Tokio Marine Holdings, Inc. (8766) Earnings Call Transcript & Summary

[Interpreted] Ladies and gentlemen, thank you very much for gathering. This is Ishiguro from IR Group, Tokio Marine. First of all, I would like to convey my heartfelt sympathy to the people who were affected by the Fukushima earthquake that was triggered off the coast of Fukushima. So we are going to take the measures that are duly required as Tokio Marine Group to this incident. So now we would like to start. At Tokio Marine Group, we host these seminars regularly titled Tokio Marine Insights selecting topical themes of interest to our fellow analysts and institutional investors. Last fiscal year, we did digital strategy and TCFD. This fiscal year, we did the renewable energy growth strategy in June, but now this is the second time for this fiscal year, and we're going to talk about diversity and inclusion which is the base of growth for the global insurer, Tokio Marine. I would like to introduce today's speakers. From Tokio Marine Holdings, we have Ms. Mika Nabeshima, Chief Diversity and Inclusion Officer. Also, Associate Director of Claims Service Department 2 at Head Office, we have Ms. Junko Sato. These 2 are the speakers for today. We also had planned to have Ms. Caryn Angelson, who is scheduled to speak today, but due to her physical conditions, she is absent for today. Now I would like to introduce how we would like to proceed today. So from the 2 speakers that I just introduced, we will have a presentation based on the documents that are already up on the home page today. Then later, we would like to take questions. Please type them in the chat box in the bottom part of the page that you are kindly looking at now. We would like to end by 4:30. But if we have more questions, we can go until 5:00 p.m. And in this venue, we have the minimal number of headcount here to prevent the spreading of the infection as much as possible. The speakers will excuse us and remove our masks. Ms. Nabeshima?

