Sompo (8630) Q1 2025 earnings summary

Executive summary

• Adjusted consolidated profit for 1Q FY2024 was ¥80.3 bn, largely unchanged year-over-year, with strong progress (31%) toward the FY2024 forecast, driven by domestic P&C and overseas businesses.

• Ordinary income rose 5.0% year-over-year to ¥1,522.5 bn, driven by higher underwriting and investment income.

• Net income attributable to shareholders increased 20.0% year-over-year to ¥120.0 bn.

• Strategic holding stocks reduction reached ¥152.6 bn by end of July, with a gain on sale of ¥80.3 bn (before tax).

• Ordinary profit grew 11.6% year-over-year to ¥143.7 bn.

Financial highlights

• Net premiums written rose 7.2% year-over-year to ¥1,218.5 bn, with overseas business profit up in local currency terms.

• Consolidated net income for 1Q FY2024 was ¥120.0 bn, up ¥19.9 bn YoY; adjusted consolidated profit was ¥80.3 bn, down ¥1.4 bn YoY.

• Net claims paid rose 11.7% year-over-year to ¥530.5 bn.

• Total assets as of June 30, 2024, were ¥15,016.9 bn, up ¥184.2 bn from March 31, 2024.

• Net assets reached ¥3,038.1 bn, up ¥169.8 bn from March 31, 2024.

Outlook and guidance

• FY2024 forecasts for consolidated net income (¥230.0 bn) and adjusted consolidated profit (¥255.0 bn) remain unchanged from May 2024.

• Full-year forecast for ordinary profit is ¥320.0 bn, down 34.4% from the previous year.

• Net income attributable to shareholders is projected at ¥230.0 bn, down 44.7% year-over-year.

• Annual dividend forecast is ¥112.00 per share post-stock split.

• Upfront investments and higher auto repair costs expected to weigh on domestic P&C, while overseas growth and investment income remain key drivers.