Japan Post Insurance (7181) Q2 2025 earnings summary

Executive summary

• Net income for the six months ended September 2024 rose 24.7% year-on-year to ¥62.8bn, driven by higher investment income, improved market conditions, and positive one-time items.

• Adjusted profit surged 66.6% year-on-year to ¥84.3bn, reflecting adjustments for increased policy reserves from new business.

• Ordinary profit increased 68.0% year-on-year to ¥166.9bn, supported by improved capital gains and the end of excess contingency reserve provisions.

Financial highlights

• Ordinary income for the period was ¥2,943.4bn, down 5.5% year-on-year.

• Core profit declined to ¥116.2bn due to higher first-year policy reserve costs from new policies.

• Investment income rose to ¥641.2bn, with a positive spread of ¥68.0bn, up ¥17.8bn year-on-year.

• Value of new business jumped 457.8% year-on-year to ¥37.7bn.

• Net income per share was ¥164.30, up from ¥131.78 year-on-year.

Outlook and guidance

• Full-year net income forecast revised upward to ¥120.0bn, and adjusted profit to approx. ¥142.0bn, mainly due to expected higher investment income.

• Dividend per share forecast for FY2025 is ¥104.00, up from ¥94.00 in FY2024.

• Treasury stock buyback up to ¥35.0bn announced, targeting up to 30 million shares (7.8% of shares outstanding).