Thank you. This is Sakurada of Sompo Holdings. On May 20th, we announced the results of FY 2021 and guidance for this fiscal year. In this meeting, I hope that you will confirm our progress of MTMP announced last year, as well as a roadmap to achieve next year's plan through constructive discussions. I will first explain the overall strategy of Sompo Group. Okumura, COO, will present business strategy. After the presentations, we will have Q&A. Please go to page three. As you may already know, we have renewed our executive team. Last September, Jim, who is sitting next to me, assumed CEO position of overseas insurance and reinsurance business. In April this year, Okumura became Group COO. Shirakawa, Domestic P&C Business CEO. Endo, Nursing Care and Seniors Business CEO.
We are aiming at becoming a solution provider beyond the insurance category, while keeping more than 130 years-old DNA to solve social issues. We will offer more valuable social contributions through our business activities. For that, we are proud that we have realized the best deployment of executive team. Each new appointment was, of course, based on the succession plan by the nomination committee chaired by an outside director. Please move on to page four. This is the outline of today's presentation. FY 2021 marked the second consecutive record high profit. The first year of Sompo Group's MTMP made a good start. In order to achieve our key strategies, namely scale and distribution, new customer value creation, the three priority initiatives, DX and RDP, gross investment and conglomerate premium generation, are stronger measures, which I will explain in depth later on.
It is a matter of course that SDGs and ESG are important to create new customer values. Driving force for these strategies are our employees. In the work style reform, we aim at creating a virtuous cycle of each employee's engagement and happiness linked to the improvement of corporate value. For shareholders, who are important stakeholders, we will grow profit and improve ROE to make shareholders' return more attractive. Please move on to page six. These are management numerical targets. In short, everything is on right track toward fiscal year 2023. Page seven. This is the roadmap for FY 2023, which is the last year of the current MTMP. In fiscal year 2021, transitory factors such as COVID pushed up profit level. Without those factors, our real performance is reflected in JPY 220 billion of adjusted consolidated profit.
Growth drivers from here to JPY 260 billion in FY 2022 and at least JPY 300 billion in FY 2023 are earnings structure reform of Domestic P&C Business and strong revenue increase of overseas Insurance and Reinsurance Business. Both of them are making steady progress. There is no blind spot in our plan execution. We can achieve our plan through organic growth. However, additional initiatives such as DX, digital transformation, growth investment, creation of conglomerate premium will further improve profit momentum, raising probability of us achieving the plan for FY 2023 and further buildup of results. I will come back on these initiatives later.
Page eight, scale expansion. Recently, premiums written showed a stronger growth of 6% of CAGR, driven by strong growth in overseas business. Page nine. This page illustrates another strategy, diversification. The left-hand side graph shows changes in adjusted consolidated profit, net premiums written, the group risk amount.
During this period, we steadily reduced risks, realized growth of overseas insurance business, and improved Group's business portfolio. We underwrote more risks, in particular of casualty and specialty line, diversifying business lines. Our effort is still halfway through, but our portfolio is changing in such a way to reduce uncertainty and stabilize the bottom line. Page 10, please. Our second basic strategy is new customer value creation. DX, digital transformation, is the core of growth strategy of each business, contributing to increased business value. DX-based initiatives for differentiation will improve quantity and quality of real data to construct RDP, Real Data Platform. We have been arguing that for the success of RDP, in addition to Sompo's uniqueness and differentiating factors to inhibit imitation, it is necessary, most of all, to create indispensable and urgently needed ecosystem for society.
In particular, the initiatives in nursing care and healthcare domain, where expanding Japanese Social Security cost is emerging as a serious social issue, is the fulcrum of that process. We are steadily progressing on necessary initiatives to transform ourselves into a platform through Nursing Care RDP. Please move on to page 11. This is the DX status of each business. Some economic impacts are shown in the yen figures. I think that not many companies show numerical values on the level we do. For example, underwriting, leveraging Palantir's capability, and improvement of business expenses through enhanced productivity are good examples of showing DX contributing steadily to the bottom line. I think it is important to accelerate these DX initiatives to increase earnings, as well as to deliver new values and services to the customers. I think the differentiation factor here is speed. Page 12.
This is business model for Nursing Care RDP. In Japan, there are 60,000 nursing care operators, with the combined market share of three largest ones being less than 5%. It is a very segmented market. For 70% of the operators, digitalization, such as data acquisition using sensors or operational systems, is not progressing. It is expected that in 2040, there will be shortfall of about 700,000 carers, there is demand-supply gap, and it is a very certain prediction. Even with the remaining 30% of the operators, it is indispensable to further advance data utilization. Nursing care is an essential work, which involves services provided only by human beings, such as offering meals. There are urgent needs in care facilities for support for such services as well.
For these issues, we are planning to provide a packaged solution, combining Nursing Care RDP, which is under development, with additional values, such as support for digitalization and business process. We believe that addressable market consists of about 7,000 companies and about 14,000 care facilities. We will show expected price and profitability at a later date, and we are making preparations for that. Page 13, please. Development status of Nursing Care RDP product. There are two phases in this development, and the first phase is for visible nursing care by integrating dispersed data. It is about a product to institutionalize accumulated know-how. For example, unexpected excretion takes up most of the time of carers, making it a long-standing issue in the nursing care industry. The product we develop in this phase is a solution for this particular issue.
The operation of our care facility has been dependent on experience and intuition of seasoned care workers. By visualizing and comparing the schedule of excretion care and the past care records, it becomes possible to optimize timings and frequency of care and to find opportunities for improvement. This is a product to directly contribute to quality of life of users and to productivity of facilities. We are currently in the demonstration phase with a partner company and planning to launch this product within FY 2022. In the second phase, we are developing an app for predictable nursing care. We use and analyze more than 500 data per user, including changes in weight and volume of meals for the total 30,000 users of our own care facilities. Using the app, care status can be visualized as scores to predict the care status, for example, in three months.
