MS&AD Insurance Group (8725) Q4 2026 earnings summary

Executive summary

• Consolidated net income for FY2025 reached ¥787.3 billion, up ¥95.6 billion year-on-year, with group adjusted profit hitting a record ¥1,000.9 billion, up ¥269.1 billion year-on-year.

• Ordinary income rose 14.9% to ¥7,653.0 billion, and comprehensive income rebounded to ¥1,219.9 billion from a prior-year loss.

• Strong growth in domestic non-life, life, and overseas insurance businesses, with notable gains in the Americas and Europe; international business profit rose by ¥162.1 billion.

• Governance reforms advanced, including transition to a company with an Audit and Supervisory Committee and increased outside directors.

• Merger agreement finalized between MSI and ADI, effective April 2027, to strengthen domestic non-life insurance.

Financial highlights

• Net premiums written in domestic non-life insurance rose by ¥122.6 billion to ¥3,269.6 billion; overseas subsidiaries' net premiums written grew by ¥207.8 billion to ¥1,735.1 billion.

• Domestic life insurance premium income increased by ¥100.6 billion to ¥1,741 billion, mainly from MSP Life.

• Net income per share (basic) increased to ¥528.87 from ¥445.52 year-on-year.

• Return on equity improved to 18.0% from 16.3% year-on-year.

• Total assets grew to ¥28,640.8 billion, up ¥2,399.5 billion from the previous year.

Outlook and guidance

• FY2026 adjusted profit forecast is ¥800 billion under IFRS, down ¥118.7 billion year-on-year, mainly due to lower gains from sales of strategic equity holdings.

• Excluding equity sales gains, adjusted profit is expected to be ¥532 billion, flat year-on-year.

• Annual dividend for FY2026 projected at ¥170 per share, up ¥10 from previous year, with a planned share buyback of ¥80 billion during the interim period.

• Net income attributable to owners of the parent is forecast at ¥425.0 billion for the year ending March 31, 2027, under IFRS.

• The group expects incurred losses from new domestic natural catastrophes of ¥150.0 billion.