Transformation through Qualitative Evolution and Mid-Term Management Plan

Basic Strategy

Maximize synergies from business integration

Strategies and Outcomes

• Increase business efficiency by integrating management of two core companies in domestic P&C insurance business
• Provide high-quality products and services by sharing and refining know-how
• Strengthen asset management capabilities
• Facilitate the early and smooth integration of two companies in domestic life insurance business
• Boost earnings by developing local markets and pursuing M&A and tie-ups in overseas underwriting business
• Establish assistance business and expand earnings sources through Group-wide sharing of financial services, etc.

Issues

• Increase profitability and build a highly integrated model by merging two companies in domestic P&C insurance business
• Monetize and share business foundation, including Group businesses

Basic Strategy

Proactively shift management resources to growth fields while improving profitability of existing businesses

Strategies and Outcomes

• Creation of Sompo Japan Nipponkoa Insurance (now Sompo Japan Insurance) through merger of two core companies in domestic P&C insurance business
• Realization of higher business efficiency through early unification
• Earnings improvement on changes to rating system for automobile insurance
• Expansion of customer base by utilizing direct channels
• Higher weighting and greater scale in protection-type products in domestic life insurance business
• Execution of balanced M&A in specialty fields in Europe and the U.S. and retail fields, centered on automobile insurance in emerging markets, in overseas insurance business
• Full-scale entry into services business, including nursing care business and remodeling business acquisitions
• Begin advance into truly service-oriented industry by providing various progressive services

Issues

• Stopping at bolstering profitability in domestic insurance businesses, pursuit of scale and efficiency on a par with global players, and transforming structure to align with service-oriented industry

Basic Strategy

Build a business foundation for realizing
"A Theme Park for Security, Health & Wellbeing"

Strategies and Outcomes

[ Establish and Sharpen Advantages in Each Business ]

• In the domestic P&C insurance business, reform the earnings structure by reviewing pricing strategy, etc., enhance preparations for natural catastrophe risks, and manage risk by unwinding cross-shareholdings
• In the overseas insurance business, make steady progress on post-merger integration with major acquisition Endurance (now Sompo International), launch retail platform concept, etc.
• In the domestic life insurance business, begin transformation into health support company centered on Insurhealth®
• In the nursing care & healthcare business, quickly turn profitably by improving productivity and merging / integrating Group companies

[ Group-Wide Strategy ]

• Advance digital strategy, build a global trilateral structure, and enter the cybersecurity business (Sompo Risk Management)
• Introduction of Business Owner system and Group Chief Officer (CxO) system, build a Group governance platform for transition to Company with Committees structure

Issues

• Earnings remained weak due to external factors, such as major natural catastrophes, despite steady growth at the outset of the plan. Issues include profit contributions and monetization with built-up business foundation.

Basic Strategy

Implement measures to realize
“A Theme Park for Security, Health & Wellbeing”

Strategies

[ Establish and Sharpen Advantages in Each Business ]

• In the domestic P&C insurance business, reform earnings structure by optimizing pricing strategy and thoroughly reviewing business expenses, create new points of contact with customers, and establish new sources of earnings
• In the overseas insurance business, accelerate growth using global platforms and expand business foundation through bolt-on M&A
• In the domestic life insurance business, expand Insurhealth®, a combination of insurance and services to help maintain and improve health
• In the nursing care & healthcare business, increase productivity, turn a profit in peripheral businesses, and build a Sompo brand strong in dementia healthcare

[ Group-Wide Strategy ]

• Advance digital technology in existing businesses and proceed with data-driven business strategy
• Change the business portfolio, diversify business domains, and secure stable earnings sources
• Promote the globalization of management, mission-based work styles, and productivity by reforming the corporate culture

Issues

• Identify future issues and trends caused by changes in society and people's behavior during and after COVID-19

These reforms align with the Sompo Group’s aim of becoming "A Theme Park for Security, Health & Wellbeing," and we will continue to pursue Group reforms.