Tokio Marine Holdings has announced its financial results for the second quarter of the 2025 fiscal year, reporting a 6.4% decrease in its international business profits, which reached JPY235.4 billion.
While international non-life profit saw a dip of 11.1% to JPY232.4 billion, the overall progress rate remains generally in line with full-year projections, the firm noted.
This resilience is attributed to strong underwriting performance from key subsidiaries, including PHLY, DFG, and TMSR.
Favourable capital losses in North America, which were less-than-expected capital loss in the region (contributing approximately +JPY18.0 billion), also helped offset the negative impacts.
PHLY generally met its original projections, showcasing robust underwriting performance, excluding natural catastrophes, despite the impact of LA wildfires. DFG significantly exceeded the plan due to a favourable combined ratio for P&C and Life, and lower-than-plan capital losses mainly for CRE loans.
TMHCC progress was mostly on track after adjusting for the LA wildfire and FX impacts (approx. -JPY10.0 billion).
Europe exceeded the plan due to continued favourable loss, despite the FX effect between foreign currencies (approx. -JPY6.0 billion). South & Central America surpassed the plan due to a favourable loss ratio, which included below-plan nat cats losses.
Asia & Oceania performance was mostly in line with the plan due to favourable loss ratios in Thailand and Malaysia, which was offset by deteriorating loss ratio in India. Pure exceeded the plan as a result of increased fee income from top line growth.
Net premiums written across international business totalled JPY1,635.0 billion, a 4.2% decrease. Strong underwriting from PHLY, DFG, and TMSR (Brazil), despite some lines experiencing softening, contributed to the result.
Total non-life premiums written fell by 4.8% to JPY1,569.0 billion. Life net premiums written saw a significant jump of 13% to JPY65.9billion.
North American subsidiaries – PHLY, DFG, and TMHCC – were the largest contributors to the total premiums written, accounting for JPY1,112.1 billion.
Europe contributed JPY121.9 billion, South & Central America contributed JPY167.4 billion, Asia & Oceania contributed JPY143.5 billion, and the Middle East & Africa contributed JPY23.8million
According to TMH, PHLY outperformed original projections thanks to strong rate increases (+9.7%) and new businesses. DFG also outperformed the plan due to strong underwriting for Excess WC, disability, and group life insurance, etc.
TMHCC was below the plan due to continued softening in some lines of business while strictly prioritising bottom line; core MSL business remains robust, with a rate change of -1.3% (excl. A&H, Surety, and Credit). However, previous rate increases have ensured an adequate rate level.
Despite softening and a Q2 rate decrease of -2.6%, Europe was mostly in line with the plan, with disciplined underwriting expansion. South & Central America outperformed the plan due to robust underwriting for corporate customers, etc., despite the mainstay auto insurance being affected by the price competition.
Asia & Oceania was slightly below the plan, primarily due to underperformance in auto insurance in India and travel insurance in Australia.
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