Good evening, everyone, and hello. My name is Komiya. Thank you for your participation to this meeting despite your busy schedules. I also wanted to thank you for your continuous interest and support towards Tokio Marine Group. To kick off this telephone conference tonight, I would like to present financial earnings for the second quarter and messages from the management based on the second quarter earnings. If you have the material in front of you, please turn to page 3. There are mainly three points I would like to convey to you today. First point is about the underlying performance of Tokio Marine's business. Although recently we have been impacted by COVID-19 and natural catastrophes, excluding these transient one-off factors, on underlying basis, performance continues to be strong, led by international business.
In fact, normalized profit forecast for this year is revised upwards by JPY 10 billion to JPY 560 billion. Second point is about transient effects that we are impacted by recently. We are estimating this transient effect for this year, for fiscal 2022, to be JPY -160 billion, out of which COVID-related is JPY -130 billion. Most of this is coming from Taiwan business, in which we have revised COVID-related expected loss to be JPY 91 billion based on the enlarged infectious state in Taiwan. As for Hurricane Ian, this is expected to bring the second-largest historical loss in the industry. Its impact to us is expected to be not so big as we center our business in specialty line of business, and our loss is expected to sit within the natural catastrophe budget for international business.
Third point is about shareholder return. I have been saying to investors that profit growth and DPS growth should come hand in hand, and also that share repurchase will be done with discipline. While looking at the status quo of business, although there are some impacts of transient effect, our underlying performance is indeed strong. Based on that, we are keeping the DPS for fiscal 2022 to be JPY 100, as we had announced at the beginning of the year, and that means keeping the DPS growth estimate of 18%. As for share repurchase, since management recognizes the current level of capital to be ample, we have decided to keep the same amount of JPY 100 billion to be allocated for this year's share repurchase program. That means we will be spending the remaining JPY 50 billion. That decision was made in board meeting today.
I would like to explain these points in more detail, so please turn to page 4. First, on top line. Financial performance in second quarter was led by international business and saw year-on-year 18.7% growth with net premiums written and year-on-year 13% growth in life insurance premiums. Excluding the factor of effects, they still achieved growth by 10.4% and 3.1% respectively, which are growth in pace above the levels we showed in the projections announced in May. This tells our underlying performance to be strong. Full year projections were revised upwards based on recent briskness in underlying performance. On year-on-year excluding effect basis, we are projecting net premiums written growth by 9.1% and life insurance premium growth by 2.8%. Next, I would like to explain about our adjusted net income.
Please turn to page 5. Uh, there is no doubt that underlying performance continues to be strong, as I have been explaining. But I would like to look into the details for some components making up the second quarter adjusted net income. Starting with TMNF. TMNF received multiple impacts of one-off events as follows. One, faster than expected spending of natural catastrophe budget triggered by events such as hail damage in June and typhoons. The second is the impact of flood in South Africa. The third is the increase of COVID- related payments due to spread of infection. And fourth, increase in provision for foreign currency denominated claims reserve due to yen depreciation. These are one-off factors which impacted earnings of TMNF, but excluding these factors, progress rate of profit versus original projection was fifty-four point eight percent, showing healthy underlying performance. Please turn to page 6.
As for TMNL.
Life operation was also under the impact of one-off factors such as COVID-related loss and losses on derivatives in part of investment portfolio where hedge accounting was not applied. Excluding these transient factors, progress rate of profit was 51.5%, and here too, underlying performance is strong. Not bad at all. As for international business, as we have announced on August 5th, it is under the one-off impact of Taiwan COVID-related loss of JPY -53.9 billion to be booked in the second quarter and also under the impact of increasing yen-denominated profit due to yen depreciation. Excluding these factors, rate of progress in profit is 56.5%, suggesting underlying performance is strong. In fact, financial performance of key entities for the second quarter was overachieved versus local plan, which excludes impact of FX.
It was over achieved by JPY 23 billion . Next, I would like to explain about the full year projection. Please turn to page 7. Full- year adjusted net income on an actual basis is expected to be JPY 400 billion , down a JPY 150 billion from original projections. While our underlying capabilities are improving steadily, transient factors accounting for approximately JPY 160 billion , such as the spread of COVID infections and domestic natural catastrophes, were significant. Let me give some color on the Taiwan situation, which was particularly large on the next page. Please open to page 8. As announced on August 5th, net loss of JPY 53.9 b illion was reported in the second quarter for the impact of COVID in Taiwan.
The assumed COVID infection rate then was 30%, but as of the end of October, or actually it hit peak mid-October and has come down since then. The rate as of the end of October exceeded 32% and still counting. As such, we decided to revise the full-year net loss of the impact of COVID in Taiwan to JPY 91 billion. Estimated infection rate for the revised loss is 44%. Infection rates are extremely difficult to predict, but COVID insurance policy is a one-year coverage till February 15th next year for COVID coverage in Taiwan, and we will not let the negative impact to continue into fiscal year 2023. Please turn to page 9. This page illustrates full-year adjusted net income projection on a normalized basis, excluding transient factors. As explained already, our underlying performance of the business is strong.
We will revise our original full-year projections to JPY 560 billion, up JPY 10 billion or up 9% year-over-year from original projections on a normalized basis. Profit growth driver is organic growth of the international business in North America in particular. I believe our underlying performance capabilities are steadily enhancing, and I will be covering this in more detail at the IR briefing scheduled for next week. Lastly, but not least, to summarize, earnings for fiscal year 2022 was largely impacted by transient factors. For this very reason, management believes it is highly critical to a, strengthen our individual businesses and b, enhance the management level through global risk diversification strategy and group integrated management. This, I believe, is extremely critical.
We will buckle down and work even harder so that as a result, we will sustain world's top-class EPS growth and raise ROE to a level that is comparable to global peers. It is with such strong determination that I intend to run the company and once again, details will be explained in next week's IR meeting. That is all for me. Thank you.
Komiya-san, thank you very much for that. Now I would like to ask Okada-san to take us through the capital policy.
This is Okada speaking, CFO. Before closing, let me cover shareholder returns. Please open to page 10. Our basic shareholder return policy is dividend and to maintain DPS growth in line with profit growth. As addressed by Komiya-san, fiscal year 2022 adjusted net income on an actual basis was revised down for transient reasons. However, income projections on a normalized basis remain robust.
Source of dividend, five-year average adjusted net income has increased year-over-year from JPY 375 billion-JPY 390 billion. Therefore, DPS for FY 2022 will remain unchanged at JPY 300 before stock split or JPY 100 after stock split, or DPS growth of 18% year-over-year. Our stance on capital level adjustments remain intact. As always, opportunity for M&A or risk-taking that contribute to our corporate value and ROE enhancement will be pursued. If there are no such opportunities, we will execute share buyback. For fiscal year 2022, we announced in May JPY 100 billion share buyback plan. Since our ESR is at 122%, we have ample capital. We will stick to the plan.
Today, as was mentioned by Komiya-san, board resolution, which was held today, passed to execute the remaining JPY 50 billion. The company intends to execute the business strategy steadily and raise EPS and ROE while suppressing volatility and respond to your expectations in the capital market. Your continued understanding and support is very much appreciated. That is all for me.