Financial and Pre-Financial Highlights

Adjusted Consolidated Profit / Adjusted Consolidated ROE

Increased profit and high capital efficiency
Adjusted consolidated profit in fiscal 2020 totaled ¥202.1 billion, and adjusted consolidated ROE reached a record-high 8.0%. We made steady progress toward achieving our fiscal 2023 targets of ¥300 billion and 10% or higher, respectively.

Risk Diversification Ratio / Overseas Business Ratio

Increased earnings stability and resilience
Seeking to improve earnings stability and build a resilient business portfolio, we have set risk diversification ratio and overseas business ratio as KPIs under our new Mid-Term Management Plan. By fiscal 2023, the final year of the plan, we aim to raise the risk diversification ratio (from 39.4% in fiscal 2020) and achieve an overseas business ratio of 30% or higher.

  1. Risk diversification effect/Total amount of Group risk (Before consideration of diversification effect)
  2. Adjusted profit of Overseas Insurance and Reinsurance Business/ Adjusted consolidated profit

Shareholder Returns

Attractive shareholder returns achieved
Total shareholder returns (dividends paid + share buybacks) steadily increased in line with growth in adjusted consolidated profit. We will continue aiming to realize attractive shareholder returns. We expect to pay year-on-year increases in dividends for the eighth consecutive periods (including our forecast for fiscal 2021). Our policy under the new Mid-Term Management Plan is to continue increasing dividends and raising the ratio of dividends to shareholder returns.

Total Shareholder Return (TSR)

Note: Indexed to 100 from March 31, 2011
Source: Bloomberg

Enhanced shareholder value driven by SOMPO’s Purpose
Total shareholder returns* over the past 10 years have outperformed other companies in our industry. We will continue targeting steady growth in shareholder value through initiatives aimed at realizing SOMPO’s Purpose.
* Total Shareholder Return is the rate of return after reinvestment of dividends.

Net Premiums Written

Protect people from future risks facing the society

Materiality: Provide preparedness for all types of risk

Net premiums written in fiscal 2020 totaled ¥2,923.5 billion, up ¥98.0 billion year on year. This was due to a significant increase in revenue from Sompo International, which handles our overseas insurance and reinsurance business. Going forward, we will continue protecting people from future risks facing the society by enhancing preparedness for all types of risks through insurance services, which form the core of the Group’s business.

Create a future society for healthy and happy lives

Materiality: Provide solutions for healthy and happy lives Contribute to a sustainable aging society

To help create a future society full of health and happiness, the Group provides a wide range of offerings, from insurance products that support good health to healthcare and nursing care services. The diversity of our businesses is one of our strengths. Leveraging this strength, we will foster a sustainable aging society by providing solutions that support the health and happiness of people at all life stages.

Ratio of officers and employees by business

Foster the ability to change the future society with diverse talents and connections

Materiality: A group of talent who can change future society

Committed to creating “A Theme Park for Security, Health & Wellbeing,” the Sompo Group, which operates various businesses, leverages its diverse human resources, a strength that is unmatched by other companies. We welcome the “good clashes” (clashes of knowledge) that occur when diverse human resources come together and are committed to creating innovations that generate new value.

Greenhouse Gas Emissions (Scope 1–3)*

Advancing “SOMPO Climate Action” initiatives

Materiality: Contribute to a greener society where the economy, society and environment are in harmony

As part of “SDGs in Business Management,” positioned as a Group Management Foundation, we have launched “SOMPO Climate Action” to expedite our efforts to tackle climate change. To mitigate climate change, in fiscal 2021 we set a new greenhouse gas reduction target of becoming “carbon neutral in 2050.” To this end, we are helping create a greener society where the economy, society, and environment are in harmony, for example by switching electricity used in the Group’s main buildings to renewable energy.
* Total of Scope 1 (direct emissions from use of gasoline, etc.), Scope 2 (indirect emissions from energy sources, such as electricity), and Scope 3 (indirect emissions from entire value chain, including transportation and business travel). The scope of calculation covers the Company and its major consolidated subsidiaries. Note that emissions for FY2017–2019 have been recalculated based on fiscal 2020 calculation methodologies.
[Third-party verification] To ensure the reliability of reported figures, Sompo Holdings has received a third-party verification from Lloyd’s Register Quality Assurance Limited (LRQA) for its calculation of greenhouse gas emissions (Scope 1–3) in fiscal 2020.

Consolidated Financial Indicators for Sompo Holdings


FY2018 FY2019 FY2020
Key Figures (Millions of yen)
 Ordinary Income
 Net Premiums Written(P&C Insurance)
 Life Insurance Premiums
 Ordinary Profit
 Net Income Attributable to Shareholders of the  Parent
 Comprehensive Income
 
3,643,040
2,718,155
349,606
198,959
146,626
(54,460)
 
3,760,366
2,825,482
356,064
192,451
122,515
(77,806)
 
3,846,323
2,923,547
346,177
215,097
142,482
512,417
Per Share Information (Yen, U.S. dollars)
 Net Income
 Dividends
 (Of which, Interim)
 Diluted Net Income
 
392.26
130.0
65.0
391.96
 
334.12
150.0
75.0
333.89
 
397.40
170.00
80.00
397.16
Financial Condition (Millions of yen)
 Total Net Assets
 Total Assets
 Equity Ratio (%)
 Consolidated Solvency Margin Ratio (%)
 
