The outlook for Meiji Yasuda Group for the financial year ending 31 March 2025 (FY2024) remains positive, with insurance premiums expected to increase, says CreditSights, a credit research unit of the Fitch Group.
Meiji Yasuda Group projects insurance premiums of ~JPY3,400bn ($22.6bn), an increase from the JPY3,333bn reported in FY2023, says CreditSights in a report.
While core profit is expected to decrease to around JPY520bn from JPY561bn the previous year, CreditSights notes that the JPY520bn target was recently revised upward from JPY470bn in 1Q2024, due to an increase in interest/dividend income for Meiji Yasuda Life and favourable payout rates for group insurance and individual disability insurance at StanCorp.
The core profit made good progress during 1HFY2024 at JPY298.5bn (7.4% more than the new target run-rate). In CreditSights’ view, Meiji Yasuda Group exhibited a good performance in 1H2024, underpinned by both its domestic and overseas operations. Although consolidated net income decreased due to higher contingency reserves, the growth in core profit suggests improved net investment income.
CreditSights views the company's high solvency, with a reasonable buffer evidenced by an improved ESR and strong SMR, as indicative of good risk management.