We have started pilot operations at two facilities of our own. Following a demonstration and verification by our partner company, we are planning to launch this product in FY 2023. Please move on to page 14. Nursing Care RDP initiatives and future prospects. While the first users of our products will be nursing care operators, we are also reviewing other markets and possibilities. For example, participate in demonstration by the central government, develop a home care model using nursing care, medical, and admin data of local governments, and realize sustainable nursing care system collaborating with central and local governments. This is an extremely important social issue, not only at home, but also abroad, and Sompo Group is committed to make utmost efforts for that goal. We will collaborate with peripheral businesses such as welfare equipment. For the future, we envision exporting our solution overseas.
We will expand the business in various markets and monetize as the size of business grows. We believe that this Nursing Care RDP development and business know-how can be applied to healthcare and mobility. As such, we will think about different ways of its deployment. Please move on to page 15. The third basic strategy is new work style. As we discussed last time, we believe that each employee pursuing his or her purpose, clearing the objectives of work style reform one by one, and raising the level of their engagement, will lead to the realization of Sompo's purpose, which in turn will increase corporate value. We are very certain of that. As shown in the middle, we have worked on various initiatives. We have executed necessary investment in infrastructure for remote operation of call center and systems investment for paperless operation.
With work style, with flexible choice of location being a new normal, some financial effects were generated, such as business expense reduction by several billions of yen, as shown on the right-hand side. Page 16. This is Sompo's approach to sustainable growth. Each of the ESG is being firmly addressed. Regarding the E, the environment, as a concrete measure of Sompo climate action, we have set a greenhouse gas reduction target for our investees from this fiscal year. We will also work to strengthen underwriting restrictions and lead to the transition to a carbon neutral society. We believe that our efforts to realize purpose will lead to future financial value, which we referred to as unrealized financial value.
Driven by my purpose, Sompo's purpose management is to increase unrealized financial value and enhance corporate value. We will present the progress of such efforts in an easy to understand manner to investors and other stakeholders. Please turn to page 17. It is about risk reduction. Cross shareholding has been steadily reduced as planned, and the reduction of domestic interest rate risk has been extremely successful. These risk reductions or capital release are the basis for improving capital efficiency, and we will ensure that they are implemented. Please see page 18. Next is about growth investment, an important option for directing internally raised capital through risk reduction. Though we continue to have a high appetite for growth investments and are examining possibilities on many fronts, we shall consider steady diversification efforts like bolt-on, digital investments for the future, and sometimes bold and large-scale investments.
We would like to be agile and make the best possible moves to allocate the capital as the occasion demands. The bottom row shows the status of the acquisition of the former Endurance. Well, as you know, Sompo International has become a growth driver for our company. For this fiscal year, at last JPY 100 billion level in profit from overseas insurance business is in scope. We have achieved a certain level of ROI on this acquisition, and we would like to continue to build on this successful deal going forward. Also, this week on the 24th, we decided to spin off and sell our Brazilian consumer business. Well, it has been announced already. We expect to see more benefits from our collaboration with SI in the specialty sector than ever before. This is a strategy to improve the profitability more efficient manner. Please see page 19.
It is about one of the important factors, which is shareholder return. As you recognize, we have been giving back well, steadily made the size of our dividend hike bigger. We intend to continue to increase dividends based on profit growth, also raise the payout ratio as well as improve profit stability. Well, of course, I myself see our stock price as still undervalued. We will work on share buybacks with attractive shareholder returns. Now let us move on to page 20.
Well, lastly from me, let me show you the track record of EPS. We believe that our efforts to improve capital efficiency and profitability have borne fruit, leading to steady EPS growth. We would like to make it even stronger and aim higher. Please stay tuned. This is all from me. Now I hand over to Okumura, COO and the new President. Here on, he will explain our business strategy.
Hello, I am Okumura, Group COO. I would like to explain our business strategy. First, page 22 shows the progress of KPIs in the domestic P&C business. Well, due to the effects of the key initiatives of earnings structure reform, adjusted profit for FY 2023 is expected to exceed JPY 150 billion. Details are supplemented on the following pages. Please turn to page 23. The first part of earnings structure reform is pricing optimization. In a nutshell, well, this is the measures taken by the entire market. Well, due in part to the recent increase in the number of and the severity of natural disasters, the aggravation of the fire insurance market has been quite clear, that in the entire industry, the rate optimization is underway.
Here in Japan, which is prone to natural disasters, in order to provide security and safety on the stable basis, we need to work on this. However, it is not a mere increase. We carefully need to explain the background of the revision to our customers. Then make appropriate proposals to ensure optimal coverage. Thanks in part to these careful responses, the E/I loss ratio for the fire insurance improved steadily, as you see. We want to make the progress on this initiative. Let us see page 24. Next is initiatives on underwriting. This underwriting as a word is used quite broadly, and here in one word, we are talking about the individual, especially the corporate policies with high loss, the initiatives that we are taking for them. That initiatives were DX related, as Sakurada-san mentioned.
That point is the technology of our strategic partner, Palantir, to re-engineer our business process. This is really a DX progress. The response to the customers with high loss, we've been making some progress, under the collaboration of Palantir, we are speeding up extracting those policies with high loss ratio. Well, in the beginning, we have focused upon the fire insurance with the large size policies. The technology of Foundry, of the Palantir technology, we were able to broaden our scope to the SMEs and also to other lines other than the fire insurance. With that extension of lines, and also for the longer term to look at, the number of policies in target have been expanding more. Extraction itself is by the use of the technology of Palantir.
Being able to do so at an early possibility will make it possible for our sales reps and the agent to come up with the optimal proposals, and also explain better for the customers for the rate hike, then that leads to the better profitability. Recently made the release about working together with Hitachi for the insurance policies using quantum computers. Well, sometimes there was a limitation of speeding up of the optimization of the corporate earthquake policy and the facultative reinsurance when we were working only manually. Well, the final portion is going to be done manually, by human intervention, but the portfolio will be able to be ceased at an earliest possibility. There will be a fusion of the manual handling as well as the DX or the technology.
Then on the next page, 25, we are talking about the improving profitability or productivity. We have worked upon the reforming and revisiting the efficiency, and so on, as a part of the productivity enhancement initiative. One example is AI utilization in response to accident, which is scheduled to start in November 2022. This is a part of DX. Where there is an accident, we make the analysis much further because, first of all, we can have the initial response, and then damage investigation to be handled separately. We will start by automating simple cases first, but by speedily delegating to machines, what can be done by machines, we will know that what needs to be done by humans, and those things that needs to be done by humans will be done by humans.
