Sompo (8630) Q4 2024 earnings summary

Executive summary

• FY2024 ordinary profit rose to ¥488.0bn from ¥49.5bn; parent-attributable net income increased to ¥416.1bn from ¥26.4bn.

• FY2023 adjusted consolidated profit reached a record ¥291.0bn, up ¥138.8bn YoY, with higher adjusted profit across all businesses.

Financial highlights

• FY2024 ordinary income grew 9.0% to ¥4,933.6bn; ordinary expenses fell ¥30.7bn to ¥4,445.6bn.

• Investment income rose 142.4% to ¥592.5bn and investment expenses fell 42.3% to ¥108.0bn.

• Net income was ¥418.1bn, including ¥2.0bn attributable to non-controlling interests; comprehensive income reached ¥1,061.8bn.

• FY2023 net premiums written were ¥3,690.4bn and life insurance premiums were ¥311.8bn.

Outlook and guidance

• FY2025 forecast: ordinary profit ¥320.0bn, down 34.4%; parent-attributable net income ¥230.0bn, down 44.7%; post-split EPS ¥232.88.

• FY2025 forecast assumes ¥110.0bn of domestic natural-disaster net incurred losses for Sompo Japan Insurance, excluding household earthquake insurance.

• FY2023 guidance forecast FY2024 adjusted consolidated profit of ¥255.0bn, with overseas growth expected to partly offset domestic P&C investment and cost pressures.

• FY2024 overseas adjusted profit was forecast at ¥190.0bn, up 16.5% YoY; domestic P&C adjusted profit was forecast at ¥15.0bn.