The Mid-Term Management Plan toward realizing a “theme park for the security, health, and wellbeing of customers.”
The central focus of our current Mid-Term Management Plan, which commenced in fiscal 2016, is to transform into a group capable of sustaining growth into the future with an eye on the domestic market after the Tokyo 2020 Olympic and Paralympic Games amid rapid changes in the external environment. Our vision is to evolve into a “theme park for the security, health, and wellbeing of customers.” More specifically, we aim to thoroughly enhance the appeal of each business while leveraging digital technologies, seeking out new business opportunities, and effecting changes through collaboration between Group businesses and by building ecosystems with external partners. Our ultimate aim is to create new business models that are a clean break from the past.
As a holding company, Sompo Holdings will support the transformation of each business while guiding on digital and human resource strategies for the entire Group in the pursuit of realizing a “theme park for the security, health, and wellbeing of customers.” Moreover, Sompo is working to reform its business portfolio as a part of the transformation of the entire Group. Cash flows generated from steady growth in each business and excess capital freed up from the winding down of cross-shareholdings will be allocated to M&As in growth fields and investments in fields likely to show innovation, such as digital and cutting-edge technologies. As a result, Sompo aims to expand profits and improve capital efficiency further.
Through growth in both innovativeness (quality) and scale (quantity), Sompo intends to achieve as quickly as possible its numerical management targets for adjusted consolidated profit of over ¥300.0 billion and adjusted consolidated ROE of over 10.0%. Management will continue to execute Group strategies with the aim of becoming a unique and innovative group, unlike any other in the world, in promoting the security, health, and wellbeing of its customers.
Transformation into “Theme Park for the Security, Health, and Wellbeing of Customers” in each business
Sompo Holdings has been steadily transforming the entire Group and each business toward its vision of becoming “A Theme Park for Security, Health & Wellbeing.” During the first half of its Mid-Term Management Plan (fiscal 2016–fiscal 2018), the Company accelerated the development of new businesses as well as products and services that go beyond the framework of existing businesses.
During the second half of the Mid-Term Management Plan (fiscal 2019–fiscal 2020), the Company will continue to transform its business portfolio and diversify its business domains and sources of revenue.
Domestic P&C insurance business
Stabilizing profit growth by raising efficiency, creating new sources of revenue
- Making up-front investments in AI, RPA, and IT systems, increasing efficiency by optimizing sales networks
- Optimizing product pricing strategy, reforming earnings structure by cutting business costs
- Utilizing partnerships and digital technology to create points of contact with new customers, creating new sources of revenue
Overseas insurance business
Driving profit growth for the Group
- Accelerating organic growth in global platforms for corporate and retail fields
- Expanding business base via bolt-on M&A that complements existing operations
- Continuing disciplined underwriting with focus on risks and returns
Domestic life insurance business
Steadily expanding profits by transforming into health support enterprise
- Expanding profits by gradually increasing number of policies in force
- Developing Insurhealth® as insurance combined with services to help customers maintain and improve their health
- Rapidly improving productivity with AI and RPA
Nursing care & healthcare business
Improving productivity while solving social issues
- Improving profitability by using cutting-edge technologies
- Creating new sources of revenue in dementia-related services and senior citizen market
【Plan for the Group】
- In the future, we aim to execute the Medium-Term Management Plan to attain a business scale (adjusted consolidated profit of 300.0 billion yen or more) and capital efficiency (adjusted consolidated ROE of 10.0% or more) on par with the top 10 global publicly listed insurance companies.
- Adjusted profit and ROE in FY2018 is 113.5 billion yen and 4.5% because the natural disasters exceeding our assumptions on measures to control cat risks.
On the other hand, we achieved record-high adjusted profit and ROE with normalized impact of natural disasters.
- We aim to achieve FY2020 targets by offsetting the impacts of the external environment changes with various initiatives contributing to higher profitability.
- In November 2019, the Group revised ｂusiness ｆorecasts for FY2019 to adjusted consolidated profit of 128.0 billion yen and adjusted consolidated ROE of 5.3%.
- Revised adjusted consolidated profit and adjusted consolidated ROE, assuming an incurred loss on domestic natural disasters of \48.0 billion (equivalent to the historical average and estimated amount in initial forecasts for FY2018)
- For details regarding ROE,please refer to the link below.
Definition of Adjusted Consolidated Profit, Etc.（PDF/246KB）