As a result, we aim not only to reduce workload, but also to improve the quality of customer service to provide. In here, we are making the steady progress in FY 2022 and FY 2023, we would like to see more effect to deliver from that. On page 26, we are talking about overseas insurance business. As was mentioned also, in a nutshell, it's going quite steadily. Especially the SI's growth premiums written. We are achieving the budget two years ahead of the schedule. Page 27. This shows SI Commercial's net premiums written. The agriculture insurance of Diversified, which was acquired, which began to be consolidated since FY 2021, and the higher than planned rate hikes have contributed significantly to the revenue growth. This has been speedily working upon, and by FY 2021, over 80% of the rate has been increased.
Under such an environment, the optimal resource allocation and also the volume of the holding to increase has expanded our business. As a result, loss ratio was improved. The loss ratio and expense ratio has helped the steady improvement. As a result, in FY 2021, FY 2022, and FY towards the year 2023, we think we'll be able to expect more. On page 28, we are talking about the expansion of the scale and also diversification. This section compares the composition of the portfolio by line of insurance in FY 2017, the first year of SI Commercial's consolidation, and in FY 2021, showing the tripling the size over the past four years. The catastrophe portfolio rate has been becoming smaller. You can see that there's been much more control for natural disaster risk and less volatile.
This is a result of pursuing for the efficiency and also the reduction in the loss ratios. Moving on to page 31. This is the progress on KPIs, the key KPIs in the domestic life insurance business. The biggest driver of life insurance is Insurhealth at Himawari Life, which is highly profitable. Insurhealth is the insurance and the healthcare. This is to back up the people who are willing to become more healthy. With the utilization of the digitals, we would like to meet the expectation of the customers who want to become more healthy. As a result, this is highly profitable. Also with the connection with the customers, we are meeting the needs of the customers, which will lead to the higher retention rate. As a result, it contributes to the corporate value enhancement.
Let's move on to the next page 32. On the left-hand side chart shows it's an Insurhealth profitability, and you see how high that is. On page 34 is about the nursing care and the seniors business. Sakurada-san already mentioned briefly. I would say with DX and RDP have been making progress. Even now, the occupancy rate is increasing. I, myself, for two years under this COVID environment, I was in overseas, not in Japan. I was watching Japan from overseas, and I see that nursing care business is having the sincere cares for the nursing care needs. For overseas, a lot of people actually, unfortunately, died, and after becoming infected, there are some support provided from the outside, especially from the headquarters, and we see that such a progress and initiative has also been taken by yourselves.
That situation has become better, we are making the investments faster at the earliest stage that we are starting to see that effect on the bottom line, I believe. Please move on to page 36. It's a summary. Within the current midterm plan, I think the keys are still the completion of earnings structure reform in the domestic P&C, the expansion of scale in overseas insurance business. Also, we should target at the realization of Sompo's purpose, that in the nursing care business, and also the other businesses, we need to expand the corporate value and also the value creation for the customers. Each business have been thinking about, and they're tackling with, the corporate value enhancement. Lastly, as a holding company, we need to deliver the conglomerate premium. Please turn to page 37.
Here, there is a description of the conglomerate premium, I'd like to talk about this. The executives, Sakurada-san, and myself, we have been discussing quite long for the roles and the responsibility of the holdings. We thought that there are mainly three roles for the Sompo Group. One is to formulate the group's mission and strategy and get them penetrate across the group. The second is to set appropriate targets and allocate management resources, the necessary resources, to operating companies. The three is to generate conglomerate premium or group synergies. The conglomerate premium is the responsibility of the execution of the Sompo Group, that under my own responsibility, I will ensure that we will make the progress. The first phase is the One Sompo project that we launched.
As a group, we want to enhance the brands, also educate people and grow people. Within some timeframe, we want to get the fruits. Especially this time, there are three domains to focus: investment, retention and cession, and global network, which is multinational business. The concept is, in a nutshell, the operating companies under the holdings are now working upon enhancing corporate value, and that led to the risk diversification and the scale expansion. Based on that, assuming that when we become one company to have one balance sheet, then the optimal portfolio should be thought. What kind of risk return we should pursue? The same thing should be discussed for the underwriting. By using the group balance sheet, what kind of holding will be the best for us to continue? With that, what kind of reinsurance strategy is going to be needed?
That needs to be pursued. The global network that will be starting from Japan. It's not only the company that will be starting from Japan, but starting from the U.S., starting from Europe, what kind of things we are going to be providing for the customers? What kind of networks we need to establish as a platform? We are going to do so in a certain timeframe. Within the discussion with a variety of stakeholders, maybe we get some feedback. Like, "Let's focus on the stability of the profitability." If that's the feedback, then if we are talking about the risk return of today, we think we'll be able to get the triple digit growth in the profitability to achieve in FY 2023. In each operating business, and the holdings, they'll become one entity, or one for the higher corporate value.
The profit target that we have set forth is going to be the one that we will aim into that time period. Thank you very much.
Thank you. Now, we would like to move on to Q&A session. From SMBC Nikko Securities, Muraki-san, please.
Muraki from SMBC Nikko. Thank you. First, domestic P&C and the improvement of the earnings. I'd need a clarification. On page 11, DX effect and some quantification mentioned here. Thank you for that. For the underwriting, less than JPY 10 billion, that's how I interpret. On page 24, the using Foundry of Palantir. Am I right to understand that this about JPY 10 billion is related to that, the Palantir initiative? Also page 22, 91.7% combined ratio. How probable, how likely that you realize this number? One year ago, you said 91.7%, and the other securities firms personnel said that it is too low. The fire insurance, the price optimization, that is much faster than your expectation. In one year, how are you looking at this 91.7%?
