T&D (8795) Q2 2027 earnings summary

Executive summary

• H1 adjusted profit reached a record ¥91.4bn, up 30.3% YoY; ordinary profit rose 24.5% to ¥136.7bn and parent-attributable profit rose 13.5% to ¥76.4bn.

• Higher interest and dividend income at domestic life insurers and earnings consolidated from European affiliate Viridium supported results.

Financial highlights

• Ordinary revenues fell 2.7% YoY to ¥1,672.9bn; insurance premiums were ¥1,247.8bn, down 7.7%.

• Domestic life premiums were ¥1,241.2bn, down 7.8%, while core profit rose 25.4% to ¥130.1bn.

• Investment income rose 13.8% to ¥371.3bn; investment expenses increased 28.0% to ¥161.4bn, including higher losses on securities sales.

• Ordinary expenses declined 4.5% to ¥1,536.2bn, including an 81.8% fall in policy-reserve provisions to ¥28.1bn.

• Comprehensive income fell 72.4% to ¥53.1bn, including ¥24.4bn of other comprehensive loss versus ¥124.3bn of income a year earlier.

Outlook and guidance

• FY27 forecasts were unchanged: ordinary profit ¥235.0bn, parent-attributable profit ¥135.0bn and adjusted profit ¥172.0bn.

• FY27 ordinary revenue forecast is ¥3,000bn and EPS forecast is ¥281.33; no forecast revisions were made.

• Annual dividend guidance remains ¥164 per share, comprising ¥82 at the second-quarter end and ¥82 at year-end.