Business Performance during the Fiscal Year under Review

 The Company reported consolidated underwriting income of 3,425.3 billion yen, investment income of 1,450.7 billion yen and other ordinary income of 16.0 billion yen. Thus, the total for ordinary income was 4,892.2 billion yen, representing a decrease of 5.3% from the previous fiscal year.
 Ordinary expense decreased by 8.5% to 4,585.7 billion yen from previous fiscal year as a result of the underwriting expense of 3,800.4 billion yen, investment expense of 69.6 billion yen, operating expenses and general and administrative expenses of 688.5 billion yen, and other ordinary expense of 27.0 billion yen.
 As a result, the Company posted an ordinary profit of 306.5 billion yen, and after factoring in extraordinary income, extraordinary losses, income taxes – current, net income attributable to owners of the parent of 144.3 billion yen was reported, an increase of 1.3 billion yen from the previous fiscal year.
 

Overview of Cash Flows in the Fiscal Year under Review

 With regard to cash flows in the fiscal year under review, net cash flows provided by operating activities decreased by ¥991.8 billion over the previous fiscal year to ¥(323.9) billion, due in part to an increase in foreign currency insurance contracts returns of Mitsui Sumitomo Primary Life Insurance Co. Net cash flows from investing activities increased by ¥374.2 billion over the previous fiscal year to ¥43.9 billion, due in part to an increase in income due to a decrease in money trusts and proceeds from sales and redemption of securities. In addition, cash flows provided by financial activities increased by ¥13.9 billion over the previous fiscal year to ¥79.2 billion, due in part to an increase in income from sales under repurchase agreements, despite an increase in expenditure from redemption of corporate bonds. As a result, cash and cash equivalents at the end of the fiscal year under review have decreased by ¥204.2 billion from the end of the previous fiscal year to ¥1,994.4 billion.
 
 With regard to the liquidity of funds, in preparation for the possibility that cash flow may worsen due to cash outflows used for the payment of claims, etc. or due to unstable market conditions, etc., the Group will ensure appropriate cash flow by maintaining sufficient liquidity and evaluating liquidity with consideration of cash-flow trends, taking into account both assets and liabilities.
 

Operating results by segment were as follows

MSI

MSI booked net premiums written of 1,559.5 billion yen, an increase of 0.8% from the previous fiscal year. The net loss ratio decreased by 3.5 percentage point from the previous fiscal year to 59.8%, and the net expense ratio increased by 0.7 percentage point from the previous fiscal year to 32.7%. Net income of 92.2 billion yen was recorded for this fiscal year.

ADI

ADI booked net premiums written of 1,281.4 billion yen, an increase of 0.4% from the previous fiscal year. The net loss ratio decreased by 3.4 percentage point from the previous fiscal year to 58.6%, and the net expense ratio increased by 0.4 percentage point from the previous fiscal year to 34.9%. Net income of 21.6 billion yen was recorded for this fiscal year.

 

Mitsui Direct

Mitsui Direct booked net premiums written of 36.4 billion yen, an increase of 0.3% from the previous fiscal year. The net loss ratio by 10.7 percentage point from the previous fiscal year to 64.2%, and the net expense ratio increased by 3.0 percentage point from the previous fiscal year to 31.3%. Net income after adjustment for equity interest (segment income) of 0.8 billion yen was recorded for this fiscal year.

Mitsui Sumitomo Aioi Life

Mitsui Sumitomo Aioi Life secured new policies amounting to 1,769.0 billion yen, which includes individual insurance and individual annuities, a decrease of 14.5% from the previous fiscal year. The total amount of policies in force as of the end of this fiscal year was 24,266.9 billion yen, representing a decrease of 0.8% from the previous fiscal year. Net income of 11.9 billion yen was reported for this fiscal year.

Mitsui Sumitomo Primary Life

Mitsui Sumitomo Primary Life secured new policies amounting to 788.2 billion yen, which includes individual insurance and individual annuities, a decrease of 10.7% from the previous fiscal year. The total amount of policies in force as of the end of this fiscal year was 6,595.8 billion yen, representing an increase of 1.3% from the previous fiscal year. Net income of 43.1 billion yen was reported for this fiscal year.

Overseas Insurance Subsidiaries

Net premiums written amounted to 623.5 billion yen, a decrease of 12.4% from the previous fiscal year. Net loss after adjustment for equity interest (segment income) of 3.1 billion yen was recorded for this fiscal year.

Progress Toward Numerical Management Targets and Forecasts

●Group Adjusted Profit for FY2021 is forecast to rise by 85.3 billion yen to 300.0 billion yen.
●Net income is expected to rise by 85.6 billion yen to 230.0 billion yen.

(\bn)

※ 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