Mid-Term Management Plan
Medium-Term Management Plan KIZUNA 2026
The Toa Re Group launched a new medium-term management plan (called KIZUNA 2026) in April which covers 3-year period from fiscal 2024. With a view to our medium- to long-term vision for the Group, KIZUNA 2026 sets 3-year numerical targets and goals for enhancement of the management foundation. We are promoting various measures to achieve and realize these targets.
Medium- to Long-term Vision
[Corporate Vision]
- A reinsurance group that keeps being selected by clients across the world and that is developing together with them by providing optimal solutions
[10 to 20-year Vision]
- In core business we will establish a stronger revenue base by further improving various expertise
- In strategic business we will enhance corporate value and achieve sustainable profit growth by having a specialized field of expertise
The “Corporate Vision”, from a longer-term perspective in our medium- to long-term vision, is intended to promote our business, based on the Toa Re Mission Statement with an emphasis on meeting reinsurance needs from a client perspective, in order to achieve sustainable growth in a rapidly changing business environment.
Further, the “10 to 20-year Vision” aims to achieve sustainable profit growth by further strengthening the core business (the current business base) through improving our expertise, and by creating and expanding strategic business, i.e. specialized areas in which the Group has outstanding strengths.
Group Numerical Targets
In KIZUNA 2026, we have set the following numerical targets for the Group, based on the perspectives of securing soundness of management, contributing to each stakeholder, and maintaining and improving credit ratings.
| Indicators | Targets |
|---|---|
| Soundness(Capital level) | Secure capital level consistent with a rating of “AAA” or higher |
| Profitability(Adjusted ROE) | 5% adjusted ROE(3-year average) |
| Growth(Adjusted profit) | JPY 20 billion(3-year average) |
Goals for Enhancement of the Management Foundation
In view of the rapid changes in the social and business environment, we have identified three priority areas - “SDGs/ESG”, “IT” and “ERM” - and are promoting to strengthen and utilize each of them. In order to steadily promote these initiatives, we formulate and implement concrete action plans in each area based on the initiative policies described below.
| Priority Areas | Initiative Policy |
|---|---|
| SDGs/ESG | Promote various initiatives based on the SDGs/ESGs, recognizing that they are essential to securing the Group’s business continuity and sustainable increase in corporate value. |
| IT | As specific measures to achieve the goals of ‘the transforming business operations’ and ‘creating new corporate value’ through the use of advanced technologies, promote the automation of business operations with IT, scrapping existing operations to generate time to create the new corporate value, and pursue the development of IT human resources to promote the IT strategies. |
| ERM | Promote ERM and further strengthen the ERM framework to secure the Group’s business continuity and sustainable profit growth. |
Explanation of terms
- Adjusted ROE(after-tax basis)： (Net income + Provision for capital reserve(after tax) - Other special factors) / (Net assets +Capital reserve(after tax))
- Adjusted profit： Net Income + Provision for catastrophe reserves (after tax) + Provision for contingency reserves II (after tax) + Provision for price fluctuation reserves (after tax) – Other special factors(Unrealized gain(loss) on FVTPL (after tax), etc.)
- SDGs： Sustainable Development Goals
- ESG： Environment, Social, Governance
- ERM： Enterprise Risk Management