MS&AD Insurance Group (8725) Q4 2024 earnings summary

Executive summary

• FY2024 ordinary profit rose 42.5% YoY to ¥416.4 billion; net income attributable to owners of the parent increased 75.0% to ¥369.3 billion.

• Results reflected growth in domestic and international insurance businesses, while compliance remediation and governance strengthening remained priorities after corporate insurance price-fixing incidents.

Financial highlights

• Ordinary income rose 25.2% to ¥6,572.9 billion; underwriting income was ¥5,107.0 billion and investment income ¥1,417.7 billion.

• Ordinary expenses increased to ¥6,156.4 billion; underwriting expenses were ¥5,107.3 billion and operating and G&A expenses ¥798.0 billion.

• Comprehensive income reached ¥1,527.7 billion, versus a ¥25.7 billion loss in FY2023, reflecting higher unrealized gains on securities.

Outlook and guidance

• FY2025 forecast: ordinary profit ¥871.0 billion, up 109.2%; net income attributable to owners of the parent ¥610.0 billion, up 65.2%; EPS ¥384.70 post-split.

• Domestic new natural disaster incurred losses assumed at ¥87.5 billion for Mitsui Sumitomo Insurance and ¥71.0 billion for Aioi Nissay Dowa Insurance.

• Forecast assumes no significant market-rate, foreign-exchange or stock-price fluctuations from March 2024; strategic equity sales use end-April 2024 prices.

• FY2025 forecast annual dividend is ¥145 per post-split share, including ¥22.50 special dividends in each of the second and fourth quarters.