Japan Post Insurance (7181) Q2 2027 earnings summary

Executive summary

• H1 FY2027 ordinary profit fell 39.0% YoY to ¥112.2bn and net income fell 7.3% to ¥87.0bn; higher investment income and adjusted spread were offset by weaker life-insurance profit.

• H1 adjusted profit was ¥91.1bn; FY27 adjusted profit guidance rose to ~¥180.0bn from ~¥155.0bn.

Financial highlights

• H1 ordinary income decreased 7.6% YoY to ¥2,661.7bn and ordinary profit fell to ¥112.2bn; net income was ¥87.0bn versus ¥93.8bn a year earlier.

• Investment income rose 24.2% to ¥769.8bn; insurance claims and other payments declined 15.2% to ¥1,960.7bn.

• Ordinary expenses fell 5.4% to ¥2,549.5bn, while investment expenses increased 141.9% to ¥348.1bn.

• Comprehensive income was ¥415.1bn, down 32.3% YoY, including ¥340.4bn of unrealized gains on available-for-sale securities.

• Consolidated operating expenses and other ordinary expenses totaled ¥238.0bn, down ¥1.2bn YoY.

Outlook and guidance

• FY27 adjusted profit forecast rose by ¥25.0bn to ~¥180.0bn; net income forecast increased to ¥172.0bn from ¥141.0bn.

• Revised FY27 forecasts: ordinary income ¥5,330.0bn, ordinary profit ¥200.0bn, core profit ~¥400.0bn and adjusted spread ~¥250.0bn.

• H1 adjusted profit reached 58.8% of the previous forecast and 50.6% of revised guidance.

• FY27 dividend forecast was revised to ¥52 per share, comprising ¥25 interim and ¥27 year-end.

• Revised forecast assumes a 10-year JGB yield of 3.23% in March 2027, versus 2.58% previously.