1,779,911
12,018,254
14.6
859.8
 
1,612,584
11,977,836
13.3
856.1
 
2,031,168
13,118,656
15.4
871.8
Stock Information (Shares)
 Number of Shares Outstanding (Excluding  Treasury Stock)
 
372,426,159
 
364,125,082
 
354,956,543
Adjusted Financial Indicators
 Adjusted Consolidated Profit (Billions of yen)
 Adjusted Consolidated ROE (%)
 
113.5
4.5
 
150.8
6.4
 
202.1
8.0

Adjusted Financial Indicators
Adjusted consolidated profit is a profit indicator that is meant to more accurately reflect business results and is calculated by adjusting consolidated net income based on JGAAP for catastrophic loss reserve and other items.
This indicator is used to determine shareholder returns.

Definition of Adjusted Consolidated Profit, Adjusted Consolidated ROE, etc.

Previous Mid-Term Management Plan New Mid-Term Management Plan
Adjusted profit for each business*1
Domestic P&C insurance*2 Net income
+ Provisions for catastrophic loss reserve, etc. (after tax)
+ Provisions for reserve for price fluctuation (after tax)
– Gains/losses on sales of securities and impairment losses on securities (after tax)
Net income
+ Provisions for catastrophic loss reserve, etc. (after tax)
+ Provisions for reserve for price fluctuation (after tax)
– Gains/losses on sales of securities and impairment losses on securities (after tax)
Overseas insurance and reinsurance business Net income (including major non-consolidated subsidiaries)
Operating income is used for Sompo International Holdings.*5

Operating Income*5
Net income is used for affiliates accounted for under the equity-method in principle.

Domestic life insurance Net income
+ Provision of contingency reserve (after tax)
+ Provision of reserve for price fluctuation (after tax)
+ Adjustment of underwriting reserve (after tax)
+ Deferral of acquisition cost (after tax)
– Depreciation of acquisition cost (after tax)
Net income
+ Provision of contingency reserve (after tax)
+ Provision of reserve for price fluctuation (after tax)
+ Adjustment of underwriting reserve (after tax)
+ Deferral of acquisition cost (after tax)
– Depreciation of acquisition cost (after tax)
– Gains/losses on sales of securities and impairment losses on securities (after tax)
Nursing care & seniors Net income Net income
Digital*3 Net income
– Gains/losses on sales and impairment losses related to investment (after tax)
Healthcare, etc.*4 Net income
Adjusted consolidated profit Total of above adjusted profits Total of above adjusted profits
Adjusted consolidated net assets Consolidated net assets (excluding life insurance subsidiary’s net assets)
+ Catastrophic loss reserve in domestic P&C insurance, etc. (after tax)
+ Reserve for price fluctuation in domestic life insurance (after tax)
+ Domestic life insurance adjusted net assets*6
Consolidated net assets (excluding life insurance subsidiary’s net assets)
+ Catastrophic loss reserve in domestic P&C insurance, etc. (after tax)
+ Reserve for price fluctuation in domestic life insurance (after tax)
+ Domestic life insurance adjusted net assets*6
Adjusted consolidated ROE Adjusted consolidated profit/Adjusted consolidated net assets
Note: The denominator is the average balance at the end/start of each fiscal year.
Adjusted consolidated profit/Adjusted consolidated net assets
Note: The denominator is the average balance at the end/start of each fiscal year.
Risk diversification ratio Risk diversification effect/Total amount of Group risk
(Before consideration of diversification effect)
Global business ratio
(Regional diversification ratio)
Adjusted profit of Overseas Insurance and Reinsurance Business/Adjusted consolidated profit
  1. Adjusted profit by business segment excludes one-time gains and losses or special factors such as dividend from subsidiaries.
  2. Total of Sompo Japan Insurance Inc., SAISON AUTOMOBILE AND FIRE INSURANCE COMPANY, LIMITED, Sompo Japan Partners Inc., Mysurance Inc., Sompo Japan DC Securities Inc., Sompo Risk Management Inc., Tier IV, Inc., DeNA SOMPO Mobility Co., Ltd., akippa Inc., DeNA SOMPO Carlife Co., Ltd., Prime Assistance Inc. and Sompo Warranty Inc.
  3. Total of Palantir Technologies Japan K.K., Sompo AUX Inc. and ABEJA, Inc. (FY2021 and later) (FY2020 and earlier, all three classified as Nursing Care & Healthcare Business, etc.)
  4. Total of Sompo Health Support Inc., Wellness Communications Corporation, Sompo Asset Management Co., Ltd. and FRESHHOUSE Co., Ltd. (FY2020 and earlier, all four classified as Nursing Care & Healthcare Business, etc.)
  5. Defined as the operating income, which excludes one-time fluctuation factors (= Net income − Net foreign exchange gains and losses − Net realized and unrealized gains and losses on securities − Net impairment losses recognized in earnings, etc.)
  6. Adjusted net assets of Domestic Life Insurance Business = Net assets of Domestic Life Insurance Business (J-GAAP) + Contingency reserve (after tax) + Reserve for price fluctuation (after tax) + Adjustment of underwriting reserve (after tax) + Non-depreciated acquisition cost (after tax)
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