Materials for FY2018 Results Briefing Conference Call May 20, 2019 - PDF document

Materials for FY2018 Results Briefing – Conference Call May 20, 2019 (Mon.) 1 Main Points FY2018 Results ・Although the losses caused by major natural catastrophes, such as Typhoon Jebi (No. 21), reached the largest level ever, a large portion was covered by reinsurance and the reversal of the catastrophe reserve. Although net income was 7.2 billion yen lower than expected due to the impact of the California wildfire that occurred after the earnings forecast announcement in November 2018, net income increased by 38.6 billion yen year on year. ・Additional provision (MSI: 25.0 billion yen, ADI 15.0 billion yen) was made to secure a certain balance of the catastrophe reserve. FY2019 Forecast ・Earnings from the international business are expected to be lower than initially planned due to conservative planning. However, domestic non-life insurance and domestic life insurance businesses are performing well, exceeding the plan. Net income is expected to increase by 7.2 billion yen year-on-year to 200.0 billion yen. Shareholder Return ・Annual dividend for FY2018 (plan): 140 yen (up by 10 yen from the previous fiscal year) ・Purchase of own shares (plan): up to 32.0 billion yen ・Annual dividend for FY2019 (forecast): 150 yen (up by 10 yen from the previous fiscal year) 2

Contents Summary of FY2018 Results Consolidated Earnings Page 5-13 Domestic Non-Life Insurance Companies Page 14-16 Domestic Life Insurance Companies Page 17-18 Overseas Subsidiaries Page 19 (Reference) Domestic Non-Life Insurance Companies, MSI & ADI Page 20-22 (Reference) MS Amlin's Results for FY2018 (Jan.-Dec. 2018) Page 23 (Reference) ESR Page 24 Projected Results for FY2019 Consolidated Earnings Forecasts Page 26-29 Major Assumptions for Earnings Forecasts Page 30 Domestic Non-Life Insurance Companies Page 31-32 Domestic Life Insurance Companies Page 33-34 Overseas Subsidiaries Page 35 (Reference) Domestic Non-Life Insurance Companies, MSI & ADI Page 36-37 (Reference) MS Amlin: Measures for Profit Recovery Page 38-39 Please also refer to an Excel data file uploaded on our website. 3 Summary of FY2018 Results 4

Consolidated Earnings for FY2018 (1) - Overview (i) (Top line) （¥bn） Non-life insurance subsidiaries FY2017 FY2018 Results Results YoY Change Growth Direct premiums written ※ 3,568.7 3,684.4 115.7 3.2% (excl. deposit premiums from policyholders) Net premiums written ※ 3,446.9 3,500.4 53.4 1.6% Mitsui Sumitomo Insurance 1,500.3 1,512.4 12.1 0.8% Aioi Nissay Dowa insurance 1,222.0 1,233.5 11.5 0.9% Mitsui Direct General 37.8 36.6 - 1.2 - 3.2% Overseas subsidiaries 682.3 714.6 32.2 4.7% ※ Direct premiums written and net premiums written exclude Good Result Return Premiums of the “ModoRich” auto insurance product, which contains a special clause related to premium adjustment and refund at maturity, same hereafter. (\bn) Life insurance subsidiaries FY2017 FY2018 （億円） Results Results YoY Change Growth Gross premiums income ※ 1,508.1 1,599.9 91.7 6.1% MSI Aioi Life 492.5 504.2 11.6 2.4% MSI Primary Life 1,015.6 1,095.6 80.0 7.9% Life insurance premiums 1,058.2 1,286.8 228.5 21.6% ※ Gross premiums income is for domestic life insurance subsidiaries only . 5 Consolidated Earnings for FY2018 (1) - Overview (i) (Top line) (Non-life insurance subsidiaries: domestic and overseas) ・ Net premiums written increased at both domestic and overseas non-life subsidiaries, with a total increase by 53.4 billion yen or 1.6%. ・ Direct premiums written increased by 74.0 billion yen or 2.6% and net premiums written increased by 23.6 billion yen or 0.9% for the two domestic non-life insurance companies combined. Higher sales of fire and casualty insurance contributed to the increase, although there was a drop in compulsory auto liability insurance, and additional costs of reinsurance premiums for natural catastrophes reached 24.5 billion yen. ・ Net premiums written at overseas subsidiaries increased by 32.2 billion yen due to the increase at MS Amlin and MS First Capital being newly included in the scope of consolidation (19.2 billion yen). (Life insurance subsidiaries: domestic) ・ MSI Aioi Life: Please see Slide 17 ・ MSI Primary Life: Please see Slide 18 6

