Sompo (8630) Q2 2025 earnings summary

Executive summary

• Adjusted consolidated profit for 1H FY2024 rose ¥22.3 bn YoY to ¥155.6 bn, driven by overseas investment income and base profit improvement in Fire, offsetting higher auto accident rates and repair costs.

• Consolidated net income for 1H FY2024 surged ¥130.7 bn to ¥262.2 bn, mainly from accelerated reduction of strategic holding stocks.

• Ordinary income rose 11.4% YoY to ¥2,962.9 bn for the six months ended September 30, 2024.

• Comprehensive income declined 55.7% YoY to ¥245.1 bn, mainly due to negative other comprehensive income.

• FY2024 adjusted consolidated profit is forecast at ¥270.0 bn, up ¥15.0 bn from initial guidance, with net income expected to reach ¥400.0 bn.

Financial highlights

• 1H FY2024 consolidated ordinary income was ¥2,962.9 bn, up ¥303.3 bn YoY; net premiums written rose ¥172.5 bn to ¥2,261.5 bn.

• Ordinary profit increased 91.4% YoY to ¥346.6 bn.

• Net income per share was ¥267.05, up from ¥132.26, reflecting a 3-for-1 stock split.

• Total assets grew to ¥15,171.1 bn from ¥14,832.8 bn as of March 31, 2024.

• 1H FY2024 investment profit (Sompo Japan) was ¥39.4 bn, with full-year forecast at ¥70.1 bn (+¥8.5 bn from initial forecast).

Outlook and guidance

• FY2024 adjusted consolidated profit forecast revised up to ¥270.0 bn (+¥15.0 bn from initial), with net income forecast at ¥400.0 bn (+¥170.0 bn from initial).

• Ordinary profit for the full year projected at ¥550.0 bn.

• Net income per share for the year forecast at ¥412.27.

• FY2024 DPS forecast raised to ¥132, up ¥20 from initial, with total shareholder return expected to double YoY.

• Natural disaster losses, including North American hurricanes, remain within initial budget.