T&D (8795) Q2 2025 earnings summary

Executive summary

• Group adjusted profit reached ¥81.8 billion, up 46% year-on-year, hitting a record high for a half-year period, driven by increased interest and dividend income at domestic life insurers.

• Sales of new policies at all three life insurance companies exceeded plan, with annualized premiums of new policies up 11.4% year-on-year.

• Adjusted EPS rose 50.9% year-on-year, aided by share buybacks.

• Interim dividend of ¥40 per share resolved; annual dividend forecast at ¥80 per share, marking the 10th consecutive year of dividend increases.

• No change in full-year earnings or dividend forecasts for the year ending March 31, 2025.

Financial highlights

• Consolidated ordinary revenues rose 10.6% year-on-year to ¥1,658.9 billion, with insurance premium income up 21.6% to ¥1,363.9 billion.

• Group MCEV increased by ¥51.6 billion to ¥4,154.9 billion, mainly due to new business value accumulation and higher domestic interest rates.

• Consolidated profit attributable to owners of parent was ¥65.4 billion, up 52% year-on-year.

• Value of New Business was ¥87.6 billion, slightly down year-on-year.

• Adjusted EPS increased 50.9% year-on-year to ¥155.27.

Outlook and guidance

• Full-year consolidated forecasts remain unchanged: ordinary revenues ¥2,560.0 billion, ordinary profit ¥180.0 billion, profit ¥104.0 billion, group adjusted profit ¥117.0 billion.

• Annual dividend forecast maintained at ¥80 per share.

• Certainty of achieving the mid-term adjusted profit target of ¥130 billion is increasing.

• Share buyback of up to ¥50.0 billion announced, with ¥21.8 billion executed as of October 2024 (43.7% progress).

• Guidance may be revisited after Q3 results.