Consolidated Earnings for FY2018 (1) - Overview (ii) (Bottom line) (¥bn) FY2017 FY2018 Results Results YoY Change Change Ratio Ordinary profit/loss 211.5 290.8 79.2 37.5% 262.5 226.4 - 36.0 - 13.7% Mitsui Sumitomo Insurance 5.6 61.3 55.7 992.9% Aioi Nissay Dowa Insurance Mitsui Direct General Insurance 0.4 0.3 - 0.0 - 14.8% 16.9 19.5 2.5 15.0% MSI Aioi Life MSI Primary Life 28.9 35.5 6.6 23.0% - 104.3 22.6 127.0 - Overseas subsidiaries 1.3 - 75.1 - 76.5 - 5,574.7% Consolidation adjustments, others Net income/loss ※ 154.0 192.7 38.6 25.1% 198.2 171.1 - 27.1 - 13.7% Mitsui Sumitomo Insurance Aioi Nissay Dowa Insurance 15.6 37.3 21.6 138.8% 0.2 0.2 - 0.0 - 23.9% Mitsui Direct General Insurance MSI Aioi Life 5.2 7.9 2.6 51.0% 29.2 23.3 - 5.9 - 20.2% MSI Primary Life - 104.6 19.3 124.0 - Overseas subsidiaries Consolidation adjustments, others 10.0 - 66.5 - 76.6 - 760.0% ※ Consolidated net income represents net income attributable to owners of the parent. Net income of subsidiaries is on an equity stake basis, same hereafter. 7 Consolidated Earnings for FY2018 (1) - Overview (ii) (Bottom line) (Group consolidated) ・ Net income increased by 38.6 billion yen mainly as a result of recovery at overseas subsidiaries (from a loss of 104.6 billion yen to a profit of 19.3 billion yen). (Domestic non-life subsidiaries) ・ At MSI, net income decreased by 27.1 billion yen. Underwriting profit decreased by 37.1 billion yen as a result of an increase in domestic natural catastrophe losses. ・ At ADI, net income increased by 21.6 billion yen. Underwriting profit increased by 10.7 billion yen as overseas natural catastrophe losses were lower than in the previous year. ・ The E/I loss ratio (excl. natural catastrophes) was 58.8% (down 0.1 pp year-on-year) for voluntary automobile and 56.7% for all lines (excl. residential EQ insurance and CALI), 0.9 pp below the 57.6% forecast announced in November 2018. (See Slide 21) (Domestic life insurance subsidiaries) ・ Net income at MSI Aioi Life increased by 2.6 billion yen year-on-year mainly due to an increase in policies in force and a decrease in the burden of policy reserves following the product revision. ・ Net income at MSI Primary Life decreased by 5.9 billion yen year-on-year mainly due to an increase in the burden of commissions following increased sales and an increase in the burden of policy reserves for the first-year policies, although the profit margin increased. (Overseas subsidiaries) ・ Net income increased by 124.0 billion yen mainly due to an increase in Asia and MS Amlin’s recovery as a result of decreased natural catastrophe losses among other factors. 8

Consolidated Earnings for FY2018 (2) – YoY Results Comparison (i) Net income increased by 38.6 billion yen year-on-year as natural catastrophe losses decreased at (8) overseas subsidiaries. • Although (2) incurred losses at the two domestic non-life insurance companies increased by 170.8 billion yen mainly due to the 137.7 • billion yen increase in incurred losses associated with domestic natural catastrophes, the net income decreased by only 5.4 billion yen, resulting from the increase in the reversal of (3) catastrophe reserve (+124.4 billion yen) and the increase in (4) investment profit (+46.1 billion yen). Consolidated net income （¥bn） 9 Consolidated Earnings for FY2018 (2) – YoY Results Comparison (ii) Factors in YoY changes in consolidated net income （¥bn） FY2017 FY2018 Difference Results Results Consolidated net income/loss 154.0 192.7 38.6 Domestic non-life insurance ※1 : Underwriting profit/loss (excl. 89.3 62.8 - 26.4 residential earthquake and CALI (compulsory auto liability insurance)) Earned premiums and others ※2 (1) 1,553.2 1,573.2 19.9 Incurred losses (incl. loss (2) - 1,419.3 - 1,590.1 - 170.8 adjustment expenses) Provision/reversal of catastrophe (3) - 44.6 79.8 124.4 reserve (4) 178.8 224.9 46.1 Investment profit/loss and others (5) - 54.3 - 79.4 - 25.1 Others (extraordinary loss, taxes, etc.) Domestic non-life insurance: Total (6) 213.8 208.4 - 5.4 Domestic life insurance subsidiaries (7) 34.4 31.2 - 3.2 Overseas subsidiaries (8) - 104.6 19.3 124.0 Consolidation adjustments and others (9) 10.3 - 66.3 - 76.7 ※ 1 Figures for domestic non-life insurance are the simple sum of MSI and ADI. ※ 2 “ Earned premiums and others“ include expenses. 10