Business Performance during the Fiscal Year under Review

 The Company reported consolidated underwriting income of 4,640.5 billion yen, investment income of 511.5 billion yen and other ordinary income of 16.2 billion yen. Thus, the total for ordinary income was 5,168.3 billion yen, representing a decrease of 6.0% from the previous fiscal year.

 Ordinary expense decreased by 3.8% to 5,010.6 billion yen from previous fiscal year as a result of the underwriting expense of 3,749.8 billion yen, investment expense of 512.9 billion yen, operating expense and general and administrative expense of 694.6 billion yen, and other ordinary expense of 53.2 billion yen.

 As a result, the Company posted an ordinary profit of 157.7 billion yen, and after factoring in extraordinary income, extraordinary losses, income taxes – current, net income attributable to owners of the parent of 143.0 billion yen was reported, a decrease of 49.6 billion yen from the previous fiscal year.

 Operating results by segment were as follows:

 

MSI

MSI booked net premiums written of 1,547.9 billion yen, an  increase of 2.5% from the previous fiscal year. The net loss ratio decreased by 3.0 percentage point from the previous fiscal year to 63.3%, and the net expense ratio increased by 0.4 percentage point from the previous fiscal year to 32.0%. Net income of 94.0 billion yen was recorded for this fiscal year.

ADI

ADI booked net premiums written of 1,276.7 billion yen, an increase of 3.5% from the previous fiscal year. The net loss ratio decreased by 5.8% percentage point from the previous fiscal year to 62.0%, and the net expense ratio increased by 0.7 percentage point from the previous fiscal year to 34.5%. Net income of 44.7 billion yen was recorded for this fiscal year.

 

Mitsui Direct

Mitsui Direct booked net premiums written of 36.3 billion yen, a decrease of 0.8% from the previous fiscal year.  The net loss ratio by 1.3 percentage point from the previous fiscal year to 74.9%, and the net expense tario increased by 3.0 percentage point from the previous fiscal year to 28.3%. Net income after adjustment for equity interest (segment income) of 0.1 billion yen was recorded for this fiscal year.

Mitsui Sumitomo Aioi Life

Mitsui Sumitomo Aioi Life secured new policies amounting to 2,068.4 billion yen, which includes individual insurance and individual annuities, a decrease of 33.6% from the previous fiscal year. The total amount of policies in force as of the end of this fiscal year was 24,458.0 billion yen, representing a decrease of 0.3% from the previous fiscal year. Net income of 7.5 billion yen was reported for fiscal year.

 

Mitsui Sumitomo Primary Life

Mitsui Sumitomo Primary Life secured new policies amounting to 882.7 billion yen, which includes individual insurance and individual annuities, a decrease of 21.1% from the previous fiscal year. The total amount of policies in force as of the end of this fiscal year was 6,514.0 billion yen, representing a decrease of 2.5% from the previous fiscal year. Net income of 20.3 yen was reported for fiscal year.

 

Overseas Insurance Subsidiaries

Net premiums written amounted to 711.9 billion yen, a decrease of 0.4% from the previous fiscal year. Net income after adjustment for equity interest (segment income) of 36.1 billion yen was recorded for this fiscal year.

 

Progress Toward Numerical Management Targets and Forecasts

●Although we cannot predict the extent of the COVID-19 impact, while its effects are still being felt we will prioritize efforts to reduce expenses, and work to take advantage of environmental changes once the crisis is over to achieve further growth.
●The Group Adjusted Profit target for FY2021 has been revised to \300 billion on a provisional basis, the Group Adjusted ROE 10% target remains unchanged and we will strive to improve capital efficiency.

 

 

(\bn)

※1 Including the decrease in income taxes paid in FY2019,which is \29.6 billion among the effects of Reorganization of International Regional Business of MSI
※2 Gross premiums income is for domestic life insurance subsidiaries only.

 

 

Group Adjusted Profit and Group Adjusted ROE

<Reference> Group Core Profit and Group ROE

 

※Decrease in income taxes paid in FY2019 among the effects of Reorganization of International Regional Business of MSI