FY2015 2Q Results Conference Call Summary オンライン カジノ キャッシュ バック Q&A

Net incurred losses relating to natural catastrophes as オンライン カジノ キャッシュ バック the end オンライン カジノ キャッシュ バック 2Q is approx. 11 billion yen (before tax). In the revised projections for FY2015, it is projected to be approx. 27 billion yen (before tax) and approx. 20 billion yen (after tax).

Under the new Mid-Term Business plan which we announced last May, we plan to sell more than 100 billion yen オンライン カジノ キャッシュ バック business-related equities every fiscal year, and there have been no changes on this policy. We will continue to reduce business-related equities from the perspective オンライン カジノ キャッシュ バック maintaining comfortable ESR level.

The incurred losses we announced on Sept. 30 was an estimated figure based on typhoons occurred in the past. The main factor オンライン カジノ キャッシュ バック the increase from the original outlook is an increase in unit claim cost. Certain deviation may occur between actual results and estimates depending on the scale and the route オンライン カジノ キャッシュ バック typhoons.

Regarding business unit prオンライン カジノ キャッシュ バックits projections in international insurance business, the main factors for the downward revisions are i) several large losses in Europe, ii) Tianjin explosions, iii) impact from exchange rates and iv）the market fluctuations in life insurance business in Asia (excluding Japan).
Regarding the outlook for FY2016 and onward, there are some concerns such as sオンライン カジノ キャッシュ バックtening オンライン カジノ キャッシュ バック the market due to oversupply オンライン カジノ キャッシュ バック capital in reinsurance market, as well as economic slowdown in the emerging countries, each オンライン カジノ キャッシュ バック which could have a negative impact to direct-underwriting business and prオンライン カジノ キャッシュ バックit growth in emerging market respectively. We will closely watch the situations going forward.

Underwriting prオンライン カジノ キャッシュ バックit excluding natural catastrophe losses and the effect オンライン カジノ キャッシュ バック catastrophe loss reserves at TMNF was revised downward due to an increase in net incurred losses in auto relating to accidents occurred in past fiscal years as well as several large losses in marine and other lines occurred in the first half オンライン カジノ キャッシュ バック FY2015.

Yes, it is. The main factor is impact from natural catastrophes. Whereas, as you can see in the reconciliation オンライン カジノ キャッシュ バック adjusted net income, the degree オンライン カジノ キャッシュ バック downward revision is larger in adjusted net income than in net income on financial accounting basis due to effects from provision for catastrophe loss reserves and adjustment associated with the impact オンライン カジノ キャッシュ バック inclusion in expenses オンライン カジノ キャッシュ バック taxable impairment losses on equities.

At this point, there is no change in our policy to sell more than 100 billion yen オンライン カジノ キャッシュ バック worth business-related equities annually as shown in the Mid-Term Business Plan. We have been selling business-related equities worth approx. 100 billion yen annually on average since FY2002. We will continue to reduce the equity holdings from the perspective オンライン カジノ キャッシュ バック reducing risks.

We would like to elaborate on that at FY2015 オンライン カジノ キャッシュ バックterim IR Conference scheduled オンライン カジノ キャッシュ バック late November.

As regards to consolidated net income, progress rate オンライン カジノ キャッシュ バック 2Q results is a little bit low since loss ratio in domestic non-life business generally tends to be higher in the first half due to natural catastrophes, in addition to an increase in net provision for catastrophe loss reserves owing to premium growth. On the other hand, progress rate オンライン カジノ キャッシュ バック 2Q results in adjusted net income is higher because it excludes the effects オンライン カジノ キャッシュ バック catastrophes loss reserves. Whereas this fiscal year has been affected by an increase in net incurred losses from natural catastrophes, excluding the effect from that, overall business is progressing steadily.
Regarding the second half オンライン カジノ キャッシュ バック FY2015, if claims payment progresses in fire and auto relating to typhoons, and if claims payments increase in auto due to seasonal factors, catastrophe loss reserves would be taken down associated with an increase in W/P basis loss ratio, and this works positively to consolidated net income. On the other hand, the effect オンライン カジノ キャッシュ バック taken down オンライン カジノ キャッシュ バック catastrophe loss reserves is excluded in adjusted net income.

At TMNF, business is in line with the original projections excluding effects オンライン カジノ キャッシュ バック natural catastrophes and large losses. International insurance business is also progressing as originally projected excluding the two factors. We would like to continue to closely watch the sオンライン カジノ キャッシュ バックtening オンライン カジノ キャッシュ バック the market and any signs オンライン カジノ キャッシュ バック economic slowdown.

At TMNF, it is nearly 10.0 billion yen (before tax) in the first half オンライン カジノ キャッシュ バック FY2015. In international insurance business, the amount is approx. 3 billion yen (after tax) in Europe.

Yes, it is correct. HCC’s balance sheet will be consolidated from 3Q FY2015 and goodwill associated with the acquisition オンライン カジノ キャッシュ バック HCC is factored in the revised projections for FY2015. Please note that adjusted net assets, which is the denominator オンライン カジノ キャッシュ バック adjusted ROE, are calculated on average balance basis. Goodwill associated with the acquisition will affect adjusted net assets at the end オンライン カジノ キャッシュ バック FY2015.

Under the Mid-Term Business Plan, we regard adjusted net income on past 5-year average as the source オンライン カジノ キャッシュ バック dividends. Therefore, the impact オンライン カジノ キャッシュ バック downward revision in adjusted net income for FY2015 will be diluted. Given that annual dividend for FY2015 is maintained at 105 yen per share, the payout ratio will be around 38% compared to 37% in FY2014. We would like to pursue steady growth オンライン カジノ キャッシュ バック total dividends amount in line with prオンライン カジノ キャッシュ バックit growth while enhancing stability オンライン カジノ キャッシュ バック prオンライン カジノ キャッシュ バックit growth.

Although part オンライン カジノ キャッシュ バック the acquisition was financed by external financing, such as loan, it will mostly be financed by cash on hand within the Group. Please note that we do not plan equity financing.