Japan Post Insurance (7181) investor relations material

Executive summary

• Net income reached a record high of ¥168.8bn, up 36.7% year-on-year, driven by lower policy reserve burdens and improved market conditions.

• Adjusted profit hit a record ¥171.5bn, up 17.7% year-on-year, after adjustments for policy reserves and goodwill amortization.

• Ordinary profit rose 59.7% year-on-year to ¥271.9bn, supported by improved positive spread.

• Embedded Value (EV) rose 8.0% to ¥4,256.5bn, mainly due to unrealized gains in domestic stocks.

• Total assets decreased 1.9% to ¥58,442.1bn, while net assets grew 28.1% to ¥4,153.6bn, with net unrealized gains on available-for-sale securities up 57.8%.

Financial highlights

• Ordinary income decreased to ¥5,625.7bn, down 8.8% year-on-year, mainly due to a 30.6% drop in insurance premiums.

• Investment income increased by ¥115.1bn to ¥1,310.7bn year-on-year.

• Operating expenses fell by ¥18.0bn to ¥413.3bn, with commissions and sales commissions both declining.

• Ordinary expenses fell 10.7% to ¥5,353.8bn, with insurance claims and others down 15.1% to ¥4,417.8bn.

• Net income per share was ¥152.55, up from ¥107.52.

Outlook and guidance

• Adjusted profit for FY27/3 is forecast at approximately ¥155.0bn, reflecting stable investment income despite a decrease in policies in force.

• Net income for FY27/3 is projected to decrease to ¥141.0bn, mainly due to lower core profit from life insurance activities.

• Ordinary income for FY27/3 is forecast at ¥5,130.0bn, with ordinary profit at ¥250.0bn.

• Dividend per share for FY27/3 is forecast at ¥50 (¥150 before stock split), with a medium-term payout ratio target of 55%.

• Medium-term target to increase dividends to ¥62 or more by FY28/3 if adjusted profit targets are met.