T&D (8795) Q3 2025 earnings summary

Executive summary

• Group adjusted profit rose 44.9% year-on-year to ¥102.1 billion for the nine months ended December 31, 2024, with the full-year forecast revised upward to ¥130.0 billion, achieving the long-term vision target one year ahead of schedule.

• Profit attributable to owners of parent increased 83.8% year-over-year to ¥119.1 billion, supported by temporary valuation gains from Fortitude and strong group performance.

• Ordinary revenues for the nine months rose 7.1% year-over-year to ¥2,529.8 billion, driven by higher insurance premium income and growth across core subsidiaries.

• Sales of new policies across all three life insurance companies progressed favorably, with annualized premiums of new policies up 10.0% year-over-year to ¥167.3 billion.

• Upward revision of consolidated earnings forecasts for FY2024 was announced on February 14, 2025, reflecting robust business performance.

Financial highlights

• Ordinary revenues increased 7.1% year-over-year to ¥2,529.8 billion; income from insurance premiums rose 9.1% to ¥2,019.6 billion.

• Group MCEV increased by 6.1% from the previous fiscal year-end to ¥4,119.7 billion, reflecting value of new business and higher domestic interest rates.

• ESR (Economic Solvency Ratio) improved to 244% as of December 2024, reflecting increased surplus from new policy acquisitions.

• Consolidated solvency margin ratio improved to 1,023.4% from 995.7% at the previous fiscal year-end.

• Adjusted profit for T&D United Capital increased by ¥5.6 billion year-over-year to ¥12.3 billion, driven by Fortitude investment gains.

Outlook and guidance

• Full-year group adjusted profit forecast revised upward to ¥130.0 billion, a 25.5% increase year-over-year.

• FY2024 consolidated ordinary revenues forecast at ¥3,580.0 billion, ordinary profit at ¥190.0 billion, and profit attributable to owners of parent at ¥117.0 billion.

• Dividend forecast for the year ending March 31, 2025, is ¥80.00 per share, marking the 10th consecutive year of increases.

• Insurance income expected to remain flat next year, with operating expense increases offset by revenue.

• Interest and dividend income projected to increase next year, aided by lower FX hedging costs and bond reinvestment.