Tokio Marine Holdings (8766) Q2 2025 earnings summary

Executive summary

• Underlying underwriting performance remained strong, especially in international markets like North America and Brazil, with brisk business and positive FX effects driving results.

• Ordinary income rose 16.0% year-over-year to ¥4,342.1 billion for the six months ended September 30, 2024, driven by growth in both domestic and international insurance operations.

• Net income attributable to owners of the parent surged 235.8% year-over-year to ¥688.5 billion, reflecting strong operational performance and investment gains.

• Full-year profit projection, including equity sales, was revised up to JPY 1.04 trillion, while actual basis profit excluding equity sales was revised down due to conservative CECL provisions for CRE loans.

• Shareholder return policy remains tied to profit growth, with DPS revised upward to JPY 162, marking the 13th consecutive dividend increase.

Financial highlights

• Net premiums written increased 10.1% year-over-year to ¥2,697.9 billion, driven by rate hikes in Japan and international markets.

• Life insurance premiums decreased 32.9% due to block reinsurance cession.

• Group adjusted net income as of Q2 was JPY 771.2 billion (JPY 369 billion excluding equity sales), achieving 77% and 59% of annual projections, respectively.

• EPS (basic) for the period was ¥351.38, up from ¥103.38 a year earlier.

• Dividend forecast for FY2024 revised to ¥162.00 per share, up from ¥123.00 in FY2023.

Outlook and guidance

• FY2024 ordinary profit forecast revised to ¥1,240.0 billion (up 47.2% year-over-year); net income forecast to ¥880.0 billion (up 26.5%).

• Full-year adjusted net income (excluding capital gains) revised down by JPY 82 billion to JPY 528 billion due to higher CECL provisions for CRE loans.

• Including capital gains, full-year projection revised up by JPY 40 billion to JPY 1.04 trillion, reflecting accelerated sales of business-related equities.

• Normalized basis profit projection for FY2024 remains unchanged from the original projection, excluding one-off impacts.

• DPS for FY2024 set at JPY 162, up JPY 3 from the original plan.