Sompo (8630) investor relations material

Executive summary

• Adjusted consolidated profit for FY2025 reached a record ¥535.2 billion, up ¥211.8 billion year-on-year, surpassing the FY2030 target ahead of schedule, with growth across all business segments and improved profitability in domestic P&C and lower catastrophe losses.

• Consolidated net income for FY2025 surged by ¥396.9 billion to ¥640.0 billion, also a record high.

• All major business segments—domestic P&C, overseas insurance, and domestic life—reported revenue and profit growth, with significant improvement in insurance service and finance results.

• FY2025 outperformed initial forecasts by ¥172.2 billion, mainly due to improved underlying profitability and lower catastrophe losses.

• Net incurred losses from natural disasters declined both domestically and overseas, supporting improved profitability.

Financial highlights

• Insurance revenue for FY2025 was ¥5,372.9 billion, up ¥307.4 billion year-on-year; FY2026 forecast is ¥6,410.0 billion, up ¥1,037.0 billion.

• Adjusted consolidated profit for FY2025: ¥535.2 billion (+¥211.8 billion YoY); FY2026 forecast: ¥500.0 billion.

• Consolidated net income for FY2025: ¥640.0 billion (+¥396.9 billion YoY); FY2026 forecast: ¥490.0 billion.

• Insurance service result nearly doubled, up 93.4% year-on-year to ¥588 billion.

• Finance result surged 188.1% to ¥344 billion, driven by strong investment gains and FVTPL/FX gains.

Outlook and guidance

• FY2026 adjusted consolidated profit projected at ¥500 billion, up ¥62.4 billion on a normalized basis, excluding one-off Nat Cat tailwind.

• FY2027 consolidated insurance revenue forecasted to rise 19.3% to ¥6,410 billion, led by a 38.5% increase in overseas insurance revenue.

• Net income attributable to owners of parent is projected to decrease 23.4% to ¥490 billion in FY2027, reflecting higher expected natural disaster losses.

• Dividend per share for FY2026 projected at ¥200, marking the 13th consecutive year of dividend growth.

• Further profit growth expected from domestic P&C (auto and fire insurance) and full-year contribution from Aspen in overseas business.