Group company through digitalization and shift to data-driven operations and organization.
Governance
The Company will improve the framework to ensure separation of management oversight and business execution as well as transparent decision-making process by reinforcing the autonomous PDCA cycle at business companies and strengthening subsidiary management by the holding company, while placing the highest priority on increasing the effectiveness of governance to fully implement the business improvement plan and regain the trust in SOMPO Group.
Group Management Targets
Sompo Holdings uses adjusted consolidated ROE and adjusted EPS growth as management targets to measure the Group’s growth. The Company aims to achieve adjusted consolidated ROE of 13-15%* and adjusted EPS growth of above +12%* in FY2026.
- Based on the definition (tentative) after adopting International Financial Reporting Standards (IFRS)
For details regarding ROE,please refer to the link below.
Definition of Adjusted Consolidated Profit, Etc.（PDF/356KB）
