By Miyu Okada / Yomiuri Shimbun Staff Writer
Tokio Marine Holdings Inc. will improve its operations in Japan by developing its new business in disaster prevention and mitigation, while also considering such measures as mergers and acquisitions to expand further abroad, the newly appointed president and CEO, Masahiro Koike, said during an interview with The Yomiuri Shimbun and other media outlets.
The following is excerpted from the interview, which was conducted earlier this month.
Shifting to phase 3
Question: What areas do you plan to focus on?
Masahiro Koike: After having gone through phase 1, which dates back to our founding in 1879, and phase 2 in the 2000s, where we expanded overseas operations, we now have more than 50,000 employees actively engaged in businesses in 44 countries and regions worldwide and more than half of our profits come from overseas operations. Our market capitalization has topped 10 trillion yen. The business environment is changing rapidly, and we recognize that we are now at a turning point entering phase 3.
Outside of our domestic and overseas insurance businesses, the most significant evolution for us has been in establishing a solution business. (Construction consulting firm) ID&E Holdings (Integrated Design & Engineering Holdings Co.) has joined our group. We will expand our range of services that were difficult to provide just through insurance, evolving from (services that are provided) "when needed" to (those that are) "always available."
With the leadership transition, it is also crucial to again check on the competitive advantages of each business model. We want to thoroughly review whether our current strengths are really enough and further refine them.
Diversifying away from U.S.
Question: Will you look to further expand your overseas business, which accounts for more than 70% of your revenue?
Koike: We will make sure the profit contributions are solid, that they are driving growth, including by possibly welcoming new partners. Currently, we are highly dependent on the United States, and we want to have a greater presence in other regions. We will increase the contributions from regions that are not the United States.
There are many regions with growth potential among the 44 countries and regions where we already operate. While promoting self-sustaining growth, we will also actively pursue M&A opportunities when they arise.
Question: What are the challenges (for overseas operations)?
Koike: The top executives at our overseas insurance businesses are the first generation to have been involved in acquisitions, and they will be retiring over the next five years or so. I think the big question is whether we can build stronger relationships when the torch is passed to the next generation.
Room to grow in Japan
Question: Your revenue domestically has been strained in the wake of a series of disasters.
Koike: We will transform our business model in light of the scandals (involving Japanese non-life insurance companies). We believe that the Japanese market still has room for growth. There are many things that we can do, such as ensuring our new products are fully available to customers.
In addition, the solution business will be a key factor. We will collaborate with ID&E Holdings to incorporate the know-how it has gained in urban development and other areas into our insurance products, delivering peace of mind and safety that cannot be provided by insurance products alone.
We are also exploring whether we might propose solution businesses in areas such as health care, mobility and decarbonization at other group companies. We expect our business in Japan to continue to play a leading role for the group.
Management team based on merit
Question: What do you expect from the management team going forward?
Koike: I think it's important to take the position of appointing management team members regardless of age or gender. In the scandals, we failed to recognize the gap between common sense in society and our own common sense as an organization. It is important to embrace diversity more. We will select executives and other personnel based on ability, without filtering by age or other conditions.
Keeping up dialogue with overseas investors
Question: What about dialogue with shareholders?
Koike: We will continue to maintain highly transparent communication. I think shareholders might ask such questions as whether we can further streamline operations. We will strive to maximize efficiency, but we believe the current structure is the optimal system, that it allows our employees to work with a sense of fulfillment.
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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June 23, 2025 11:18 ET (15:18 GMT)
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