My second question, as Mr. Okumura said at the end, the conglomerate premium, it's a very interesting point of argument. Compared to global top players, as you already know, credit risk overseas is very small in your case. Also, the utilization of reinsurance within the group and as to the retention policy, I think there is some gap. Diversification effect and ROE improvement from that perspective, could you please elaborate more on the choices in front of you that you're reviewing? Recently, some insurance companies in different regions are trying to share IT platform or most of the platform. It's a very ambitious initiative. I am not certain yet whether it will be successful, but as to such initiative, I understand that you have been doing that to some extent. As to the sharing of the platform, is it something realistic that you would like to undertake? Thank you.
Giichi Shirakawa from CEO of Domestic P&C. The underwriting and the DX, I'd like to cover DX in a wide sense. The last year of MTMP, about JPY 15 billion, the impact on the bottom line, that's what we are aiming at. The breakdown is as follows. From underwriting initiatives, about JPY 7 billion, and with the other personnel cost reduction based on DX, JPY 8 billion impact. As to underwriting JPY 7 billion impact, as Mr. Okumura said, the fire insurance, in other words, high loss, the other policies, and revisit those policies, not only fire, but also the other casualty and liability. We will expand this underwriting effort to those lines as well, including that JPY 7 billion impact.
Personnel cost reduction, as Mr. Okumura said, the claims section and the repair done checked by AI, by the repetition of such initiatives, JPY 8 billion impact is expected. Your next question about the combined ratio. On the longer run as to automobile insurance, we expect that the other market will improve gradually. Fire insurance with the other price rate hike, the other core driver being the rate improvement, the combined ratio is expected to improve. More specifically, for FY 2021, 93.5% and 93.7% 2022. The same level. There's the absence of the other changes in the automobile accident due to the other COVID. For fiscal year 2023, we aim at 91.7%. The gap with the number of 2022 is two points. I would like to explain about this gap of two points.
First of all, there's the other depreciation and amortization of our core system, Mirai-Kakushin, will be compensated by the other earnings structure improvement. The breakdown of two points is one point coming from fire insurance and 0.5 points from the decreased automobile accident ratio, and the rest is coming from the top line increase of the other casualty and other business lines. The market share improvement, we keep one. With that thrust, we will aim at increasing the top line and growth. Thank you.
Muraki-san, I would like to answer your question about the conglomerate premium. Compared to global peer, we are not taking so much credit risk. We are rather on a conservative side. You are right. As a group, rather than taking credit risks, we wanted to strengthen underwriting, which is our strength and take more risks there.
When you look at overseas business, we take underwriting risks and expand underwriting gains. About reinsurance, the utilization of reinsurance within the group, we are thinking about it, but it is probably the next stage. Without making new platform within the group, how much risks should be taken where? The risks taken by each business are not really optimal. If we pursue the best scenario for the group, how we are going to make adjust it? The small working group is now working on that. Jim Shea, sitting next to me, is very deeply involved in that. If necessary, he can make also some comments later.
Conglomerate premium, for the whole group, we look at the duration for the whole group, and we think about the best asset allocation and the group optimal insurance and reinsurance will also be revisited. IT platform, I'm not sure if I'm the best person to answer that question, but based on my experience, it seems very difficult, especially when we have customer business overseas. The systems required, the regulations are different from country to country. Whether we can share the basic system, in my experience, there are more cases of failures than successes. As to DX, it could be effective when we share for the whole group, but more prudent on the IT systems sharing. Jim, if you have any additional comments for the reinsurance platform?
As for the reinsurance platform, I think it is a real opportunity for us, not only in how do we maximize the net retention based upon group appetite, but how do we have a consistent appetite across all geographies so our customers see One Sompo appetite factoring in local statutory entities and net retentions. The other benefit I see on the reinsurance is how we manage our reinsurance partners and how we manage our distribution partners on a global basis. We are seen in the market as one organization and not two. I think that is a tremendous opportunity for the group over the medium to long term. In terms of IT platforms, I think we should be as common as possible, but as local and distinct as necessary.
Particularly when we look at reinsurance or we look at multinational customers, the platform in which we service and support those customers is the same, we should be looking to be as consistent as possible across all geographies. Thank you.
Thank you for your answers.
Thank you, Muraki-san. Let's move on to Mitsubishi UFJ Morgan Stanley, Tsujino-san. Tsujino-san, you can ask your questions.
Okay, thank you very much. I have two questions. The first question is for Sompo International. The top line growth is remarkable. Well, the rate increase effect was probably quite big for the top line growth. In the future, maybe the rate hike might continue. However, the rate up speed might slow down. With the rate increase, you have been acquiring from the new lines as well. So how the new policies have been acquired in which domains in the past? If you could briefly talk about that would be helpful. Going forward, do you think that is sustainable, the acquisition of each line of businesses from many domains?
If you could give some color on that, I appreciate it very much because some people said, "Okay, liability is increasing," but the casualty does include liability. From our standpoint, that covers so much a broader topic, so I really want to know the color on that. The second question is regarding the profit improvement coming from the rate increase. Well, especially when we are dealing with the large-sized customers, the large-sized corporate, how is it making progress for the rate increase? You were talking about that will be done in conjunction with the underwriting, but probably in the different aspects, when we think about the rate hike for the large-sized corporate customers, is the environment allow you to do that much easier? If you could give some examples from the past, I would appreciate it very much as well. Tsujino-san, thank you very much.
The first question is about SI, and the second one is about domestic business. That was my understanding. Is that correct? The first question regarding SI. I'd like to talk about the past, and also, I'd like to hand over to Jim for the future. As you mentioned, the rate increase has been steadily making progress, but now we are starting to see some slowdown. In fiscal 2022, in the first quarter, it's going to probably go beyond that loss cost, going to the double digits. Compared to the FY 2020, it's slowing down. In that environment, in the past, for example, the bolt-on M&A for expanding surety, and the last year we had AgriSompo expansion, and also aviation company acquisition.
Through them, we have been expanding the lines and also the geography. As a result, in a nutshell, not only property, but casualty had increased. That was an explanation. Which kind of a geography? We think we can give you much more in details. Also, right before the acquisition of Endurance, GRS was launched. That was for the insurance for the U.S. companies.
That's the property and casualty directly reaching out to the customers. That was the business model. In the last five years, we have increased by about JPY 100 billion in that business course. For the reinsurance as well, those are renewal, and also the new acquisitions of the policies. We have increased, just like the holding or the insurance businesses, by expanding the businesses of the European side of the businesses, we have expanded the business in that course. We have Jim coming from Bermuda. I think I'd like Jim to answer that question as well for the future.
