SOMPO’s Purpose
Overview of the SOMPO’s Value Creation
Through the Group’s capacity to bring together diverse businesses and the connections of each business, the Sompo Group works to create diverse value by leveraging each business’ presence and competitive advantage in creating new value by using its own strengths to solve problems.
In accordance with the three core strategies of the Mid-term Management Plan, the five businesses that support SOMPO will drive the Group’s common “Value Creation Cycle” by leveraging their respective strengths. In addition, by building a “Real Data Platform” (RDP), a framework for creating new solutions that contribute to security, health, and wellbeing by utilizing real data accumulated through this process, we will be able to provide value on an even larger scale and realize SOMPO’s Purpose.
Value Creation Process
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Business foundation
With “A Theme Park for Security, Health and Wellbeing,”create a society in which every person can live a healthy, prosperous and happy life in one’s own way.
Social value delivered by SOMPO
Ability to generate cash flow, mainly from domestic P&C insurance, enabling the Group to make growth investments
Gross revenue: ¥3,677.5 billion
Sound financial base and ample room for growth
Adjusted consolidated net assets: ¥2,824.8 billion
Trust and responsibility cultivated through our 130-year history
Customer base of roughly 20 million
Networking with diverse stakeholders
<Leading examples of collaboration>
Palantir; Tier IV, Inc.; National Institute of Advanced Industrial Science and Technology; Institute for Advanced Biosciences, Keio University; and others
<Participation in international initiatives>
Partnership for Carbon Accounting Financials (PCAF), the Net Zero Alliance under the Glasgow Financial Alliance for Net Zero (GFANZ), and others
Group of people who share the three core values that are realized through new work styles
Digitally capable human resources to accelerate DX
A corporate culture unafraid of change
Environment enabling use of cutting-edge technologies
SOMPO Digital Lab: Global trilateral structure Future Care Lab in Japan: R&D on new nursing care
High-volume, high-quality real data accumulated from diverse lines of business
Advanced problem-solving ability for converting social issues into business opportunities
Achieved sustainable growth
Adjusted consolidated profit: ¥261.3 billion
Maintained and improved capital efficiency to meet shareholder
expectations
Adjusted consolidated ROE: 9.4%
Diversified to underpin earnings stability
Risk diversification ratio: 41.1%
Overseas business ratio: 23.7%
Made contributions to society in the form of infrastructure
that supports daily life
Net claims paid: ¥1,584.3 billion
Number of nursing care recipients: 90,000
Enhanced brand power: Brand value: US$605 million*
Increased presence through engagement in international initiatives
Attended 7 WEF annual meetings in Davos
*Based on a survey by Interbrand Japan, Inc.
Producing employees who are motivated by their My Purpose
Goal: Completion of My Purpose training by all eligible participants by FY2023
Result: 66% have undergone training for domestic P&C insurance, domestic life insurance, and nursing care & seniors business
Enhanced diversity of human resources as a source of innovation
Ratio of female employees in management positions: 26.8%
Improved employee job satisfaction and happiness
Goal: Achieve average Gallup Q12 target by FY2023
(Japan: 3.70 pts, Overseas: 4.10 pts)
Result: Japan: 3.46 pts, Overseas: 4.02 pts
Proactively invested in digital technology and leveraged industry-government-academia collaboration to deliver innovation
Enhanced our lineup of products and services that underpin
customers’ security, health, and wellbeing
Newly developed insurance products, riders, and services in FY2021: 46*
Reduced the burden of nursing care and contributed to a sustainable aging society
Goal: Introduce future nursing care models in 258 facilities by FY2023
*Simple aggregate of the number of newly developed products, services and riders released by Sompo Japan and Sompo Himawari Life in FY2021
Greenhouse gases (GHG) Reduction target
Scope 1/2/3 (Category 1–14)
2050: Net zero
Scope 3 (Category 15: Investments)
2050: Net zero
Value Creation Cycle
The Sompo Group is working as one to drive the “Value Creation Cycle” by combining capital and developing diverse businesses to realize SOMPO’s Purpose. The Value Creation Cycle consists of three pathways: the “Route of Driving Force,” in which employees motivated by My Purpose work in their own way in an environment full of I&D* (inclusion and diversity) and foster a culture of repeatedly tackling challenges; the “Route of Existing Business,” in which trust and empathy are generated through the provision of cooperation-oriented high-quality services; and the “Route of New Value Creation,” in which new solutions are offered by fully utilizing data generated from existing businesses as well as leveraging the Real Data Platform (RDP) that creates DX and SOMPO’s proprietary business model. The Sompo Group’s unique style of value creation is to continuously create value via the cycle of these three routes through our business activities. By strengthening and expanding the Value Creation Cycle, we aim to enhance corporate value and realize SOMPO’s Purpose.