[Interpreted] Yes, as was introduced. I am Mika Nabeshima, Chief Diversity and Inclusion Officer at Tokio Marine Holdings. Thank you very much for having us today. So at Tokio Marine Group, we view diversity and inclusion, D&I, as a core management strategy. Therefore, the position of Group Diversity and Inclusion Officer, CDIO, has been made effective April 2021, and I've been appointed as the first CDIO. One of our responsibilities is to promote and instill D&I from various angles, such as closing the gender gap and leveraging our global talent pool. But the responsibilities are naturally global and multifaceted and I'm working to perform my duties in close cooperation with the HR personnel in each country, including Caryn Angelson from Tokio Marine North America Services, who will take the post of Deputy CDIO soon. So today, I would like to take you through Tokio Marine Group's efforts in D&I. And we will also have Ms. Sato from TMNF talk about her own experience. Please turn to Page 3. Over the past 2 decades, Tokio Marine has made great strides in acquiring a diverse workflows -- workforce as we allocate our risks geographically through global expansion. We are open to new ideas and perspectives from new employees and acquired businesses, and we've built inclusive workplaces where employees have mutual respect. The acquisition of excellent talent and expertise is arguably one of the most significant rewards we got from the M&A activities that we conducted. At the same time, we are quite aware that social issues are becoming increasingly complex globally, and the world is facing various risks. So we believe the promotion of D&I is essential to address the breadth of social issues and diversifying customer needs going forward. Please turn to Page 4. This slide explains how strategically important D&I is for Tokio Marine Group. We consider D&I as our competitive advantage and the group's integrated strength because a homogenous organization could only come up with uniform solutions. So therefore, as I mentioned at the very beginning, we believe that D&I is an essential success factor that helps us navigate through this ever-changing market environment and achieve further growth in a world of uncertainty. Based on this understanding, we established the Tokio Marine Group vision on diversity and inclusion in October 2021. This is on Page 5. In promoting D&I, every management member of Tokio Marine Group is committed to the 4 key perspectives: attract; empower; develop and promote; and retain. We are committed to establishing an environment where diverse talent can fully exert their abilities and to become a truly inclusive global insurance company in the context of our timeless pursuit to be a good company. Please move on to Page 6. Now I'd like to introduce the Diversity Council, a framework to robustly promote D&I strategy. As for the members, the council was led by our CEO, Komiya, and the members include myself, Caryn, internal and outside directors and employee representatives. There will be 3 to 5 employee representatives with a 1-year term selected to reflect the opinions of minorities on key issues to be addressed by the council. Until now, each group company has worked on their own D&I initiatives, but now we have this council in place to facilitate communication and promote initiatives across the group. On Page 7, we describe the Diversity Council's initiatives since its establishment in April 2021. In this council, which sits right under the CEO, we have put policies and measures in place and have communicated with external parties. Today, I'd like to explain these in detail today. Please move on to Page 8. There are various actions we must take to realize our vision on D&I. And the 2 immediate issues we identified are closing the gender gap and creating an inclusive culture. We have been working on both issues, but the gender gap needs to be further narrowed compared with global peers and creating an inclusive culture is critical to boost diversity. So that is why we see these 2 elements like a bread and butter relationship. To make Tokio Marine Group, a truly global company, we need to build and maintain an inclusive culture. Please move on to Page 9. Here, I'd like to explain the first key issue in our D&I strategy, creating an inclusive culture. Tokio Marine has resolved emerging issues and achieved growth by acquiring diverse talent through methods, such as M&As and matching these people with the right assignments. For instance, Caryn Angelson, she is the CHRO and COO at TMNAS; the group company in the U.S. And also, she is double heading the HR role at Tokio Marine Holdings. Also in our top management team and global committees, we have global talent with a diverse range of nationalities and backgrounds and their wisdom and expertise help us resolve the global challenges we face. In such a diverse environment an inclusive culture is essential to ensure open discussions from various perspectives and to maximizing the effect. As I explained, Tokio Marine started its global expansion from around the year 2000 and promoted women's active participation from around 2008. We take pride in being the top runner in D&I in the Japanese financial industry. And you might imagine how challenging it is to foster inclusiveness in a highly homogenous society such as Japan. So in our annual culture and value survey held at the group level, you can see this in the numbers. We scored 3.8 for the question. My workplace has an inclusive culture that enables active participation by all employees. We were pleased with this result because it was above the average of 3.5, but of course, we still see room for improvement. Please move on to Page 10. So how can we foster this culture? While diversifying personnel to be assigned to key posts in the group and making English the official language may have a certain level of impact. We at Tokio Marine believe that instilling our purpose is crucial for uniting the diverse personnel as a team and establishing an inclusive culture. Since our foundation in 1879, our purpose has been to protect customers and society in their times of need. And to realize this purpose, we have encouraged our employees' desires and enthusiasm over the years. In other words, the employees' motivation to deliver this purpose has been the driver that allowed us to sort new heights. We've always acquired companies with good cultural affinity. But to further instill our purpose, we have implemented a variety of initiatives around the world, such as the Majikirakai, a form where we talk about serious matters very casually. Our CEO, Mr. Komiya serves as the Chief Culture Officer, CCO, and he is asking employees around the world, what is our business for. During the pandemic, he has conducted 3 to 4 virtual world tours every month to communicate with management and employees across the groups, and he has also held town hall meetings. And I also have hosted the Majikirakai discussions in all levels of the domestic organization regarding our purpose and closing the gender gap. Now let me talk about some of the key initiatives occurring in North America. Move on to Page 11, please. Fostering an inclusive culture is a constant challenge and an imperative for our group companies. We have learned over time that even small inclusive movements can mean a great to our employees. In the Tokio Marine North America companies, we introduced an extra floating holiday. In 2021, recognizing that despite our best efforts to be inclusive, our official work calendar did not always meet the needs of our employees to celebrate a significant day, him, her or them. This extra day recognize this fact and enabled our employees to celebrate a day that was personally meaningful to them. Another example would be Philadelphia Insurance. Here, we recently formalized its Diversity Council at the end of 2020. While formulating this committee, Philly paid special attention to ensure all areas of the business were represented, various levels within the organization were represented and various dimensions of diversity were also represented. In short, Philly knew that the council would only be effective and importantly, perceived as legitimate if it were diverse and inclusive in its representation. One of the companies in North America, Pure has made inclusive representation, a key facet of its D&I strategy. To this end, peer challenges itself to have a workforce that is as diverse as the communities in which it is located. Pure evaluates the demographics of its workforce and compares that to the representation of those groups in the broader United States and to the local communities in which their offices are based. Pure also looks to measure the percentage of women in senior roles and actively solicits feedback and measures about the manager's performance on inclusion and et cetera. Moving on to Page 12. I'd like to explain the closing the gender gap initiative, which is the second key effort. Focusing on the pipeline is the key here. Women are already playing an active role in various positions at Tokio Marine. Over 30% of leadership positions globally across the group are held by women, and we are working on further initiatives tailored to the unique challenges of each group company. Consequently, we will aim to increase female directors and audit and supervisory board members to realize the principles set forth in the 30% club, which is to increase competitive advantage and to exert the group's integrated strength. Please move on to Page 13. Specifically, TMNF, our core company in Japan has focused on closing the gender gap as part of its growth strategy. We are concentrating our efforts on fostering female leaders and expanding their opportunities in order to have women participate in all decision-making processes. And since 2008, TMNF has reduced about 30% of mainly sales-related administrative work through business process reform and work cell reform. And thus, many female employees have been transferred from these administrative work to sales and marketing. In addition to providing the hardware such as the job request system, including transfer to regional offices and the launch of remote job request system in 2022, we aim to raise awareness of both female employees and their managers through training on unconscious bias and also by communicating expectations providing training and creating opportunities for all employees to shine. Also from FY '20, we have provided a mentor system between managers and executives to support individual growth. This is also the part of the pre-management school that we are providing to the female who are right before the step as they approach management. Through these steady efforts, we created an action plan in line with the act on promotion of women's participation and advancement in the workplace with a target of 50% female in leadership pipeline positions by FY '23, and achieve this ahead of schedule. So now we added another target to have 30% female in leadership positions by FY '30. Now let me hand over to Sato san to share her experience about how these programs supported women's activities and how it contributes to our corporate value.

