Japan Post Insurance (7181) investor relations material

Executive summary

• Net income rose by ¥13.7bn (+65.4% year-on-year) to ¥34.6bn, driven by reduced policy reserve burdens and improved market conditions.

• Ordinary income for the quarter was ¥1,434.1bn, a 2.1% decrease year-over-year.

• Ordinary profit was ¥67.4bn, down 1.0% year-over-year, as insurance premiums and investment income declined, but other ordinary income surged 409.3%.

• Adjusted profit increased by ¥1.5bn (+4.6% year-on-year) to ¥35.1bn, reflecting adjustments for policy reserves and goodwill amortization.

• Comprehensive income increased 123.1% year-over-year to ¥195.1bn, driven by higher unrealized gains on securities.

Financial highlights

• Insurance premiums and others fell to ¥576.7bn from ¥1,021.0bn year-on-year, a 43.5% decrease.

• Other ordinary income rose sharply to ¥566.4bn, up 409.3% year-over-year.

• Operating expenses decreased by ¥10.5bn to ¥119.7bn.

• Ordinary expenses decreased 2.2% year-over-year to ¥1,366.7bn, with insurance claims and others at ¥1,170.2bn.

• Net income per share for the quarter was ¥93.18, up from ¥54.73 a year earlier.

Outlook and guidance

• Full-year net income forecast is ¥136.0bn, with adjusted profit expected at ¥142.0bn.

• Full-year forecast for fiscal year ending March 31, 2026: ordinary income of ¥5,640.0bn (8.5% increase), ordinary profit of ¥136.0bn (40.9% increase), and net income attributable to shareholders of ¥240.0bn (10.1% increase).

• Dividend forecast for FY2026 is ¥124.00 per share, up from ¥104.00 in FY2025.

• Assumptions include 10-year JGB yield at 1.4%, USD hedging cost at 3.1%, and Nikkei at 33,781.

• Sensitivity analysis shows a 50bp rise in hedging costs could reduce positive spread by ¥10.0bn.