Sompo (8630) Q2 2026 earnings summary

Executive summary

• Adjusted consolidated profit for 1H FY2025 rose by JPY 78.1 billion year-over-year to JPY 247.4 billion, achieving 68% of the initial full-year forecast and marking a record high, driven by fewer natural catastrophes, improved domestic P&C profitability, and strong overseas investment income.

• Consolidated net income for 1H FY2025 was JPY 360.4 billion, up JPY 177.8 billion year-over-year, also a record high.

• Full-year FY2025 adjusted consolidated profit forecast was revised up by JPY 77 billion to JPY 440 billion, with consolidated net income expected at JPY 540 billion, both set to surpass previous record highs.

• Total shareholder return for FY2025 is projected at JPY 250 billion, JPY 26 billion above the initial forecast, including a JPY 77 billion share buyback.

• Comprehensive income surged to JPY 763.9 billion from JPY 150.0 billion year-over-year.

Financial highlights

• Insurance revenue for 1H FY2025 was JPY 2,644.5 billion, up JPY 63.5 billion year-over-year.

• Domestic P&C adjusted profit for 1H FY2025 was JPY 113.9 billion, up JPY 54.7 billion year-over-year, mainly due to fewer major natural catastrophes and improved fire insurance profitability.

• Overseas adjusted profit for 1H FY2025 was JPY 112.7 billion, up JPY 20.7 billion year-over-year, supported by fewer disasters and higher investment income.

• Net income before tax more than doubled to JPY 465.4 billion from JPY 222.2 billion year-over-year.

• Total assets grew to JPY 16,356.5 billion from JPY 15,890.0 billion as of March 31, 2025.

Outlook and guidance

• Full-year FY2025 adjusted consolidated profit is forecasted at JPY 440 billion, up JPY 77 billion from the initial forecast, with consolidated net income expected at JPY 540 billion, up JPY 205 billion from the initial forecast.

• Basic earnings per share for the full year is projected at JPY 591.68.

• Annual dividend forecast is JPY 150.00 per share, up from JPY 132.00 in the previous year.

• Fire insurance profitability is expected to continue improving due to rate hikes and underwriting enhancements; auto insurance rates will be revised up by 7.5% in January to address rising accident frequency and repair costs.

• Overseas insurance revenue is increasing across segments, though the rate environment is softening; combined ratio expected to remain favorable.