[Interpreted] As introduced, I am Sato. I joined the company in 1989 as a new university graduate in the area course hoping to work in a general admin position with no location transfers. I was assigned to the claims service department, where I was in charge of paying insurance claims to customers who experienced automobile accidents. At that time, the employees in the area course, all of whom were women were responsible for negotiating with parties involved in the accident. The global course employees who were mostly male were handling lawsuits, complaints and interviews as well as organizational management and talent development. At the time, there were no female managers, section chiefs or in high rank positions, and there were hardly any working mothers altogether. Since the early '90s, the company has been promoting active women and the senior members in the area course were actively expanding their horizons. I myself was encouraged by my boss to change and expand my role. But work in the claims department involved tough negotiations and interviews. So we were often told that women are just not good enough for the task. And I was anxious because I didn't have a role model, and I was not sure if I should step up to try the global course. At the same time, I got married and had a baby. I was quite unsure about my career path. But my manager at the time said to me, why don't you just try it out, and let's see what the challenges are and how we can overcome them. So with this encouragement, finally, I decided to take on the challenge. My manager then introduced me to the flex system or mentors and some female employees in area courses experiencing the same environment. Also a higher ranking member accompanied me in handling difficult complaints and showed me how to negotiate with these parties, thoroughly coached me on management of people, talent development methods and knowledges around work. I seriously considered how possibly a working mother in the claims department could expand her area of activity and tried everything I could without assuming that it's impossible. So gradually, I gained the courage and skills to gradually expand my role. This is how women in the area course were freed from the serotypes that high rank positions are too difficult for women to handle. Please move on to Page 15. In 2009, I was promoted to Section Manager as well as Manager of a system development project. I was the only female manager, and I had no experience in management or development and felt burdened with this big project. Because this big project was a part of the company's future at stake. But words from my boss help me breakthrough. Your role is to build the strongest team to develop a world-class system someone like you who best understand our customers' feelings would never fail in managing this project. You can do it. I reaffirmed my role and became mentally prepared in making use of my strengths in team management and field experience. However, right around that time, my daughter grew out of the after-school nursery. And so after school, she would come straight home to spend time alone. She also started to study for the middle school entrance exams because she wanted to try this as a part of her studies. But on my part, the system development role required me to respond at night, and I couldn't find enough time to be with her. I tried to tell myself that child rearing is quality over quantity, but my daughter who is struggling to keep her grades up, cried, Mom, please quit work. I had no idea what to do. But what saved me at the time was the network of female managers in the company. They gave me a lot of useful advice based on their own experiences. And with support from my workplace and my family, I managed to support my daughter through her exam. And also, I was able to release the system to all branches. Currently, I am managing a branch as the Head of the Claims Department for Insurance Products in the health care field. I'm also working on promoting the understanding of D&I. I feel that it's particularly important to change the awareness and behaviors of managers when it comes to active women. For example, we conduct trading sessions in which female managers give advice to male managers on fostering the careers of female employees. We feel that this effort is helping to accelerate changes in the male managers' awareness and behaviors. And now my current effort is to achieve a 50-50 ratio of male and female managers in the decision-making process in our department. Because the personal accident and third sector insurance that I am in charge of covers everyone from children to the elderly, we need systems, services and products that match their diversifying needs. Through internal discussions with both men and women, various ideas are exchanged, and thus, we can think about our customers from a diverse perspective, which I feel leads to new ideas and quality improvement. I feel that the company is also relying on promotion of active women. Female managers and associate leaders are there in all departments, taking advantage of the company's systems and structures and expanding their roles into new opportunities even if they are not experienced. And I'm pleased to see an increase in the number of young female employees who see various role models and raised their hands to higher grades. Now this concludes my part of the report. But as I have just shared my experience, the advancement of women will not happen by the enhancement of the system alone. It's essential for the company to provide opportunities according to each individual's needs for supervisors to clearly state their expectations, boost their motivation, inspire them and follow up with training. I wouldn't be here if it weren't for our company policy to communicate expectations, provide training and to create opportunities for all employees to shine. Going forward, my mission is to create role models for female department heads and to link their success to increasing our company's corporate value. That's all for our efforts at TMNF. Next, regarding the initiatives focused on women in North America. Back to you, Ms. Nabeshima.