The future, I do believe there's an opportunity for us to continue the expansion of the business. When you mentioned rate increases and top line growth, the market has plenty of top line growth available to all players. It's the bottom line impact that we need to make sure we are focused on. I think while rate increase is easy to track, what has been more important in terms of the contribution to profitability has been risk selection and the terms and conditions that we're able to write into the policy forms. Those, as a combination with the rate, have helped to drive the profitability. As Okumura-san said, we've continued to invest in new areas, and the growth that you see over the past in 2021 reflected strong commodity prices in the AgriSompo business, as well as the annualization of the acquisition.
When I look going forward, I see opportunities in geographical expansion into places or in segments within the United States, expanding into the middle market, expanding into new geographies. In continental Europe, our focus has been primarily on the reinsurance side, and our business is primarily based in the U.K., and we are looking to expand and have Sompo represented across the continent. The opportunity for us to continue to see growth despite the slowdown in rate, I think is there for a number of years to come. The focus will remain on the bottom line, and that is a combination of rate, risk selection, and terms and conditions.
Your second question about the domestic P&C. The question was, you were referring to the large corporate customers, it's not only for the large sized customers, I think the idea that we have is the initiative to take for the SMEs as well. Especially for SMEs, the data regarding one policy is limited, the number or the volume of policies of SMEs are quite big. In FY 2021, about 1 million policies of the SMEs was analyzed as a DX data. It's not a single year policies, but about the last 10 years that we have gone through as a data analysis for 1 million policies. Talking about our relation with the large corporate customers, the past data is available, of course. In case of the large corporate, the volume of data per policy is also quite big.
That volume and also the result from the past all need to be analyzed. In the past, what we used to do is that we did everything manually with human intervention, that deciding the policy for one policy was time-consuming. Now that the Foundry is available to use, as I mentioned earlier, even if we are dealing with 1 million policies over the past 10 years, we'll be able to get the conclusion within a few hours. Compared to what we used to do in the past, we are going through a big transformation. What kind of data trend extraction was possible was really dealt with the DX. If we are dealing with that large sized corporate, as Okumura-san was talking about, the quantum computing analysis will be used, and the scheme for the facultative cession will be also reviewed.
We think we'll be able to deliver fruit. The initiatives for the large-sized companies, making a proposition and changes the rate are more like the things into the future. Is that correct? When we talk about the earning structure reform, we have started that since FY 2019. Actually, we have asked the large companies to review their policies and also the rates, and that has made the progress. The fruit have already been born until FY 2021. If we're going to further develop, the new technology needs to be used, as I mentioned earlier, in the reinsurance domain, for example. Together with that, we shall make a further effort to get the profitability. We have already harvested some results.
Okay. Thank you very much. Tsujino-san, thank you. Next, Watanabe-san from Daiwa Securities.
Watanabe from Daiwa Securities. I have two questions. On page 19, shareholders' return as to the increase in the payout of dividend by JPY 50 is shown for FY 2023. How probable is it, and how about FY 2024 and beyond? Any comments on that? As to additional, the benefit payout, JPY 50 billion of the excess earnings, and there will be some buybacks. There were some buybacks because of that. What is your current understanding of the excess earnings? As to underwriting ratio, because with the COVID and the war, and risks are emerging, as Sakurada-san said, we are living in the age of VUCA. You have been containing losses, partly because of the good regional mix. Could you please talk about why you're so strong in containing the risks?
Here's Hamada, I'm CFO. As to shareholders' return, I would like to take up the question. FY 2022, we accelerated the increase of the dividend payout by JPY 50. The adjusted profit will be flattish from FY 2021. Actually, we'd like to increase it. When we developed the plan for 2022, the number was JPY 250 billion or so, and in one year or so, we can add on JPY 110 billion on that. That's why we increased dividend by JPY 50. We cannot say anything for sure for the future, but when we decide on the JPY 50, we thought that we can increase it by another JPY 50 for FY 2023, and we could say that from our simulation. We are growing very steadily. The JPY 50 is likely to be maintained for 2023.
For 2024 and onward, we cannot make any commitments here, but not payout ratio, but the total, the shareholders' return ratio, is the key that we are looking at. Our shares are still undervalued, and there is some economic reasoning for the share buyback to some extent, but the share prices are rising. When that happens, we would like to focus more on the dividend payout. Please count on us. As to excess capital, FY 2021 is gone, and we had some upside, bigger than expected. The additional return was on the table at the end of the year, but looking at the current capital status, of course, profit has been built up. For example, Sompo International growth drove the risk volume to some extent, and we need to look at financial markets.
FY 2022, the JPY 600 billion, the growth investment, and based on that, how much capital we need. Those numbers that we looked at one year ago remain unchanged, more or less. This time, we do not have any additional shareholders' return. As to the second question, the underwriting disciplines. The team is an expert for business, but on our side, I worked for SI for two years or so. In short, SI commercial is an underwriting company. I think it is appropriate to say that. As Jim said, it's not about rates, but risk selection and terms and conditions are reviewed. You operate only in the area of your strengths. It's very disciplined, and if you go beyond that, you need ammunition, like people or the DX or digital technology. If not, you do not go beyond that line.
Compared to other companies, you said, it's rather difficult to compare with other companies, but it was the right timing within the pandemic. Some peers struggled with the capitalization, and we had Endurance in the group, which provided the capital buffer. When the market became tight, we could make a step to expand our business. Jim, any additional comments on underwriting?
I think you hit the key elements. I believe it is certainty of contract, and we saw many of our peers suffered from market or manuscript contract wordings, particularly in continental Europe. I also believe it was driven by a risk selection and segment selection. If you look at many of the losses in the industry, a lot came from the consumer and SME segment in continental Europe, of which we are not a large player. That combination of strong risk selection and contract wordings, the segments that we operate in, and I believe a strong and conservative approach to the acquisition of reinsurance contributed to the positive results in everything that we've experienced and continue to experience, and I think it will hold well for us going forward and to maintain that position in the future.
Thank you. That's very clear.
