MS&AD Insurance Group (8725) Q1 2027 earnings summary

Executive summary

• Adjusted profit for Q1 FY2026, excluding gains from strategic equity sales, reached JPY 251 billion, up JPY 64.7 billion year-on-year, achieving 47.2% of the full-year forecast.

• Group-adjusted profit rose by JPY 71.1 billion year-on-year to JPY 310.6 billion, representing 38.8% of the full-year forecast.

• Insurance revenue for Q1 FY2026 was JPY 1,615.8 billion, up JPY 208.8 billion year-on-year.

• Net income attributable to owners increased 33.4% year-on-year to JPY 328.6 billion, with income before tax up to JPY 440.9 billion.

• Total assets reached JPY 30,124.8 billion, with total equity rising to JPY 6,730.5 billion.

Financial highlights

• Domestic non-life insurance adjusted profit increased by JPY 4.2 billion year-on-year to JPY 124 billion, mainly due to improved loss ratios in auto insurance.

• International business adjusted profit surged by JPY 52.9 billion year-on-year to JPY 108.8 billion, driven by low loss levels, higher revenues, and equity earnings from W. R. Berkley.

• Domestic life insurance service profit improved by JPY 4.4 billion year-on-year to JPY 16.5 billion, mainly from reduced losses on onerous contracts.

• Insurance service result was JPY 209.2 billion, with insurance revenue of JPY 1,686.1 billion and insurance service expenses of JPY 1,327.0 billion.

• Basic earnings per share increased to JPY 226.84 from JPY 162.99 year-on-year.

Outlook and guidance

• Progress ratios for both adjusted profit and group-adjusted profit are ahead of internal Q1 expectations, especially in international business.

• No revision to annual guidance is planned at this time, despite strong Q1 performance and favorable market momentum.

• Full-year net income attributable to owners is forecast at JPY 425.0 billion, down 16.8% from the prior year, with basic EPS projected at JPY 295.75.

• Dividend forecast for the year ending March 31, 2027 is JPY 170.00 per share, including ordinary and special dividends.

• Strategic equity unwinding is progressing steadily, with no current plan to accelerate or revise targets.