*Inclusion is important for respecting and acknowledging each employee’s diverse My Purpose and characteristics, and having them fully demonstrate their unique abilities, which will lead to innovation. In order to express this meaning, this part uses the acronym I&D for diversity and inclusion (D&I).
My Purpose and SOMPO’s Purpose
Overlap of My Purpose and SOMPO’s Purpose
We are working to spread the Purpose concept and voluntary efforts to achieve it among all Group employees by overlapping “My Purpose,” which signifies each employee’s life goals and meaning of their work, and “SOMPO’s Purpose.” As a result, we aim to realize SOMPO’s Purpose by linking our employees’ sense of fulfillment and happiness to the creation of innovation through their daily work as they take on challenges in their own way.
- My Purpose
- I&D
- Innovation
Creating innovation through the concentration and collision of diverse values
We are working to foster a culture in which employees from various backgrounds respect each other’s “My Purpose” and recognize each other’s diverse values. This culture and human resource strategy based on “My Purpose” will create a virtuous cycle that attracts diverse human resources from outside the company and further strengthens I&D. It will also create new innovations through the concentration and collision of diverse values.
“Route of New Value Creation”
Providing solutions for future society
SOMPO will attract cooperation partners by utilizing its abundant real data obtained from various business activities of its existing businesses, and will provide solutions for the problems encountered by future society through DX and Sompo’s unique business model RDP, thereby creating impact.
- My Purpose
- Engagement
- Innovation
Increasing engagement and improving capabilities for innovation
In an environment where each and every employee with their own “My Purpose” can feel a sense of happiness, fulfillment, and being true to themselves, employees being self-motivated to take on challenges will lead to higher engagement. Through dialogue between supervisors and subordinates, we will spur employees to take on challenges based on their own motivation without fear of failure, increase engagement, and systematically improve the ability to generate innovation.
“Route of Existing Business”
Providing cooperation-oriented high-quality services
Employees driven by “My Purpose” are working to develop and provide high-quality products and services in existing business domains, such as insurance and nursing care, by enthusiastically engaging in cooperation with partners and shifting to high value-added operations through business innovation. Through business activities in these existing business domains, we aim to foster trust and empathy from our customers and achieve steady growth and further development of our businesses.
Message from the Value Communication Team (VCT)
The Value Communication Team (“VCT”), consisting of the Group CVCO, Group CSuO, and Group CPRO, was established in August 2021 with the mission of enhancing corporate value through effective communication with multi-stakeholders including the financial market. To date, we have led the Group’s key initiatives, including analysis of corporate value, brand strategy, PR, dissemination of Purpose to Group employees and SDGs management (ESG initiatives) etc. Amidst a drastically changing business environment surrounding the Group, the three members with diverse backgrounds work closely together and collaborate with business owners, and CxOs including CFO to lead and support Group-wide efforts to enhance corporate value.
We also send a message for these efforts to various stakeholders to enhance SOMPO’s corporate value.
Chairman of Overseas M&A, Group CVCO
Nigel Frudd
To realize SOMPO’s Purpose, our mission is to transform the culture of SOMPO—starting with employees having their own My Purpose—promote SDGs management that creates social and economic value through our core businesses, and build a brand strategy that communicates these initiatives as a connected story. We will contribute to the enhancement of corporate value by demonstrating SOMPO’s unique sustainable growth both internally and externally.
Group CSuO
Ryoko Shimokawa
As the person in charge of the public relations domain, my mission is to communicate efforts to realize SOMPO’s Purpose to internal and external stakeholders through press coverage, advertising, and publicity, both domestically and internationally, as well as to raise the value of the Group’s brands, increase the number of customers and profit, and enhance corporation value. By communicating the concept of “A Theme Park for Security, Health & Wellbeing,” we aim to foster a sense of unity among the 74,000 officers and employees of the Group.
Group CPRO
Hirofumi Shinjin
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