The next is Mizuho Securities, Sato-san, please.
Thank you very much. This is Sato of Mizuho Securities. Two questions from me. The first one is about the growth investment. For the current midterm plan, you are setting JPY 600 billion. One question is about the outlook for that JPY 600 billion. You showed the progress, which was JPY 75 billion. For the fiscal year that ended, there was not a large one, I think. But in your case, when you were setting up the level of the investment, at least you're disclosing that, and also for the probability of hitting that in the final year. You were talking about the organic growth in the JPY 30 billion, or the inorganic growth. The probability of using that, of course, we should not set the figure, first of all.
When we look at the valuation of today, how hard that is or how difficult that is, if you could give some color on that. The second is about you did not talk about the mobility lines. Including the auto insurance, the mobility aside, if you have any outlook for that mobility-related businesses. I'm not talking about if it comes to the phase five of the development, what is going to happen. For example, the CEO of Tesla was talking about now we're talking about insurance or the Tesla platform.
They are probably going to see some timeframe, sometime in the foreseeable future for the 100% auto-driving. You're talking about Tier IV in the region, that you have the business alliance, the partnership that you've concluded last year. There will be some opportunities or the threat as well for you for the mobility side or auto side as well. That's my second question.
Sato-san, thank you very much for your questions. First of all, it's about the growth investment. Let me briefly answer. As we described on year one, it was a JPY 75 billion level of the capital used. We have more headroom. Every quarter, the top of the executives are confirming the progress. In April, we had the meeting and overseas businesses, of course, not to mention, but the Nursing Care Digital Business and the P&C in domestic. We have shared some opinions about all the plans and projects. They need to have some more capital. As Sato-san said, we should not be really having all the reckless objectives. We have to have discipline.
For the growth investments, it's not that we have nowhere to make an investment or it's not the case. Rather, what's quite difficult for me to look at is that like an insurance M&A or there are some investment that we can measure ROI now, and also there are some investments that we will seek for the future return. There are quite different types of what kind of return we will expect for. We need to look at that much more in details in a balancing act. As Hamada-san mentioned, I'd like to add some, especially for overseas.
We do have some prospective deals, because of the balance with the other possible deals and also the disciplines, we have been having the discussion with the overseas business owner that there were much more headroom left that we go into some regions, especially the investment in the human talents. Somewhere between bolt-on, we could probably capture the team to seize the opportunities for growth. We're thinking about the utilization of the capital in that regard. Whichever the case is, the appetite for growth is quite strong from each business owner. In the meantime, discipline is very important. We need to get the balance to benefit from the investment for the corporate value. Sato-san, your second question is about the mobility. It's not about the auto insurance, you are talking about the mobility business in the future. Is that your question?
Yes. My question is about the future. Car maker side are willing to maybe disrupt the existing auto insurance. In the meantime, your side is like a Tier IV or the auto insurance telematics area, have been the area that you've been working upon for alliance or the partnership. I'm not really talking about the overall picture, but I'm interested in knowing how you want to play out in that field. Okay. Maybe Shirakawa-san and Narasaki-san are the best to answer.
Okay. I'd like to answer, first of all. As Sato-san mentioned, well, if we are going to work upon for the case or months, maybe the size of the accident or the case of the accidents will be changing, and the relation with the customers may change as well. Even if the business model changes, we need to get the preparedness to respond to that immediately.
The innovation of the core system or the Tier IV and the mobility area investment will be quite necessary, and we are preparing for that. For Tier IV, it's not only the auto-driving function, but the large volume of the data is the scheme that we are able to enjoy. The real data will be used, and for us to reform the new business model. Narasaki-san, anything to add?
Well, this is Narasaki. Just to build on what Shirakawa-san mentioned, I would say, what we're going to do for the mobility field. Well, in your question you mentioned that car makers are probably going to disrupt the insurance side, the existing insurance. I would rather say that car makers are probably having something that is not fully utilized, but we want to fully utilize those that are not in use now. I mean, I'm talking about data. Like behavior of the drivers or the traffic conditions, or the car parts and composite value in terms of the market price. Those data are not necessarily used fully. The mobility industry or the car-making industries probably have more goldmine. By the utilization of Palantir, we are trying to work on that.
One of the other form of business is with Wejo. This week, we went to their headquarters of Wejo to have the meetings, and they are very aggressive. In the global automobile industry, mobile industry, the company like us and Wejo could work on various other things. Shirakawa-san just mentioned about data utilization, but that will be fed back to the auto-driving system. In the future, the auto driving is going to be probably done on the hybrid style for the time being.
The hybrid meaning that the people will drive it, and also the auto-driving is going to exchange informations between the two to formulate the mobility into the future. We want to be playing the role in the center of that. That's how we want to develop the business.
Okay. Thank you very much.
Thank you, Sato-san. Sasaki-san, please, from the Bank of America Securities.
Here is Sasaki of Bank of America Securities. I need a clarification for the contents of the presentation. The nursing care business, new product launch is coming up, you said. To use this product, expenses is embedded in the nursing care mechanism or not? As to the domestic P&C business, the utilization of quantum computing. I think probably you talked about earthquake insurance for the corporate clients. Do you think that it is something to lead you to taking up earthquake risks in Japan?
Here is Endo, the CEO of Nursing Care and Senior Business. As to RDP and nursing care, could you please repeat that question?
For RDP, you are launching a product for RDP. I understand. When the operator uses it, is it covered by the nursing care insurance?
Understood. As Mr. Sakurada said, the nursing care industry in Japan is undergoing the age of transformation. In 2000, the nursing care insurance started, only 22 years passed. It has always been the manual work by the carers. It is just the extension of the family carers. About 700,000 will be in shortfall according to the METI. On December 20th, the Cabinet Office in its committee, they talked about the deregulation of the nursing care. I was there in the meeting with the introduction of digital technology to raise the labor productivity.
At residential care, there should be one carer for three users, and it is not sustainable. One versus three, this rule should be deregulated, that we made that proposition. From June this year, they are promoted by the METI, from the Ministry of Health, Labour and Welfare rather, the model operation will start and Sompo Care that will be there will participate in that initiative.
