(Issued in August 2023)

Integrated Annual Report 2023(Online Ver.)

To create a society in which
every person can live a healthy,
prosperous and happy life in
one’s own way

SOMPO’s Purpose

With “A Theme Park for Security,
Health & 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

• Protect people from future risks facing the society
• Create a future society for healthy and happy lives
• Foster the ability to change the future society with diverse talents and connections

We will never let this lofty ambition be dismissed as a mere pipe dream.

In these uncertain times, the one thing that we rely upon is the thoughts and feelings that are in the heart of every one of us.

SOMPO strives to evolve into a powerful organization where every employee respects one another and works with a sense of fulfillment and happiness by facing each employee’s thoughts and feelings deeply.
When diverse values and thoughts intermingle and we are passionately motivated to take on a challenge, the “Value Creation Cycle” continues to expand and accelerate.
In this way, new innovations that make security, health & wellbeing possible will continue to be created.

The thoughts and feelings that are in the heart of every employee will make SOMPO’s Purpose a reality

Management Message

Message from the Group CEO

SOMPO’s unique purposedriven management will make it indispensable.

Kengo Sakurada

Group CEO, Director, Chairman and Representative Executive Officer Sompo Holdings, Inc.

Message from the Group COO

Our Purpose is to create a society in which every person can live a healthy, prosperous, and happy life in their own way.

To this purpose, we strive to meet the changing needs of customers and earn their trust while strengthening our core and our resilience.

Mikio Okumura

Group COO, Director,
President and Representative Executive Officer

Strategy

Strategy to Realize SOMPO’s Purpose

To continue meeting the needs of its customers, SOMPO will work to strengthen resilience to improve its financial value while providing and returning to the Group the financial and customer base gained from these activities. In addition, we aim to create social value by making use of the diversity of our business and by using data as the starting point for our strategy of “Building and Making Connections.” Using the abundant data from our operations as a starting point, we will create value that only SOMPO can deliver, thereby enhancing our corporate value.

*Parentheses indicate major companies in each business segment. *As of March 31, 2023

Message from the Group CFO/CSO

Execution of medium-term profitability measures and effective capital policies will drive SOMPO’s growth

Masahiro Hamada

Group CFO/CSO

Three Horizons of Sompo’s Digital Strategy

Our digital strategy is key to executing our strategy to realize our Purpose. In addition to contributing to business efficiency, cost reduction, and new service development through DX (Horizon 1), we are spearheading the transformation of the business itself, for example by contributing to the development of new businesses by utilizing data accumulated through DX (Horizon 2). Furthermore, in anticipation of major changes in the future, such as Web3 and AI, we will drive our own transformation and the challenge to realize our Purpose (Horizon 3).

To take on the challenge of disruptive innovation through digitalization (“digital disruption”), in 2016 we established SOMPO Digital Lab in Tokyo and Silicon Valley and launched our digital strategy.

In addition to acting as an “antenna” to pick up on advanced digital technologies as early as possible, SOMPO Digital Lab was established as a structure responsible for market research and PoC/solution delivery and providing comprehensive support to each business unit.

Recognizing cyber risk as a material risk to corporate management due to the threat posed by the increasing seriousness and sophistication of cyberattacks, we established SOMPO Digital Lab in Tel Aviv (Israel) in November 2017 and entered the cybersecurity business in January 2018.

April 2016
Established SOMPO Digital Lab in Tokyo and Silicon Valley
May 2016
Established Group CDO (Chief Digital Officer) position
November 2017
Established SOMPO Digital Lab in Tel Aviv
January 2018
Entered the cybersecurity business
March 2019
Established the short-term insurance company Mysurance as an in-house digital startup

SOMPO possesses valuable and vast amounts of real data on accidents, disasters, lifestyles, health, and nursing care obtained through its insurance, nursing care, and healthcare businesses. Thinking that we can leverage this data to provide new solutions, we started building a Real Data Platform (RDP) that will serve as a foundation for utilizing real data to help solve social issues and realize “A Theme Park for Security, Health & Wellbeing.”

November 2019
Established Palantir Technologies Japan jointly with US-based Palantir Technologies Inc.
April 2020
Established joint CDO (Chief Digital Officer) structure
June 2020
SOMPO, Palantir, and Palantir Technologies Japan agree to launch “Real Data Platform for Security, Health & Wellbeing” in Japan
September 2020
Established B-to-B auction business Sompo Aux.

To further accelerate our DX and RDP efforts, we created the position of CDO in each the Group’s main business units, and established a CDO alliance to coordinate with the Group CDO.

In the Nursing Care & Seniors Business, we collaborated with Palantir to develop software solutions and developed “egaku” to support Japan’s nursing care industry through in-house utilization and collaboration with external nursing care providers, commercializing it in April 2023.

SOMPO will continue to take on challenges in order to transform itself and continue to grow sustainably in the face of the rapid evolution and development of new technologies that have the potential to have a major impact on society such as generative AI and LLMs (large language models), as well as the possibility of the arrival of a new ecosystem (Web3) based on the blockchain and related technologies to replace conventional centralized systems.

April 2021
Capital and business alliance with ABEJA, an AI development startup
July 2021
Established SOMPO Light Vortex, a core digital technology business
April 2022
Created the position of CDO in the Group’s main businesses and established a CDO alliance to coordinate with the Group CDO
Started using DX metrics to manage the progress of DX measures and their results
April 2023
Launched “egaku” Nursing Care RDP

CDOs invigorating DX at SOMPO

Making the Data Business a Reality

Future of Nursing Care Realized by the Nursing Care Real Data Platform “egaku”

Strategies for Coming Disruption

SOMPO’s Purpose Management

Value Creation Cycle　— Common Framework to Realize Purpose —

SOMPO has made Purpose the core of its management. Based on the “Value Creation Cycle,” which serves as a common framework across the Group, our diverse businesses connect and collaborate across business boundaries under a single “Theme Park” strategy, and our employees, who have diverse backgrounds, use My Purpose as a starting point to maximize their individual strengths and implement initiatives for the realization of Purpose.

The “Value Creation Cycle” consists of three pathways: the Route of Driving Force, the Route of Existing Business, and the Route of New Value Creation. The continuous creation of value through this three-part cycle is the means by which we increase our corporate value and realize our Purpose.

Value Creation Cycle ― Group Common Framework —

figure:Value Creation Cycle　MY Purpose:I&D, Strengthen innovation, Improve employee engagement. SOMPO’s Purpose:Provide solutions to change the future society, Improve quality/Customer reputation, Expand social impact.

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.

We respect each other’s My Purpose and recognize each other’s diverse values. In such a workplace full of I&D (Inclusion & Diversity), each employee works with high engagement, feeling a sense of self-worth, happiness, and fulfillment. Then, driven by My Purpose, they repeatedly take on challenges and create innovations. This fosters a culture in which this behavior becomes the norm and the driving force for the realization of Purpose.

Main initiatives

Town hall meetings by the Group CEO
My Purpose 1-on-1 meetings
SOMPO Awards

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.

Main initiatives

Global top-line growth
Earnings structure reform in the Domestic P&C Insurance Business
Creation of conglomerate premium (One Sompo)

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.

Main initiatives

“egaku” Nursing Care RDP
Health support through Insurhealth^®

Business Foundation

Sompo Holdings Integrated Annual Report 2023 cover

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