Sompo (8630) Q3 2025 earnings summary

Executive summary

• Adjusted consolidated profit for 3Q FY2024 was ¥235.6 bn, with consolidated net income up ¥58.8 bn to ¥381.8 bn, the highest 3Q profit ever, driven by strategic stock sales and strong overseas investment income.

• Ordinary income rose 7.9% year-over-year to ¥4,151.0 billion for the nine months ended December 31, 2024, driven by increases in underwriting and investment income.

• Ordinary profit increased 17.7% year-over-year to ¥508.9 billion, while net income attributable to shareholders grew 18.2% to ¥381.9 billion.

• Progress rate reached 87% of the full-year adjusted profit forecast of ¥270.0 bn, with all business segments on track to meet or exceed targets.

• Comprehensive income dropped 64.1% year-over-year to ¥277.6 billion, reflecting significant changes in other comprehensive income.

Financial highlights

• 3Q FY2024 consolidated ordinary income rose to ¥4,151.0 bn (+¥302.4 bn YoY); net premiums written increased to ¥3,003.7 bn (+¥46.8 bn YoY).

• Net premiums written increased 1.6% year-over-year to ¥3,003.8 billion; investment income surged 64.9% to ¥674.1 billion.

• Consolidated net income for 3Q FY2024 was ¥381.8 bn (+¥58.8 bn YoY); adjusted consolidated profit was ¥235.6 bn.

• Operating, general, and administrative expenses rose 7.2% to ¥524.9 billion.

• Domestic P&C adjusted profit fell to ¥45.7 bn (–¥29.2 bn YoY), while overseas insurance/reinsurance rose to ¥151.1 bn (+¥22.4 bn YoY).

• Investment profit (Sompo Japan) for 3Q FY2024 was ¥64.1 bn, with gains on strategic stock sales of ¥223.4 bn.

• Net income per share was ¥391.27, up from ¥325.60, reflecting a 3-for-1 stock split.

• Total assets stood at ¥14,783.2 billion, down ¥49.5 billion from March 31, 2024; net assets increased by ¥68.8 billion to ¥2,937.1 billion.

Outlook and guidance

• Adjusted consolidated profit for FY2024 is expected to reach ¥270.0 bn, up ¥15.0 bn from the initial forecast, mainly due to overseas growth.

• Full-year consolidated net income forecast is ¥400.0 bn, with overseas insurance/reinsurance expected to contribute ¥194.0 bn in adjusted profit.

• Full-year net income attributable to shareholders is forecast at ¥400.0 billion, down 3.9% from the prior year; ordinary profit is projected at ¥550.0 billion, up 12.7%.

• Annual dividend per share forecast is ¥132.00 post-stock split.

• Strategic holding stock reduction for FY2024 is expected to exceed the ¥400.0 bn forecast.