⚠ Returns Below the Plan's TargetModerate threat

Tokio Marine Holdings (8766) — threat to the moat

Tokio Marine's return on equity is running a point below its plan's target on the basis that now matters.

Tokio Marine's medium-term plan for the three years to March 2027 targets an adjusted return on equity of 14% or higher, or 20% or higher including gains on strategic equities1. On the new IFRS basis, adjusted ROE was 13.1% in the year to March 2025 and 12.9% in 2026, with 13.0% planned2.

IFRS adjusted ROE (%, years to March)13.1202512.9202613.02027 plan14.0MTP target17.02035 aspirationTokio Marine results presentation, IR conference and MTP
Below target and flat.

The company's aspiration for 2035 is higher still: adjusted net income of ¥1,700 billion or more and adjusted ROE of 17% or more3.

As the strategic equities are sold, equity shrinks less than profit rises only if the proceeds go to shareholders or to high-return acquisitions.

The company's normalised adjusted ROE on its old basis, excluding the equity gains, was 12.6% in the year to March 2025 and 11.7% in 20264. On every measure that excludes the share sales, returns are below the 14% target.

The measure is adjusted ROE. A rise toward 14% would show the capital being used efficiently; a fall would show the equity sales outrunning profit growth.

References
  1. ReportedTokio Marine's medium-term plan for the three years to March 2027 targets an adjusted return on equity of 14% or higher, or 20% or higher including gains on strategic equities.
    Tokio Marine Holdings, IR conference FY2024 - the medium-term plan for FY2024-2026 and its targets. — FY2024-2026 · publ. May 2024 · source ↗
  2. ReportedOn the new IFRS basis, adjusted ROE was 13.1% in the year to March 2025 and 12.9% in 2026, with 13.0% planned.
    Tokio Marine Holdings, FY2025 results and FY2026 projections presentation - adjusted net income, strategic equity sales, shareholder returns and the FY2026 plan. — FY to March 2026 · publ. May 2026 · source ↗
  3. ReportedThe company's aspiration for 2035 is higher still: adjusted net income of ¥1,700 billion or more and adjusted ROE of 17% or more.
    Tokio Marine Holdings, Group Business Strategy IR conference, 26 May 2026 - capital, strategic equities, shareholder returns, the ten-year key statistics and the 2035 aspiration. — 2016-2026 · publ. 26 May 2026 · source ↗
  4. ReportedThe company's normalised adjusted ROE on its old basis, excluding the equity gains, was 12.6% in the year to March 2025 and 11.7% in 2026.
    Tokio Marine Holdings, FY2025 results and FY2026 projections presentation - adjusted net income, strategic equity sales, shareholder returns and the FY2026 plan. — FY to March 2026 · publ. May 2026 · source ↗
Sources
Generated September 24, 2026