Japan Post Insurance (7181) Q2 2026 earnings summary

Executive summary

• Net income for the six months ended September 30, 2025, rose 49.3% year-over-year to ¥93.8bn, driven by a lower burden of regular policy reserves and improved market conditions.

• Ordinary profit increased 10.2% year-over-year to ¥183.8bn, supported by reduced expenses and improved operating environment.

• Adjusted profit increased 12.8% year-over-year to ¥95.0bn, reflecting adjustments for policy reserves and goodwill amortization.

• Comprehensive income surged to ¥613.5bn from a loss of ¥74.7bn in the prior year period, mainly due to significant gains on available-for-sale securities.

• Upward revision of full-year forecasts for FY26/3, with net income now expected at ¥159.0bn and adjusted profit at approx. ¥162.0bn.

Financial highlights

• Ordinary income for the period was ¥2,879.7bn, with ordinary profit at ¥183.8bn, up 10.1% year-over-year.

• Insurance premiums and others fell 36.5% year-over-year to ¥1,198.9bn, while investment income decreased 3.4% to ¥619.7bn; other ordinary income rose 156.2% to ¥1,061.1bn.

• Positive spread increased to ¥135.2bn, up ¥67.2bn year-over-year, as investment returns outpaced assumed rates.

• Value of new business declined 3.6% year-over-year to ¥36.4bn due to fewer new policies despite higher interest rates.

• Embedded Value (EV) rose 8.0% from March 2025 to ¥4,255.1bn, mainly from unrealized gains in domestic stocks.

Outlook and guidance

• Full-year net income forecast revised upward to ¥159.0bn, adjusted profit to approx. ¥162.0bn, and ordinary income to ¥5,740.0bn.

• Ordinary profit for the full year forecasted at ¥260.0bn (up 52.7% year-over-year).

• Net income per share forecasted at ¥427.95 for the full year.

• Dividend forecast for the year is ¥124.00 per share, with no revisions to the most recent forecast.

• Achievement rates for these targets at mid-year are 59–60%.