Japan Post Insurance (7181) Q1 2025 earnings summary

Executive summary

• Ordinary profit rose 57.5% year-on-year to ¥68.1bn, driven by improved capital gains and reduced contingency reserve provision.

• Net income was essentially flat at ¥20.9bn, down 0.4% year-over-year, as capital gains were offset by reserve for price fluctuations.

• Adjusted profit, accounting for new policy reserve burdens, increased 59.3% year-on-year to ¥33.5bn.

• Ordinary income for the quarter was ¥1,465.4bn, down 8.1% year-over-year, with insurance premiums up 86.2% and investment income up 3.2%.

Financial highlights

• Insurance premiums and others reached ¥1,021.1bn, up 86.2% year-on-year.

• Investment income totaled ¥333.2bn, a 3.2% increase year-on-year.

• Core profit decreased to ¥43.4bn, mainly due to higher policy reserves from new policies.

• Net capital gains (losses) improved significantly to ¥29.9bn from ¥2.0bn a year ago.

• Comprehensive income dropped sharply to ¥87.4bn from ¥443.7bn a year ago.

Outlook and guidance

• Full-year ordinary profit forecast at ¥200.0bn, net income at ¥79.0bn, and adjusted profit at ¥91.0bn.

• Full-year forecast for ordinary income is ¥5,960.0bn (down 11.6% year-over-year).

• Assumptions include stable interest rates and stock prices, with 880,000 new policies and 1,770,000 cancellations expected.

• Adjusted profit will be used as the basis for shareholder returns from FY25/3.

• Annual dividend per share forecast raised to ¥104 from ¥94 in the previous year.