[Interpreted] Yes, we have a diverse set of companies in North America. So therefore, each company executes its women's empowerment programs in relation to its business needs and distinct characteristics. I will take a moment here to highlight a few of our key D&I initiatives. At TMNA services, a shared service company for many of our North American subsidiaries, we have a robust women in IT group and this was established in 2015. It has been historically focused on gender equality and inclusion in the field of information technology, a discipline that has historically low participation rates by women. Also, women in IT helps its members develop leadership skills and provides external engagement with industry leaders in IT and mentorship. At the Philadelphia Insurance companies, since 2013, the company has sponsored a women's leadership series dedicated to the development of female employees, including networking, professional development and mentorship. The group has field office ambassadors in 5 regions to take care of female employees who work in various areas in the U.S. Please move on to Page 17. So TMHCC has sponsored 2 cohorts of women to participate in elevating women and leadership, a 6-month intensive program dedicated to the acceleration of women in leadership roles. As you may know, TMHCC is a specialty insurance company and requires its leaders to manage a diverse set of insurance products. Thus, this product partners with LHH, a global talent management firm with a deep research practice and experience, so that women leader candidates are prepared an arm with the skills necessary to lead the organization as experts. Finally, regarding Pure. Pure focuses on high net worth personal lines, the number women classified as high networks expanding. Thus, it is critical to ensure that the management team reflects and incorporates decisions impacting this expanding population. For this reason and others, Pure sponsors a women's leadership committee that focuses on identifying and developing high-potential women easing the barriers to rejoining the workforce for this group and building a supportive community. The cases we presented today here are just a fraction of what we do. Going forward, we will continue to fully engage our diverse talents around the world to provide greater safety and security to our customers, pursue sustainable growth for the group and provide value to our stakeholders.

[Interpreted] Thank you for your attention. Thank you very much. So now we would like to move on to Q&A session. Please go ahead and type in your question in the chat box at the bottom of the screen. And if you would like to cancel just please state so in the chat box. While we wait for your questions, I would like to ask a question. So let's just review what you've mentioned in your presentation. Ms. Nabeshima, I'd like to ask you. So we very much understand that Tokio Marine is expanding our business globally. This is something that we have always communicated to our investors. But how about the ratio of non-Japanese members and the Board and the management and the employee base.

[Interpreted] Yes, currently, in the Board member of Tokio Marine Holdings, we do not have non-Japanese members. But in terms of international members, we do have a very international set of talents if you can confirm in the skill matrix. In the executive officer level, we have the group company CEOs overseas, and those CEOs can also take the role of the Senior Director at the company. So this is the way they join the global committees and participating as the group leaders. So you can see these broad, diverse talent is something that we have acquired through our overseas M&A, something that our peers cannot imitate. But it doesn't mean that we're complacent and that is we would like to continue to expand globally. And so the key is, first of all, the diversity of nationality in the Board, and this is something that we must achieve going forward. And in that sense, we very much understand that it's not like all we need is a non-Japanese person. We must make sure that this person is capable and has very good character. We're always looking out for good talent.

[Interpreted] Thank you very much. Seems like we have some questions, so let's take them. I would like to read what is in the chat box. So first of all, SMBC Nikko Securities, Mr. Muraki. This is a question regarding Slide 9. You have the information regarding culture and value survey, which you do regularly. So in overseas companies, I understand that they do have inclusive meritocracy as KPI in their mid-term plan. And they publicly disclosed the target and the progress as I understand. But at Tokio Marine Group, I'm wondering how you position these indices and how you act on them. And by improving the index here, I'm wondering what kind of improvement in the management are you expecting. Ms. Nabeshima, please.

