Japan Post Insurance (7181) Q4 2026 earnings summary

Executive summary

• Reviewed the Previous Medium-Term Management Plan (FY 2021–2026), highlighting significant progress in customer base expansion, corporate culture reform, asset management, revenue diversification, and operational streamlining.

• Launched a new Medium-Term Management Plan (FY 2026–2028) focused on sustainable growth through customer-centric value delivery, adaptive asset management, and future-oriented business transformation.

• Net income reached a record high of ¥168.8bn, up 36.7% year-on-year, driven by lower policy reserve burdens and improved market conditions.

• Adjusted profit also hit a record ¥171.5bn, up 17.7% year-on-year, after adjustments for policy reserves and goodwill amortization.

• Embedded Value (EV) rose 8.0% to ¥4,256.5bn, mainly due to unrealized gains in domestic stocks.

Financial highlights

• Adjusted profit for FY ended March 2026 reached JPY 171.5 billion, surpassing the target of JPY 97 billion and setting a record high.

• Positive spread for FY ended March 2026 hit a record JPY 255.5 billion, driven by diversified asset management.

• Dividend per share increased by JPY 20 in FY ended March 2026, with treasury stock acquisition up to JPY 45 billion.

• Ordinary profit rose to ¥271.9bn, up 59.7% year-on-year.

• Adjusted ROE for FY ended March 2026 reached 10.1%, exceeding the cost of capital.

Outlook and guidance

• Targeting market capitalization of JPY 2 trillion and record-high adjusted profit of JPY 190 billion by FY 2028.

• Adjusted profit for FY27/3 is forecast at approximately ¥155.0bn, reflecting stable investment income despite a decrease in policies in force.

• Net income for FY27/3 is projected to decrease to ¥141.0bn, mainly due to lower core profit from life insurance activities.

• Plans to increase dividend per share to JPY 62 or more by FY 2028, with a target total payout ratio of 55% on average.

• EV growth per share set as a key KPI, targeting 8% or more average growth.