That how the collaboration or harmonization between the digital and the humans will be achieved, and we have six months to show it. Digital technology introduction is one of the keywords. Not only that, the Nursing Care RDP, why is it necessary? For Sompo Care, the mission is as follows. There are about 80,000 users of Sompo Care. Every day, they provide data recorded, how they live and the status of cognition and meals. The high volume of data is provided, and we use the Foundry of Palantir to analyze the data to come up with some apps. Finally, the government and the Ministry of Health, Labour and Welfare understand the same way as we do, and that by 2025, there will be some revision coming up for nursing care. The specifics are yet to be worked out. 60,000 data operators, they should operate in a sustainable manner.
The government is finally giving some thought to that. I would like to add the following as well. For Sompo Care, the nursing carers and care managers, and the other staff have been using their experience to come up with plan for cares. If you look at page 12, this diagram on this page. In the middle, the predictable nursing care. The health status, cognition, the behavioral ADL, the app. In three months, for example, that app is almost available, completed. Using that for 60,000 other operators, we are going to sell that product, and there are 15 different apps are being developed. We are now at the point of change for the industry, and we would like to play an important role there, and that is our ambition. 60,000 operators.
We can help them to build a digital platform. Nursing Care RDP and base applications based on that RDP can be provided. Not only that. What will be the specific plan for a certain user? Such solution can be provided. It is going to be the full package of solutions. We are going to talk more about specifics in the IR meeting in November. Please count on us. Thank you. Thank you for the question.
The next is
This is Shirakawa. The DX using quantum computing. As you said, the retention level of the earthquake insurance will be optimized to reduce reinsurance cost. That is becoming visible. Your understanding is right. At the same time, this technology, combined with Palantir's technology, to be applied to the natural disasters or to the overall portfolio of Sompo. That's what we are doing in a parallel manner.
Sasaki-san, maybe you are on mute.
Thank you. About the Japanese earthquake risks, you are going to increase the retention level. It's not increasing retention level. Optimize it. Optimize the facultative reinsurance. That's what we are aiming at. We are not saying that we are going to increase the retained volume of earthquakes. We would like to create the optimal combination of retention level and reinsurance. Thank you. One more thing. JPY 600 billion for growth investment. Under the current plan, if there is the remainder of the JPY 600 billion, how are you going to use this remaining capital?
Let me take up that question. We have not made any decision yet. We are doing some exercises only. If we do not use up JPY 600 billion completely, probably from the end of this fiscal year, we are going to start the process to develop the other 2024 and onwards new midterm plan. Organic growth to FY 2023, can we achieve the other goals? What about financial soundness at a certain point? The other investment appetite for the next midterm plan, we are going to have such discussions. In one year, in May, the IR meeting, we might be more clearer about those points. I think as follows. What amount are we talking about? At least what is most important is ROE, at least 10%, the capital level, which allows us to keep that level.
According to the current simulation, the JPY 300 billion adjusted profit achieved by organic, the order of dozens of billions of yen should be reversed to reach ROE 10%. The ROE 10%, it's satisfactory. Every year we accumulate the capital and what is the pace of the build up of profit and what is the level of investment, and we are going to look at all of these things, and we are going to decide on how much the reversal should be there. That's the understanding right now.
Thank you. Understood.
Thank you, Sasaki-san. Now Majima-san from Tokai Tokyo Securities, please.
This is Majima speaking. You were talking about purpose, so I have a question about purpose. You have been talking about the theme park to provide the security, safety, and the wellbeing. Among the investors and analysts, I think that theme concept has been penetrating more. In order to get that across in the normal community, then you have to talk about something that goes aligned with the social contribution, which is the image of the nursing care. Probably the image would be like Sompo's name would be the image of the nursing care, but the other social contribution may not be reminded by the other people. Aren't you worried about that because of the too strong image about that side of the purpose? Also, are there any alignment between my purpose and the company's purpose? Those are two questions.
Thank you very much. I, Sakurada is going to answer that question. Well, we actually want to be really famous about that social contribution. I would think the first driver has to be really emphasized because the nursing care business does exist anywhere in the world. In Japan, the government is now taking initiative with some budget and the resources. In the U.S., perfectly catered toward the private sector, meaning the public companies taking care of it, not the government.
Whichever the case is, towards the secure and the safe community and the society, not only in the advanced countries, we think the nursing care is going to be much more important. Well, Japan, of course, without going seeing, and also the U.S. Those people who are working on the nursing care in the U.S. are the currently working people. They are working and also doing the nursing care. Or maybe the same for China as well.
When we are talking about the promotion of the theme park of the safety, security, and the welfare in the community, your question is that whether the Sompo's name is going to be highly renowned for the nursing care. We as a Sompo Group, we shall make up the image in the society and then prove what we can do in what we can do. Majima-san's question, I do understand your concern, and I understand why you asked that question. Once we deliver that and become the company, then we think that will drive us to become the business with the P&C business and other insurance and other businesses. Well, and also as we heard from other speakers, we were talking about the life insurance P&C business and overseas business. Well, we get two things from all business units.
One is, of course, the profit or cash. The other is data. Those two are going to be an important resource, increasingly important into the future. By utilizing those resources, we shall do the troubleshooting for the society. Sompo is no longer an insurance company, but it's a company founded based upon the insurance business, but the company to make a contribution to solve the social issues. I think the image that you have is going to be quite important, and I want people to have that image about our company. To do so, all the staff or the employment has to have a clear understanding of why they are working. We want them to revisit that. That's the reason why we started Town Hall, and we've conducted seven times already. The first time was starting in September.
We are also planning to have some more from now on. Well, by using the web remote system, we've been having the direct contact with more than 10,000 workers. Now, I joined the company about 40 years ago, and unlike that time, when I joined the company, my life and the company's life was almost equal, but it's no longer the case, no longer the scenario. When we talk about the sustainable company, that value that we had in the past cannot be consistent with the value for today. First of all, there is a life of each individual workers, and they have something that they want to aim at, the purpose that they work for. In order to realize their purpose, there is a Sompo Group. That is a concept that we want to communicate.
