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

Executive summary

• Adjusted profit for Q1 FY2026 (excluding strategic equity sales) was JPY 251 billion, up JPY 64.7 billion year-on-year, reaching 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 rose 14.1% year-on-year to JPY 1,686.2 billion, with net income attributable to owners up 33.4% to JPY 328.6 billion.

• Income before tax increased 33.4% year-on-year to JPY 440.9 billion, driven by higher investment gains and improved insurance service results.

• All business segments—domestic non-life, international, and domestic life—reported profit growth.

Financial highlights

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

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

• Financial result was JPY 245.7 billion, including investment gains of JPY 474.8 billion and insurance finance losses of JPY 229.1 billion.

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

• Adjusted profit rose 29.7% year-on-year to JPY 310.6 billion.

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 planned, but ongoing monitoring of market and catastrophe trends.

• 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.

• Domestic non-life business achieved 73.0% of its full-year adjusted profit target (excluding equity sales).