Japan Post Insurance (7181) Q2 2026 earnings summary

Executive summary

• Addressed five key issues: customer base, cultural reform, asset management, revenue diversification, and business foundation.

• Net income for the six months ended September 30, 2025, rose 49.3% year-over-year to ¥93.8 billion, driven by lower policy reserve burdens and improved market conditions.

• Adjusted profit for FY March 2026 expected to rise to around JPY 162 billion, reflecting strong operational improvements.

• Comprehensive income surged to ¥613.5 billion from a loss of ¥74.7 billion in the prior year period, mainly due to significant gains on available-for-sale securities.

• Achieved significant increase in new policies in FY March 2025, but faced declines in FY March 2026 due to improper use of private financial information.

Financial highlights

• Ordinary income for the six months ended September 30, 2025, was ¥2,879.7 billion, with ordinary profit at ¥183.8 billion, up 10.1% year-over-year.

• Positive spread in FY March 2026 projected at JPY 225 billion, a company record.

• Dividend per share increased by JPY 20 for FY2025; total payout ratio set at around 55%.

• Embedded Value (EV) rose 8.0% from March 2025 to ¥4,255.1 billion, mainly from unrealized gains in domestic stocks.

• Upward revision of financial results forecast and treasury stock repurchase up to JPY 45 billion announced.

Outlook and guidance

• Full-year forecast for fiscal year ending March 31, 2026: ordinary income of ¥5,740.0 billion (down 6.9% year-over-year), ordinary profit of ¥260.0 billion (up 52.7%), and net income attributable to shareholders of ¥159.0 billion (up 28.8%).

• Next medium-term management plan targets reversal of declining policies in force, stronger sales structure, and enhanced asset management.

• Aims for market capitalization of JPY 2 trillion.

• Focus on expanding insurance offerings and leveraging digital technologies and AI for improved customer experience.

• Assumptions include stable market conditions, with new policies expected to double in the second half.