Tokio Millennium Re’s parent increases its full year targets
The ultimate parent company of Tokio Millennium Re, which retains a substantial presence on Bermuda despite moving its headquarters to Switzerland in 2013, has revised its targets for its full financial year upwards in its latest results.
Tokio Marine, which is the holding company of Tokio Marine & Nichido Fire Insurance, which owns Tokio Millennium Re, grew the net income attributable to its parent company by 69.6 percent year-on-year in the second quarter (July-September) to ¥155.2 billion ($1.4 billion) and raised its full year targets.
The company’s net premiums written shrank by 2 percent over the period to ¥1.70 trillion. At the same time, premiums in the life insurance business jumped 271.4 percent year over year to ¥434.4 billion.
The combined ratio at Tokio Marine & Nichido Fire Insurance increased by 3.3 percentage points to 87.4 percent year-on-year in the second quarter of the company’s irregular fiscal year.
In the six months between April and September the net income attributable to Tokio Marine’s parent company grew by 81.4 percent year-on year to ¥155.30 billion ($1.40 billion).
Its ordinary income grew by 15.4 percent to ¥2.59 trillion over the period.
During the period, Tokio Marine has been expanding its business which is centred on property/casualty and life insurance.
As a result of the 2016 performance, the Tokyo-based insurance holding company revised its forecast for the full 2016 fiscal year, which goes from April 2016 to March 2017. Tokio Marine now expects net income attributable to its parent company up 10 percent at ¥280 billion. Originally, the company was expecting a net income attributable to its parent company of ¥265 billion.
Net premiums written and life insurance premiums are projected to be ¥3.32 trillion and ¥810.0 billion respectively in the 2016 fiscal year.
Net incurred losses relating to natural catastrophe are projected to be ¥45.0 billion for Tokio Marine & Nichido Fire Insurance and ¥3.0 billion for Nisshin Fire & Marine Insurance.
Tokio Marine Holdings is part of the Tokio Marine Group which comprises 245 subsidiaries and 32 affiliates located worldwide, operating in the non-life insurance business, life insurance business, and financial and general businesses.