[Interpreted] Yes. Regarding the culture value survey. This is something that we provide to all employees around the globe in 10 languages. So by asking the same questions over time, we can understand the culture of our group companies and the sense of values that they have and look at what happens over time. Now the trend over the group is, engagement is less -- engagement is not less due to the pandemic, actually, the engagement score is going up despite the pandemic. So you can see that we need to voluntarily improve these indices, but the importance of this in our strategy is so important that we would like to continue to focus on these questions in the survey. These are questions that we made, though. So it is difficult to benchmark ourselves to peers. As of now, the scores of the survey to be disclosed and to talk about how it is up or down, we do not have plans to do so. It will be kept internal. But we know that the improvement of the culture will lead to engagement. So this is what we would like to monitor going forward.

[Interpreted] Thank you. So next, we have a question from Mr. Watanabe, Daiwa Securities. Two questions actually. And the first one is regarding inclusive survey. Again, on Slide 9, the culture and value survey. This is a question regarding the results. These scores that you have. This is the one from 2021, I understand. But what were the trends up to date? And the other question is, are there any other ways to measure inclusiveness other than the survey. Ms. Nabeshima?

[Interpreted] Yes, thank you very much. Regarding this set of questions on Slide 9, the score was 3.82 before. And then 2021, it went up 0.01 points. So it is a difficult issue as to how to evaluate this increase of 0.01. But the year 2021 is when we had remote work with the pandemic and working remotely spread really quickly as we had more lockdowns overseas and people could hardly come to work. And so basically, the whole year or actually 2 years, this situation has continued. But still, we were able to get this score and it has improved very slightly, but still, it has improved, and that is something that we can evaluate as positive. It is very difficult to measure an inclusive environment with numbers. But one way to measure it is to conduct these culture and value surveys casted to our employees and also looking at the headcount ratio in the management, different experiences, different generations, we do need to confirm that we have a diverse personnel allocation throughout the organization. Another way to confirm this is to talk directly to the employees through the Majikirakai discussions and also exchange dialogue with the management.

[Interpreted] Thank you. And we have a second question from Mr. Watanabe. This is regarding the contribution of D&I to the business management. Could you come up with unique products or any cases where you've been able to mitigate risks due to D&I? And it seems like we have similar questions from Mr. Nagasaka from Morgan Stanley as well. From Mr. Nagasaka, we have this question, which is how are you feeling about the result of D&I providing good results in the business management. Has your work prices improved? Has your productivity been uplifted? So again, this is a question regarding the link between D&I and the business performances. Mr. Nabeshima?

[Interpreted] Yes, thank you. So in terms of D&I, this obviously encompasses the issue regarding personnel. But diversity is also about the risks. It's a geographic allocation of risks and also the different types of instruments that we have. So in that sense, we think that, first of all, in Japan, we have the natural disasters, which is a unique risk that is seen starkly in Japan, and this risk is allocated with our other overseas operations. And by having these international operations, we're able to engage in business lines that we don't have in Japan and get knowledge and expertise about what is happening in overseas businesses and also in Japan. We are developing new insurances -- various types of insurances like short-term ones as well. And it is coming up because we have more diversity and inclusion in the organization. We know that there's a lot of change happening in the world and our customers are already a very diverse population too. And so it only makes sense to have a diverse employee profile at our company as well. Going forward, we would not only work on gender gap, but also the generation gap as well because there are different senses of values across the different generations and the needs will be different as well. So yes, we would like to make sure that diversity is not only about gender, but also about the senior people, the younger people, the experience as well, whether you have joined the company right out of university or you came in as midcareer, this also creates a difference too and helps to provide new and different ideas throughout the company. Thank you. So we are making our decisions globally, and that is something that we always explain in our IR activities. In our asset management, retention, digital. For these topics, we always make our decisions globally. And so to have this unified group management, this is something that we've been doing over 6 or 7 years now. So for us, it was very hard work in the beginning, but it is very much settled in our culture as of today.

[Interpreted] Thank you very much. Moving on, we have another question from Ms. Nagasaka from Morgan Stanley. So you said that you are going to have the right people in the right positions with your global companies under your umbrellas. And you're going to maximize the result with various business styles and business -- different backgrounds, but what were the difficulties in doing this? And how did you overcome those difficulties. If you have any episodes that will be great to hear. Ms. Nabeshima, please.

