Tokio Marine Holdings, MS&AD Insurance Group Holdings and Sompo Holdings posted strong results for the financial year ended 31 March 2024 (FY23) despite a series of corporate scandals, notes S&P Global Ratings.
Of the "Big Three" Japanese P&C insurers, Tokio Marine logged the highest net income attributable to owners of the parent at JPY695.81bn for FY23, a significant year-over-year increase from JPY374.61bn. The insurer's adjusted net income grew by 60% year over year to JPY11.6bn due to reduced winter storm losses and increased capital gains from the sale of business-related equities, according to an investor presentation.
Sompo reported the largest year-over-year increase in attributable net income at JPY416.05bn, up from JPY26.41bn. The insurer posted a record adjusted consolidated profit of JPY291bn in FY23, up by JPY138.8bn year over year This was supported by adjusted profit growth in the insurer's domestic property and casualty, overseas, and life insurance businesses, the company said in its earnings presentation.
MS&AD's attributable net income was JPY369.27bn for FY23, up from JPY211.01bn a year ago. The insurer generated a record-high group adjusted profit of JPY379.9bn, up by JPY157.7bn year over year. The insurer's overseas business contributed significantly to the group adjusted profit growth based on data presented during an earnings call.
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Net profit attributable to parent
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FY2023 (YE 31 Mar 2024)
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FY2022 (YE 31 Mar 2023)
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JPY bn
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JPY bn
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Tokio Marine Holdings
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695.81
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374.61
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Sompo Holdings
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416.05
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26.41
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MS&AD Group Holdings
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369.27
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211.01
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Source: S&P Global Ratings
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Mixed adjusted earnings outlook
Sompo is guiding for an adjusted consolidated profit of JPY255bn for FY24, lower than the JPY291.0bn recorded for FY23. The insurer anticipates a challenging start for its domestic P&C insurance business, which will be offset by strong growth of overseas business, Group CFO Masahiro Hamada said during an earnings call.
Tokio Marine aims to deliver an adjusted net income growth of at least 7%, relying on rate hikes and underwriting expansion in the property and casualty business to achieve the target, according to an investor presentation.
MS&AD expects its FY24 group adjusted profit to increase by JPY250.0bn year over year to JPY630.0bn, mainly due to the sale of cross-shareholdings, according to an earnings presentation.
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