At least the people who join our company, their life purpose is that they want to make themselves happy, but not only that, they want to make happy the people around them, including their families. That's the big and the strong purpose that our people have. If they go closer and get crossed with the company's purpose, then that will make our company as a theme park for security, safety, and wellbeing. I think that will be the largest driver and the strongest driver. I have to say this for investors, that the largest stakeholder is the employees. With that, we think we can make the value proposition and the return to shareholders. Thank you very much for your question.
Thank you very much.
Majima-san, thank you. Next, Niwa-san from Citigroup Securities.
Here is Niwa from Citi Securities. Can you hear me? Yes, we can hear you. Two questions. The global corporate business and the other equity investment. First, on page 37, multinational business expansion. It's very interesting. My question is as follows. The current position and the expansion going forward, what kind of metrics should we look at? I imagine that probably multinational companies, international programs by global peers or captive insurance and its number, and the number of risk engineers or the global wallet share and so on to see what kind of metrics are important to understand your positioning and what is the timeline to reach a certain goal? Could you please make some comments on that? And if there is any missing part there, but is it? You talked about SMEs functions required.
How much investment at what timeline is in your mind? Another question is on page 41, equity investment. Strategically holding stocks are being reduced, I understand that, and your interest remains the same. There are some discussions about lead shareholders in Japan. I think there's high expectation for financial institutions. Do you think that the insurance companies are different from that? Or the characteristics of the liability of insurance company, are we going to increase your equity, the investment? What is your thought on equity exposure? Any changes from the past? Could you please elaborate on that point? Thank you.
Niwa-san, thank you. As to global companies and multinational, I'd like to talk about the outline. When it comes to global companies, Jim has been leading the team. I'd like him to make some comments as well. As you know, in our group, we are dealing with Japanese companies. When those Japanese companies operate overseas, we support them. It involved manual work, a lot of it. In expanding overseas business, not only Japanese companies, but also German or the U.S. customers became our customers as well.
Using our network in Japan and the overseas network, there are some gaps or overlapping parts that we are revisiting that gap. At this moment, we do not have any specific KPIs. The timeline and KPIs will be determined. The number of customers, at least, or the gross written premium, or the level of satisfaction on the part of the customers, will be candidates for our KPIs. Jim, any comments, please?
I think it is very important for any global insurance company to be able to support its customers as they operate outside of their home country. As the insurance regulation becomes more complicated, and as companies become more global, it is an opportunity for us to be able to support not just Japanese multinational companies, but all companies and all customers, small, medium, and large. The universe of companies that operate in this space is much smaller. The opportunity of investing in digital platforms to help us provide a support and service that can leapfrog some of the technology that exists today will help position us well for the future.
I think, as Okumura-san said, there will be many KPIs that we can look at, but I think ultimately it is the bottom line and the combined ratio that we look to do this, and to do this in a profitable way.
As to strategically held shares and our policy, the conclusion is as follows. There is no change in our thinking. The JPY 150 billion reduction in the current plan, that is our aim. Probably the growth investment, depending on those deals, we can speed up the process. On the fair value basis, the market value basis, we have been reducing the holding of strategically held shares. In the interest rate environment, we have slowed down the pace from this midterm plan period. Generally speaking, it is strategically held shares. If it is no strategic held, the equity holding would not be a problem. Basically, in our ALM, we would like to reduce volatility. There is no change in our basic policy to reduce strategically held shares.
Thank you.
Thank you, Niwa-san. Sakamaki-san from Nomura Securities, please.
This is Sakamaki of Nomura Securities. One question, please, because of the time constraint. On page 18, optimized portfolio is one question I have. The consumer of the Brazil company, you make the decision of spinning that off and then sell. What kind of discussion took place internally to come to that decision? Can we expect to have the selling off of those disposition of the businesses which is still making a profit? I just wanted to know the concept and the thoughts from the management team. Thank you.
Thank you very much, Sakamaki-san. The consumer business in Brazil was decided to be sold off, this discussion actually, when I was in charge of the corporate planning, we have had the discussion with Sakurada-san. For the future, we could probably do, if we can get the higher corporate value, then we could continue the business. If not, then we should just think about the proposal. The pulling off from this Brazilian consumer business is something that I have to really
I personally had to be hesitant. However, thinking about the market environment and our positioning and the capability, were all considered. The conclusion was that it was very hard to take back the advantage for ourselves. The management meeting at the holding and also the Brazilian consumer business supporting sites, the Sompo International executive members, we all got into the discussion, and we discussed thoroughly.
Then we, of course, had discussed with Jim, flew over to Brazil, had the repeated discussion, and we gained the understanding of the local executives. At the time, Tajiri-san, who was in Turkey at the time, had come over to Brazil as well. We, as one team, had come up to this conclusion and completed the deal. Well, I myself would say that for the future, we shall pursue the corporate value enhancement. We need to understand the external environment and clarify what we want to attain, we should work on the core competency to pursue. Jim, do you want to add something?
There was a very thorough review of the portfolio and the business, not only our business in Brazil, but the Brazilian marketplace. Unlike a commercial business, in a consumer business, in order to be relevant in a particular market, you need to have a certain level of scale. You need to be positioned in the top three to five companies and be able to drive change in that marketplace. We felt that this was the best course of action for us, given the size that we were in Brazil and the overall socioeconomic situation in that marketplace, not only today, but as in the foreseeable future.
Sakamaki-san, is that okay?
Yes. Thank you very much.
Okay, thank you very much. We've already passed the time, but lastly, through the chat, Marusan Shoken, Harada-san, has one question who is covering to us, I'd like to read out his question. Sompo International's agricultural insurance. I'd like to know the current situation of that crop business, and also the strategy for the expansion of that crop business. Jim, can you probably take this question?
Current situation is that we have fully integrated the acquisition into Sompo International. We have integrated with a leader, Mr. Bob Haney, who is part of the leadership and executive team within Sompo International. We continue to be a market leader in the U.S. We look to expand, where it makes sense, either through acquisition or through our reinsurance vehicles, and expand that business outside of the U.S. We continue to look at different opportunities, and we will continue to keep that as a core strategy for our business in the foreseeable future.
Thank you very much. With that, now I would like to wrap up today's session. If there's any additional questions, please contact our IR team. Thank you very much for joining this session today.