[Interpreted] Yes. Thank you very much. So in terms of various personnel, the journey starts out by first understanding where these people are and what kind of people they are. So in terms of the overseas market, we have the successful business models and the companies that have good culture fit. These are the ones that we have acquired in our group over time. But having said that, each of the company do have their own character and they manage their own business very well. In that sense, it could also mean that they're very self concluded. But then again, you still need to be very open about finding out what kind of people are out there? And what kind of talent there are out there in the market and how we can utilize them in the organization. This is the first thing that we tried in our journey. Now we started to do this to manage our company globally. We were looking at the functional access and also the regional access looking at the various communities and saw the crossroads between different people and found what kind of talents and qualifications we can use and pick them up. And by combining them well, we can exert very good synergy. So although we already had a very good culture fit, since we acquired them, still, each companies have their own priority and there may be differences in the sense of values. So it also is very important to work on alignment. Alignment through very meticulous communication. Furthermore, in terms of the comprehensive global management, this is still not finalized yet. This is something that is still evolving as we speak. So as we continue to grow, we need to continue to figure out what the ideal integrated business management style would be for the group going forward. And this is -- the debate that we need to have within ourselves to nurture the best talent.

[Interpreted] So I would like to also ask a question to Ms. Sato. Ms. Sato, in your presentation, for example, on Slide 13, you talked about several systems that you have in the company. Now I would like to ask you what was really the key trigger that allowed you, Ms. Sato, to be who you are right now? I mean I know that it's not just about systems, but how about corporate culture. And I most introduced -- interested in the key to what we really need to have the next Ms. Satos in the organization?

[Interpreted] Yes, in terms of the system and the culture to your question, I have gone through the experience of using the maternity leave system and the flex system as well. These were really the systems that help me go through child rearing and maintaining my career as well. And also, it was about communicating expectations to our people and training your people and continue to make sure that they can shine in the organization. This is really the key word that my boss taught me, and it has continued to change my acknowledgment about what I should do. It was really helpful. Also, I had great senior colleagues who were trying to do new things and would be very open to helping each other. I think that it is based on the culture that we have within the company, which is to support our colleagues that are trying to do new things and always trying to step forward to do new things, grow with each other. Now I believe that in the company, we have a lot of systems to promote the activities of women, but the women's career and life events timing is becoming diverse as well. So we believe that going forward we need to make sure that these systems are optimized in terms of the awareness regarding career development and work-life balance and the work style as well, making sure that we have the right support, the right advice so that they can hone their experience as management going forward.

[Interpreted] Yes. Thank you very much. So we have another question. So this is Mr. [ Toda ] from the Resona Asset Management. In order for you to introduce your purpose. You have Majikirakai, which is the session where people gather to talk about serious topics casually. So this effort, is it really penetrated within and out of your main headquarter office. Are your subsidiaries also doing this as well? Because you have a total headcount of 40,000 people. What are the efforts that you're making to introduce Majikirakai into every member in the group. And I understand that you're doing this not once, why is it that you're able to continue this on a regular basis. So I would like to have Ms. Nabeshima answer the overall questions. And later, I think maybe I would also like to ask for more explanations about what people actually do in the Majikirakai, Ms. Sato, if there's anything that you've experienced recently, please? Ms. Nabeshima?

[Interpreted] Yes, thank you very much. So in terms of this Majikirakai, this is really about talking about serious topics casualty and the theme could be anything. But the thing is you have the executive officers and the employees getting together and talking about the direction of the company and asking the management to explain the details of the mid-term plan. I think this would be some of the main topics that always come up because our vision is to be a good company, as you all know. And this good company is one of the themes often heard in Majikirakai discussions because people are asking like what is a good company. I mean it is a common language between all of the divisions, so it helps to have a common topic. That's why it is often chosen. It does have 3 pillars. Look beyond profit, empower our people and also deliver on commitment. So people talk about these 3 pillars in the good company or sometimes talk about the foundational definition of what a good company is and how that can really relate to me or you. So it's really this kind of casual discussion about serious topics. In terms of the frequency, it happens on and off, but we try to feature various themes. So it is open to a discussion in a division or also across divisions, too.

[Interpreted] Thank you very much. Ms. Sato, what are some of the actual discussions you've heard.

[Interpreted] Yes, there is something that we did in our division, and that is about the new normal work style. One is really the work style that would make sense in this new normal. Of course, at our company, we have various systems that are becoming enriched as we speak to support various ways of working. So first of all, we sit out to understand what we have and then talked about what we can do. If there are any restrictions or limitations, we tried to rather talk about what we want to do, speak freely about what we can do. So this is something that we did. So we did a questionnaire. They said that rather than doing a questionnaire or having a one-on-one interview, I was pleased to be able to have a group discussion with everybody because people would be very open to speak in this group. And ideas about how they want to work came up one after another, and we had a great discussion in that sense. It was a very precious and significant time that we were able to spend.

