Throughout the whole period of the medium-term management plan “Next Challenge 2017”, we have strived to promote the major priorities such as “reorganization by function,” “strengthening of Group governance,” “promotion of ERM,” and “transformation of the business structure.” Although in fiscal year 2017, the final year of this plan, our earnings have been negatively affected by large natural catastrophes such as hurricanes in North America, we have realized even greater growth and efficiency as a result of our efforts to accomplish these initiatives. To propel further growth, we have set out new medium-term management plan “Vision 2021” from fiscal year 2018 to 2021.


In the new medium-term management plan “Vision 2021”, we have defined a “resilient and sustainable society” as what we aim to realize by 2030 and clarified numerical targets we pursue as well as important initiatives to enhance corporate value and to structure a framework to support sustainable growth leveraging the Group's strengths. To become a world-leading insurance and financial services group which has been our aspiration in mid-term range since MS&AD Insurance Group was established, we will create resilient systems that can respond rapidly to changes in the evolving environment.


First of all, we will incorporate SDGs (Sustainable Development Goals) which were adopted by the United Nations, into our business activities. As a group, we continue to make efforts to solve social issues through the MS&AD business model. On the other hand, each one of employees realizes individual role to support the MS&AD's value creation and demonstrates what should be implemented for sustainable society.


Next, in terms of the Group's management framework, we aim to improve profitability and capital efficiency through the further promotion of management based on the ERM (Enterprise Risk Management.)


Furthermore, promoting digitalization is an important strategy that will support the growth of the Group. By using advanced digital technologies such as IoT, FinTech and AI, we aim to improve our productivity and enhance customer experience. To that end, we will gear up to open innovation such as industry-academia collaborations or joint development with start-up companies, which will lead to reform of the Group's entire business.


Moreover, we will strive to improve productivity and quality to meet the expectations of our customers and other stakeholders as we demonstrate the Group's comprehensive strengths by leveraging diversity, which is our greatest advantage, and responding flexibly to changes in the environment. MS&AD boasts the largest domestic non-life insurance business in Japan and we will maintain a solid revenue base by expanding into casualty insurance in addition to fire insurance and other lines. Meanwhile, in the domestic life insurance business, we aim to expand products and services that precisely capture advances in medical care and changes in the social structure and respond to detailed customer needs. In addition, international business is our growth driver, and here we aim to further enhance our global presence by combining the know-how and technologies possessed by Group companies and making use of them in the development and provision of new products.


Lastly, we continue to concentrate the comprehensive strengths of the Group while allowing every single employee to play an active role and leveraging the Group's strength in the form of diversity. For better engagement with stakeholders, we will execute corporate activities centered on creating shared value (CSV).


We look forward to your continued strong support and encouragement.


Yasuyoshi Karasawa
President & CEO