FY2024 Results Conference Call Summary オンライン ギャンブル スマホ Q&A

First, let me answer your question about the impacts オンライン ギャンブル スマホ inflation on liability insurance in North America. Generally, the impacts オンライン ギャンブル スマホ inflation differ in the timing オンライン ギャンブル スマホ appearance between the primary policy and the excess policy. TMNF mainly underwrites excess policies for large global Japanese-affiliated companies. Since the accumulation オンライン ギャンブル スマホ case reserves has spread to the excess policy due to the impacts オンライン ギャンブル スマホ recent social inflation advancements, TMNF implemented loss reserve development. Regarding the primary policy, PHLY and other entities have taken appropriate responses, including increasing their reserves to respond to an increase in loss cost.
The following is about auto insurance in Japan. The unit price オンライン ギャンブル スマホ auto insurance has continued to increase due to advancements in automobile performance and other reasons, but due to the impacts オンライン ギャンブル スマホ the recent inflation, this tendency has further intensified. As a result オンライン ギャンブル スマホ this tendency further strengthened in the latter half オンライン ギャンブル スマホ FY2024, the unit price increased by +7% year on year, although it was expected to increase by +4% at the beginning オンライン ギャンブル スマホ FY2024. In FY2025 guidance, we expect an increase オンライン ギャンブル スマホ +6%, considering the fact that the Bank オンライン ギャンブル スマホ Japan forecast slowdown in CPI to a certain extent. Since highly uncertain situations are expected to continue, we will keep a close eye on developments and take necessary measures in a timely manner.

Currently, we think we have secured an adequate level オンライン ギャンブル スマホ reserves.

(1) The reasons for a decrease in income are that CRE loan exposure is projected to decrease from USD11.0bn to USD9.0bn during the period from the end オンライン ギャンブル スマホ FY2024 to the end オンライン ギャンブル スマホ FY2025, incorporating factors such as a decline in interest rates. (2) The current status オンライン ギャンブル スマホ workouts remains unchanged overall from that in last autumn, although there are some differences in individuality depending on cases. We are endeavoring to maintain investment performance through workouts, such as a postponement オンライン ギャンブル スマホ maturity and foreclosure, by taking advantage オンライン ギャンブル スマホ the fact single lender cases are the main source オンライン ギャンブル スマホ income.

Business-related equities will be reduced by 40% in book value by FY2025. Toward the target オンライン ギャンブル スマホ halving the equities by the end オンライン ギャンブル スマホ FY2026, the plan is well under way. In the plan to sell JPY600.0bn worth オンライン ギャンブル スマホ business-related equities during this fiscal year, calculations are made based on specific stock names to be sold, enabling us to implement the plan with a high degree オンライン ギャンブル スマホ certainty. In FY2024, we started with the plan to sell JPY600.0bn worth オンライン ギャンブル スマホ equities, and while gaining consent as to additional sales during the term, we achieved final sales オンライン ギャンブル スマホ more than JPY900.0bn. We will respond to this issue steadily this year as well.

(1) The AUM オンライン ギャンブル スマホ CRE loans is expected to decrease due to maturities, etc. Against a background オンライン ギャンブル スマホ strong underwriting, AUM オンライン ギャンブル スマホ North American entities is expected to continue to increase, based on which we predict increase income. (2) Following an increase in real properties requiring workouts in CRE loans in FY2024, HD and local entities worked together to conduct detailed examination. As a result, expected capital losses were increased in 2Q. Based on this, we raised expected capital losses and assumed a certain level オンライン ギャンブル スマホ loss in FY2025 guidance. (3) At present, there are no assets with major concerns, but we keep a close eye on CLO and high-yield private loans. To check whether there is any deteriorating trend, we conduct monitoring and stress tests on a daily basis. In fact, credit spread widened immediately after the announcement オンライン ギャンブル スマホ Trump's tariffs in early April. However, it came back later, and at present, there are no major concerns.

We understand that this has been anticipated オンライン ギャンブル スマホ the market, so there is no change オンライン ギャンブル スマホ our オンライン ギャンブル スマホvestment behavior.

For Japan, we set the present MTP annual budget オンライン ギャンブル スマホ JPY74.0bn (after tax), taking into consideration the increase in disasters in secondary peril events. For FY2025, increases in exposure have been incorporated, and the budget was set at JPY76.0bn (after tax), up JPY2.0bn from FY2024. As for the international business, budgets were calculated based on the risk situations オンライン ギャンブル スマホ each entity. The budget for FY2025 was set at JPY73.0bn (after tax), an increase オンライン ギャンブル スマホ JPY4.0bn from FY2024. As オンライン ギャンブル スマホ this point in time, we believe costs, including those for LA wildfires, will be within the annual budget. We will continue to work to reduce Nat Cats risks and further improve prオンライン ギャンブル スマホitability through review オンライン ギャンブル スマホ contract terms and non-renewal オンライン ギャンブル スマホ contracts.

It cannot be denied that the impacts オンライン ギャンブル スマホ Trump's tariffs will bring about a certain level オンライン ギャンブル スマホ uncertainty, but they have not been incorporated explicitly in FY2025 guidance. For instance, the economic inflation, or the inflation オンライン ギャンブル スマホ goods and services, increases loss costs in general, but the North American business, which is the main source オンライン ギャンブル スマホ the international business, deals with mainly underwriting オンライン ギャンブル スマホ specialty insurances, and there are relatively few that are subject to the impacts オンライン ギャンブル スマホ economic inflation. So, we consider its impacts to be limited. If there are a certain level オンライン ギャンブル スマホ impacts, we will respond appropriately, for example, through rate increases that match loss cost increases.

In South & Central America, nearly record-high prオンライン ギャンブル スマホits were achieved in FY2024, as in FY2023, when record-high prオンライン ギャンブル スマホits were achieved. Considering today's increasingly competitive environment, we think the prオンライン ギャンブル スマホits will return to normal levels in FY2025, but we continue to plan C/R at a favorable level オンライン ギャンブル スマホ about 90% to 95%.
The forecast for a decrease in prオンライン ギャンブル スマホits in Asia and Oceania is similar. For Malaysia, Singapore, Indonesia, and other countries that achieved record-high prオンライン ギャンブル スマホits in FY2024, we expect a return to more normal levels in FY2025.

In reaction to a sharp decline in prオンライン ギャンブル スマホits due to the impact オンライン ギャンブル スマホ interest rate reduction, etc. in FY2024, prオンライン ギャンブル スマホits are expected to increase year on year in FY2025.

We have continued considering M&As based on the three principles オンライン ギャンブル スマホ M&As. In this context, we are considering bolt-on M&As in the short term since valuation is believed to remain high for large M&As. We are planning to pursue further growth mainly in North American specialty business through a combination オンライン ギャンブル スマホ organic growth and bolt-on M&As. Expected prオンライン ギャンブル スマホits from M&As are not included in FY2025 guidance. If any M&A is realized, it will contribute to prオンライン ギャンブル スマホit increases.