[Interpreted] Yes. Thank you very much. So again, before the pandemic, our CEO, would do the town hall meetings around the globe. And I think during his post, he's been able to conduct a town hall with about half the members in the group. As again, mentioned in the presentation, we have the virtual world tour that Mr. Komiya is going to do. And so in this way, the CEO of himself is also very engaged in communicating with the employees directly. But really, what are we working for is really an important point because for a company to embrace this idea, it's not like all we need to do is slap it on a poster and keep it on the wall. We really need to have an active discussion about what this is. And you can see the results are shown in the score that we introduced from the culture and value survey.

[Interpreted] I have another question, if I may. So in terms of this culture and value survey, I would like to ask, I mean, what are some of the questions? What items are you trying to measure here? And also, do you have differences in the results in Japan and overseas? Probably, yes, I would assume. But yes, can you give us some color on this?

[Interpreted] Yes. So in terms of the culture and value survey, we have about 5 items in total. So first of all, we're looking at the purpose and engagement, questions about that. For example, what is the mission of our company. According to the mission of our company, I feel that my job is important. Or in the workplace, I'm always able to leverage my strength in the workplace on a daily basis. So this is how we ask about the purpose and engagement. And also, regarding look beyond profit, we ask questions like the words that my management and the executives at the company speak always exemplifies the vision of the company, et cetera. And then regarding empower our people, there's another question regarding is the company reacting quickly to the changing needs of the people. Correction, that's under deliver on commitments and then empower our people, we have -- do we have trust in the workplace, and do we have good relationships amongst the people. And then finally, we have group attachment. It is meaningful that my company belongs to the Tokio Marine Groups. So all in all, we have these 27 questions, not too many questions, I guess, 27. But the point is that, over time, we ask the same questions repetitively. And with this we can look at chronological data trends. It's not about the absolute figure really, it's -- what is important is has the number gone up or down versus the last time we conducted the survey. We have companies even outside of Japan. And yes, we do conduct this survey globally. And yes, it does reflect the national characteristics of the company. Overseas, people, when we ask them to rate between 1 and 5, they either say 1 or 5 in some cases, but Japanese people are a little bit moderate and they do not answer in extreme number. So they don't have 1 or 5. They have 3, 4, a lot of those 3s and 4s. So therefore, you can see that there will be a very big difference between the Japanese scores and the overseas scores. Therefore, there is no point really in comparing them.

[Interpreted] So I have another question, which I'd like to ask. Often, the investors ask this, and I would like to represent this because we get this frequently, especially in overseas right now, we see that in the macro economy, there's a lot of people moving around in the workforce, and there's less people working, more retirements, more quits. And so it seems like in America, it's very difficult to secure personnel. This is something that we hear in general. And so how is Tokio Marine? This is what we're often asked. So if you can talk about that. And also in terms of competition over people, over talent, I'm wondering what kind of steps we can take. Ms. Nabeshima, please.

[Interpreted] Yes, we do understand the current situation, and we have been influenced to a certain extent. But having said that, even under this great resonation circumstances, it's not like we have a fleet of people leaving. We believe that there will be manageable for us in terms of our performance and the operation, but we always feel that we need to improve our retention rate. In America, we have the health care industry and the retail industry where there's a lot of resignations going, I hear. But when it comes to insurance industry, the trend is not so stark. Again, it really is about the purpose. Penetrating the purpose throughout the organization is key. For example, the special paid holiday that we talked about in our presentation and also our initiatives regarding D&I. We want to become a company that is chosen and selected and we believe that we can do this. We can base up the salary, we can pay out onetime bonuses. Compensation is also something that we do partially. But relatively, it's more about the engagement and strengthening the purpose. Making sure that we provide a workplace that is selected by people.

[Interpreted] So we have a question from Mr. Niwa from Citigroup. Again, this is regarding the female top management ratio. If you look at this, especially in the insurance sector, I don't think that there's a lot of women here. First of all, is this perception correct? And why is it so? And is there a sign of change going forward? This is a big question for Mr. Niwa. And there's a follow-up second question, which is regarding inclusion. So I understand now that Tokio Marine Group is working on this proactively, but are there things that you cannot include? Are there any episodes in your -- in the difficulties that you're having? Ms. Nabeshima, please?

