Capital Policy
We will achieve sustainable growth, even in uncertain business environments, by investing to strengthen, expand and create businesses.
Internal reserves after shareholder returns are used for investments that aim to improve the competitiveness of existing businesses, for investments to diversify and expand the business portfolio, and for investments to create new business territories in cooperation with partners, with the ultimate aim of sustaining growth and increasing shareholder value.
For business investments, acquisition candidates are screened for their affinity with our corporate culture and for operations that can generate synergies with existing businesses while dispersing risk, in order to contribute to sustained improvement in the Groupʼs capital efficiency.
Through these investments, we aim to accelerate improvements in capital efficiency and secure competitiveness in the future, even in uncertain business
Sustainable Profit Growth
- 拡大
- AI support for agents
"MS1 Brain"
Enhance the Competitiveness of Existing Businesses
●Invest in systems and promote digitalization (DX: digitaltransformation), etc.
●Implement ROI-based investment
Specific Initiatives
● Upgrade business processes using digital tools (chatbots, RPA)
● Enhance claims service efficiency using telematics technology
● Enhance the competitiveness of agencies (MS1 Brain)
- 拡大
- CVC
Create New Business
●Implement investment via CVC to seek out game-changing technologies and business models over the next 3‒5 years
●Implement initial investment premised on cash flow equilibrium
●Undertake ROI-based investment in the same manner as enhancement-oriented spending during the actual technology mounting phase
Specific Initiatives
● Venture investment based on Silicon Valley CVC (33 companies as of March 31, 2020)
● Collaboration with companies pursuing innovation in Israel
● Alliances with digital platformers (Finatext)
- 拡大
- M＆A
Business Portfolio Diversification and Expansion
●Invest in new businesses to diversify our geographic and
business portfolios, etc.
<Points of Consideration for Investment>
・Shared values
・Risk dispersion (geographic, line of business)
・Sustainable growth model
・ROI target: level above the cost of capital (7%)
Specific Initiatives
● Raise our stake in PT. Asuransi Jiwa Sinarmas MSIG Tbk (Indonesia)
● Finance Myanmar private-sector non-life major IKBZ Insurance
Shareholder Return Policy
-
For FY2019, the annual dividend is planned to rise by \10 to \150. In addition, share buybacks of up to \15 billion are planned.
-
For FY2020, the annual dividend is forecast not to change \150 in order to provide stable dividends despite the uncertain business environment.
Shareholder Return Policy
Provide shareholder return based on shareholder dividends and repurchase of our own shares by adopting a benchmark of 40%～60% of Group Adjusted Profit
<Dividends>
Adopt basic policy of providing stable dividends. (DOE: Dividend on equity ratio: Aim for level of 2.0%～3.0%)
<Share buybacks>
Repurchase own shares flexibly, and as opportunities arise, with due consideration paid to market conditions and the state of capital.
Shareholder Return Forecast for FY2019
<Dividends>
FY2019: The annual dividend is planned at 150yen (up 10yen from the previous year)
FY2020: The annual dividend is forecast at 150yen
<Share buybacks>
FY2019: Following the ¥20.0 billion share buyback determined on November 19 2019,
Share buybacks of ¥15.0 billion maximum will be implemented (determined on May 20, 2020).
Past Shareholder Returns
Total shareholder returns
*1 Figures until FY2017 are Group Core Profit. Please refer to p.84 for the method of calculating the single-year shareholder return ratio.
*2 DOE：Dividend on equity = Annual dividend (interim dividend, year-end dividend, etc.)÷ Net assets
Calculation Methods of “Group Adjusted Profit”, “Group Adjusted ROE”, “Shareholder Return Ratio” and “Adjusted Net Assets”
