Tokio Marine’s international businesses produced a profit of JPY66.9 billion for the first quarter of the 2022 fiscal year, representing year-on-year growth of 15%, driven by a 22% rise in profit to JPY68.9 billion within non-life operations.
While profit was strong across most of its international entities, in Europe, the firm did book an additional provision of JPY4 billion related to the ongoing war in Ukraine, which led a negative performance amid a 121% decline.
At the same time, the strong non-life performance more than offset a negative result of JPY1.5 billion in its life operations in Q1 2022, which represents a decline of more than 131% on the same period a year earlier.
The rise in total profit comes as the firm’s international operations reports overall growth in net premiums written of more than 27%, year-on-year, to JPY588.3 billion, driven by expansion above plan in North America, and the implementation of growth measures by each business.
Notably, non-life premiums spiked by an impressive 28% to JPY560.1 billion, while life premiums increased by over 9% to JPY28.1 billion.
In North America, Tokio Marine says that it exceeded plan across all of three businesses in Q1 2022, mostly as a result of strong underwriting supported by rate increases and lower natural catastrophe losses, as well as a strong investment performance.
In Europe, progress is below plan as a result of the reserve for Russia’s invasion of Ukraine, although the underlying trend for underwriting remains strong.
The company also notes that profits in South & Central America is lower than expected mainly due to the deteriorating loss in auto caused by rising unit repair cost caused by inflation.
And in Asia & Oceania, the carrier notes profit fell year-on-year as a result of the prior year’s impact of COVID-19, but progressed in line with the plan.
The underperformance of its life business in the period, says Tokio Marine, is mainly due to an increase in provision marked by market fluctuations.