Sompo (8630) Q1 2026 earnings summary

Executive summary

• Adjusted consolidated profit for 1Q FY2025 was ¥99.7bn, up ¥25.7bn year-over-year, with consolidated net income at ¥118.5bn, reflecting 35% progress toward the full-year forecast.

• Insurance service result rose by ¥45.7B to ¥98.1B year-over-year, driven by higher insurance revenue and lower reinsurance expenses.

• Profit growth was driven by improved base profitability in Domestic P&C (auto and fire), absence of natural disasters, and strong overseas underwriting and investment income.

• Finance result declined by ¥70.1B to ¥66.4B year-over-year, reflecting lower investment gains and higher insurance finance losses.

• Net income attributable to owners of parent fell by ¥24.1B to ¥118.6B compared to the same quarter last year.

Financial highlights

• Adjusted consolidated profit rose to ¥99.7bn in 1Q FY2025 from ¥74.0bn in 1Q FY2024; consolidated net income reached ¥118.5bn.

• Insurance revenue for the quarter was ¥1,263.6B, up 1.2% year-over-year.

• Domestic P&C adjusted profit increased by ¥16.8bn, Overseas by ¥7.0bn, Domestic Life by ¥0.3bn, and Nursing Care by ¥0.6bn year-over-year.

• Combined ratio for Domestic P&C improved to 96.1%, down 7.2pt year-over-year, with loss ratio down 6.6pt.

• Overseas adjusted profit was $376mn, up $79mn, with insurance revenue up 9% and combined ratio improving by 3.0pt to 94.0%.

Outlook and guidance

• FY2025 adjusted consolidated profit is forecast at ¥363.0bn, up ¥39.5bn year-over-year, mainly from increased overseas underwriting profit.

• Full-year net income attributable to owners of parent is forecast at ¥335.0B, up 37.8% year-over-year.

• Annual dividend forecast is ¥150.00 per share, with no revisions announced.

• KPIs for the mid-term management plan are on track, with strategic shareholding reduction and profitability improvements progressing ahead of plan.

• FY2025 consolidated net income is forecast at ¥335.0bn, unchanged from previous guidance.