Japan Post Insurance (7181) Q3 2025 earnings summary

Executive summary

• Net income for the nine months ended December 31, 2024, rose 29.6% year-over-year to ¥84.4bn, driven by higher investment income, improved market conditions, and a positive spread.

• Adjusted profit surged 62.3% year-over-year to ¥106.3bn, reflecting adjustments for policy reserves and goodwill amortization.

• Ordinary profit rose 77.6% year-over-year to ¥222.7bn, driven by improved one-time profits and capital gains.

• New individual insurance policies increased 81.4% year-over-year, with annualized premiums from new policies up 125.9%.

• Value of new business jumped 337.7% year-over-year to ¥49.3bn, supported by higher interest rates and policy growth.

Financial highlights

• Ordinary profit rose to ¥221.9bn, up ¥95.8bn year-over-year, due to improved one-time profits and capital gains.

• Insurance premiums and others surged 61.7% year-over-year to ¥2,566.2bn, while investment income grew 3.7% to ¥909.1bn.

• Core profit declined by ¥7.2bn year-over-year to ¥162.5bn, impacted by increased first-year policy reserve costs.

• Positive spread improved by ¥35.8bn year-over-year to ¥88.8bn.

• Comprehensive income for the period was ¥131.9bn, down from ¥529.2bn in the prior year.

Outlook and guidance

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

• Ordinary profit forecast raised to ¥220.0bn, reflecting strong investment returns and policy sales.

• Annual dividend forecast is ¥104.00 per share, up from ¥94.00 in the previous year.

• Assumptions include stable hedging costs and interest rates, with 940K new policies and 1,780K cancellations expected.

• Full-year forecast for ordinary income is ¥6,130.0bn, down 9.1% year-over-year.