Anicom Holdings (8715) Q2 2025 earnings summary

Executive summary

• Recurring revenue rose 10.3% year-over-year to JPY 32,903 million, exceeding plan by 2.8%.

• Recurring profit before amortization of goodwill increased 20.4% year-over-year to JPY 3,254 million; profit attributable to owners of parent rose 24.1% to JPY 2,180 million.

• Growth was driven by robust demand for pet insurance, expansion in pet-related internet services, and operational efficiency.

• The number of policies in force increased by 3.6% from the previous fiscal year-end, reaching 1,236,904.

Financial highlights

• Underwriting revenue increased 7.5% year-over-year to JPY 28,787 million; investment revenue surged 43.2% to JPY 516 million.

• Other recurring revenue increased 33.2% to JPY 3,599 million.

• Recurring expenses rose 9.3% to JPY 29,773 million; operating and general administrative expenses up 7.8%.

• Combined ratio improved to 93.5% from 94.0% year-over-year.

• Basic earnings per share for the period was 27.68 yen, up from 21.75 yen a year earlier.

Outlook and guidance

• Premiums for Wide Type products to be raised by an average of 6.6% starting December 1, 2024.

• Forecasts for end-FY03/25: 1,280,000 policies in force, 230,000 new policies, 88.2% renewal rate.

• Full-year forecast for FY2025: recurring revenue of 66,000 million yen (+9.2% YoY), recurring profit of 4,800 million yen (+15.4% YoY), profit attributable to owners of parent of 3,100 million yen (+13.6% YoY), and basic EPS of 38.90 yen.

• Annual dividend forecast is 8.00 yen per share.