Forecasts & Results

Tokio Marine reports full year results to March 2022

Posted 23/05/2022 – Quick takes

Tokio Marine, the international insurance conglomerate, has announced its results for the year to 31st March 2022, with group profits more than doubling to JPY420.4bn (cUS$3.3bn) in the period.

Tokio Marine Holdings’ international division has reported a profit of JPY250.4bn (cUS$1.96bn) for FYmar22, an increase of 157% year-on-year due to a JPY94.7bn (cUS$741m) reduction of the impact of COVID-19.

Tokio Marine HCC (TMHCC) saw profits increase by JPY59.9bn (cUS$469m), a c136.6% increase year-on-year, due to strong top-line growth and improved underwriting profitability (TMHCC’s combined ratio was 87.9%).

Tokio Marine Europe produced a profit of JPY13.6bn (cUS$106m) vs. a JPY(12.4)bn (cUS$(97)m) loss in the previous financial year. Tokio Marine’s statement made particular mention of a “successful turnaround” of Tokio Marine Kiln (TMK), the company’s Lloyd’s platform, with TMK’s combined ratio improved to sub-90% as the result of both rate increases and portfolio optimisation by the new management team.

For the year to 31st March 2023, Tokio Marine is expecting TMK to increase gross written premium “due to the expansion of new channels in addition to rate increases in the areas where TMK has strengths such as liability insurance.”

Alpha comment

Although there is not much detail on the Lloyd’s syndicates in these group results, the comments about both improved profitability and future growth bode well and justify the faith that Alpha placed in the Kiln management to increase the profitability of syndicate 510 and improve the standard of underwriting.

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