[Interpreted] Yes. In terms of the gender gap within the group, this is the most key initiative that we must work on in the group, we believe, especially the ratio of the managers in the organization. In overseas when it comes to the manager level, it is already over 50% in many places, especially in Asia and America and Europe, still the manager's class usually have about 50% women or more. But in Japan, in that sense, it reflects the overall society, the societal issues that we have, and it is much less than 50%. But overseas, yes, the manager level is basically equal 50-50. Now having said that, even in overseas, if you look at the upper rank above the managers, for example, the department heads and also the executive officers or the Board, yes, again, the figures go down. So in that sense, we believe that overall, as Tokio Marine Group, we need to make sure that the effort is taken throughout the group globally. So this is not something for a certain region. It's for the whole group to pursue. And yes, there's a very few top leaders that are women. It's something that is very -- we're very much late in the curve -- behind the curve in Japan when it comes to the top class female managers. We still don't even have the pool yet. But in the West, I guess, the pool is a little bit more rich, but still, there probably is room for improvement. And I guess there's overall conservatism overall and making it difficult for people to join. But again, compared to a decade or 2 ago, it is changing drastically.

[Interpreted] Yes. Thank you very much. So we are at the top of our time, but we still have a few more questions. So let us continue for a while. So next, from Jefferies, we have Mr. Ban who has given us this question. So in terms of the talent management for the overall group, what kind of database do you create? And how do you operate and manage it? Do you have some areas that you need expertise, for example, skills like actuaries or underwriting or asset management. And how do you secure diversity across these issues?

[Interpreted] Yes. So regarding talent management, as I have mentioned earlier, each group company needs to, first of all, look at the grade and see what kind of people are out there. This is the very first step we need to take. What kind of talents do we have? And then we -- to your question, we still do not have a group database because insurance could be a very local business. So each company is developing a system on its own. So in that sense, each system is not connected yet. And so we don't have a group total database yet. But in terms of talent management, the key is to make sure that we identify high potential employees because at the holdings level, we have a talent management meeting. And in this meeting, we would deliberate on that person, the person's talent and the career path and decide on a career shift. These are some of the initiatives that we have started recently. We don't have a huge data -- a huge pool of database yet, but we have these databases within each company in the group and they are managing it individually by company. And in terms of the expertise and the skills, yes, especially when it comes to actuary and asset management, yes, this is an area where we still have a lot of men when it comes to these expertise. And yes, the key really is to increase women here. Or maybe the diversity should not just be about women, but other types of diversity, too.

[Interpreted] So we have another question. Again, Mr. Muraki from SMBC Nikko Securities. So at the executive level, we understand that you make sure that you have the right people in the right place across the border and across entities as you explained. But when it comes to general managers and staff levels, what is the situation? And also, do you have group training across national borders and legal entities? And do you have exchanges between companies or mixed hiring or training. Ms. Nabeshima?

[Interpreted] Yes. Thank you very much. So yes, to this point, global personnel exchange is something that we do very actively, although we haven't been able to do any kind of exchange over the 2 years with the pandemic. But still, we are able to do some online and that has been significant. In terms of global talent strategy, one is we need to nurture global leaders; and two, we need to nurture expertise in each specialties like the underwriting and the asset management and the actuaries and also expanding the base is the key areas that we are focusing on. So in terms of expanding the base, this involves the younger members, inexperienced members. And so we would be providing some sort of communication, telling them about what insurance is, what kind of function it has as an infrastructure, what is the DNA of Tokio Marine, what does it mean to be a good company. And also being a global company, what does that mean. And what are other global companies doing. We provide opportunities for these younger members to learn about that, especially something that we started, it's a program called Tokio Marine 2100. It's a program that we have started a few years ago, and we've done this over 6 months. And it was for all employees around the globe connecting online. Yes, we do have a time difference. So we have the morning program, the night program, but this is how we connected the employees from all group members to have an exchange with each other. And obviously, it's not just exchanging. We had a discussion about how we pursue D&I, what is your digital strategy? And we have some training sessions to teach them about that as well and also have a discussion. And this way, our people can have more global perspectives. This is the effect that has been seen. It's a program that we've been continuing since last year. And this year. And also, before COVID, we would have people fly into Japan. We've also had the 3/11 Great East Japan Earthquake in 2011, and we talked about that and have the agencies come in and talk about what kind of difficulties they had and people from overseas were able to understand how significantly important insurance is. And they had -- we heard a lot of voices of appreciation regarding this issue. So this is how we train global people and make sure that we find talent that can lead the group company across the entities. This is something that we've been doing for a long time.

[Interpreted] Thank you very much. Do we have more questions? It seems like we do not have any more questions. So with this, we would like to close this Tokio Marine Insight series on Tokio Marine Group's D&I. Finally, we'd like to ask you to submit your comments and questions regarding this seminar that we've conducted today. And also give us your ideas about what kind of topics we should feature going forward under Tokio Marine Insights. Thank you all for participating despite your busy schedules. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]