Case Study: Tokio Marine predicts stock movements with SESAMm's NLP insights

Tokio Marine - Customer Case Study

Tokio Marine & Nichido Fire Insurance Co., Ltd. partnered with SESAMm to explore how natural language processing could help predict stock price movements and better understand market behavior. The insurer wanted a way to turn news and social media text into usable signals for investment research, especially in fast-changing and highly stressed market conditions.

Using SESAMm’s TextReveal® NLP alternative data solution, Tokio Marine developed AI analytics models that extracted digital sentiment from news and social networking data for equities and credit markets. The collaboration showed that sentiment often turned negative before market declines, especially during events like COVID-19, and that the NLP signal delivered positive, consistent, risk-adjusted performance, low correlation to the benchmark, and stronger returns during adverse periods than the U.S. high-yield total return index.

Tokio Marine