Business

Project to build a Conglomerate Premium

The Sompo Group has taken the lead in its five core business areas – Domestic P&C Insurance, Overseas Insurance and Reinsurance, Domestic Life Insurance, Nursing Care & Seniors, and Digital – to create powerful value. Supporting this framework is the Business Owner System introduced in 2016. Giving business CEOs substantial authority to execute their own business strategy planning, investment decisions, and personnel allocation has led to an increase in centrifugal force as well as quicker decision-making and operational execution.

To make even more progress, we believe it is necessary to create a conglomerate premium (i.e. “group synergy”), by increasing centripetal force and allowing for rational risk-taking made possible by the Sompo Group as a whole, rather than by each individual business. Specifically, we will not only aim to enjoy the financial benefits through optimized risk-taking as a group under the slogan “Tsunagu, Tsunagaru, Tsunageru” (or “connecting, making connections and being connected”), but also aim to create major value for our customers and society by providing new services and solutions leveraging our data and knowledge gained in the development of various businesses of the Group.

In order for SOMPO to move forward with this project to create a conglomerate premium, we have formed a steering committee under Global ExCo, the highest executive committee in the Group, and with the Group COO at the helm, we are promoting organizational initiatives with the participation of the different business owners, as well as the Group’s CFO, CSO, and CHRO.

figure:Global ExCo, Steering Committee, Working Groups — Organization/System Chart

Working groups’ initiatives

We have set up working groups under the Steering Committee to facilitate the creation of a conglomerate premium and thoroughly pursue the Group’s best interests. The working groups were launched in three fields that were considered the most likely to produce quick results: retention and cession, investment, and multinational businesses.

The retention and cession working group reviews risk retention optimization and reinsurance coverage on a Groupwide basis, while the investment working group studies on taking additional risks by harnessing economies of scale and the use of the Group’s excess capital. The multinational business working group looks into building a platform, sharing systems and digital technologies, and increasing cross-selling activities.

figure:Multinational Business Working Group, Investment Working Group, Retention and Cession Working Group, Multinational Business, Retention and Cession, Investment

Executive Vice President, Head of Tokyo Office, Sompo International and Executive Vice President, General Manager of Global Business Department, Sompo Holdings, Inc.

Kenneth Reilly

One of SI Tokyo Office’s critical missions is to leverage our collective strengths across SOMPO’s domestic and overseas businesses. The SI Tokyo Office is taking the lead in advancing and managing these global initiatives.

In our working groups, members across both SOMPO Holdings and subsidiary companies work together to share expertise, information and openly exchange ideas. The Steering Committee made up of Business CEOs and CxO’s have substantive discussions based on these recommendations to determine the best path forward to implementation and execution.

In an ever changing marketplace, it is imperative to remain nimble. At the same time, the team focuses on the risks and opportunities and keeping core to our commitment to our customers, colleagues, business partners, and shareholders. The SI Tokyo office will pursue opportunities that enhance the core value of the Group, while increasing internal communication and leveraging the overall strengths of the organization.