Sompo (8630) Q4 2025 earnings summary

Executive summary

• Achieved record-high profit for two consecutive years, with FY2024 adjusted consolidated profit at JPY 334.3 billion and consolidated net income at JPY 422.9 billion, mainly driven by overseas business and favorable FX effects.

• Market capitalization increased by 30% to JPY 4.2 trillion, with a long-term vision to double adjusted profit and market cap by 2030.

• Shareholder returns for FY2024 totaled JPY 385.9 billion, including dividends and share buybacks, up JPY 210.0 billion year-over-year.

• The company implemented a 3-for-1 stock split on April 1, 2024.

• Focus remains on resilience, growth investment, and execution to achieve JPY 500 billion adjusted profit and JPY 6 trillion market cap.

Financial highlights

• Adjusted consolidated profit reached a record JPY 334.3 billion in FY2024, up JPY 43.3 billion year-over-year.

• Consolidated ordinary income rose to JPY 5,453.7 billion, up JPY 520.1 billion year-over-year.

• Net premiums written increased to JPY 4,016.5 billion, up JPY 326.1 billion year-over-year.

• Adjusted EPS growth is tracking at a 14% CAGR, exceeding the initial 12% target.

• Adjusted PBR now exceeds 1.0, passing a key threshold.

Outlook and guidance

• FY2025 IFRS-adjusted consolidated profit is projected at JPY 363.0 billion, up JPY 39.5 billion year-over-year, with SOMPO P&C and overseas segments as primary growth drivers.

• Management targets IFRS-adjusted EPS CAGR above 12% and consolidated ROE of 13–15% by FY2026.

• Dividend per share for FY2025 is forecast at JPY 150, a 14% increase year-over-year, marking 12 consecutive years of dividend increases.

• Continued focus on organic and inorganic growth, with increased M&A pipeline and disciplined investment approach.

• Transitioning to IFRS for consolidated financial statements from FY2025.