Sompo (8630) Q4 2026 earnings summary

Executive summary

• Adjusted consolidated profit for FY2025 reached a record ¥535.2 billion, up ¥211.8 billion year-over-year, surpassing the FY2030 target ahead of schedule, with earnings growth across all business segments and improved profitability in domestic P&C and lower catastrophe losses.

• Consolidated net income for FY2025 surged by ¥396.9 billion to ¥640.0 billion, a record high, with net income attributable to owners of parent rising 163.3% to ¥640.1 billion.

• All major business segments posted higher revenues and profits, with especially strong gains in domestic and overseas insurance operations.

• FY2025 outperformed initial forecasts by ¥172.2 billion, mainly due to improved underlying profitability and lower catastrophe losses.

• Total assets increased by ¥2,713.6 billion to ¥18,603.7 billion, and total equity rose by ¥1,064.8 billion to ¥5,291.0 billion.

Financial highlights

• Insurance revenue for FY2025 was ¥5,372.9 billion, up ¥307.4 billion year-over-year; FY2026 forecast is ¥6,410.0 billion, up ¥1,037.0 billion.

• Net income before tax jumped 155.3% year-over-year to ¥843.2 billion.

• Domestic P&C adjusted profit for FY2025: ¥219.4 billion (+¥95.9 billion YoY); Overseas adjusted profit: ¥265.3 billion (+¥105.5 billion YoY).

• Nursing Care adjusted profit for FY2025: ¥12.8 billion (+¥3.6 billion YoY); FY2026 forecast: ¥14.0 billion.

• Basic and diluted EPS increased to ¥701.03 from ¥250.90 year-over-year.

Outlook and guidance

• FY2026 adjusted consolidated profit projected at ¥500.0 billion, up ¥62.4 billion on a normalized basis, excluding one-off catastrophe tailwind.

• Dividend per share for FY2026 is projected at ¥200, marking the 13th consecutive year of dividend growth.

• Forecast for FY2027: net income attributable to owners of parent of ¥490.0 billion, a 23.4% decrease year-over-year.

• Assumes no major changes in market rates, exchange rates, or stock prices; expects ¥110.0 billion in domestic natural disaster losses.

• Further profit growth expected from domestic P&C (auto and fire insurance) and full-year contribution from Aspen in overseas business.