Japan Post Insurance (7181) Q3 2026 earnings summary

Executive summary

• Net income for the nine months ended December 31, 2025, rose 40.3% year-over-year to ¥118.4bn, driven by reduced policy reserve burdens and improved market conditions.

• Ordinary income for the period was ¥4,098.6bn, down 5.4% year-over-year, while comprehensive income surged 650.1% to ¥989.4bn due to unrealized gains on available-for-sale securities.

• Adjusted profit increased 13.2% year-over-year to ¥120.3bn, reflecting adjustments for policy reserves and goodwill amortization.

• Value of new business grew 9.1% year-over-year to ¥53.7bn, and embedded value (EV) rose 10.2% to ¥4,343.8bn, mainly due to higher domestic stock prices.

Financial highlights

• Ordinary profit increased to ¥234.4bn, and net income per share was ¥319.47, up from ¥220.58 in the prior year period.

• Insurance premiums and others fell 33.7% year-over-year to ¥1,700.7bn, while investment income rose 2.9% to ¥935.5bn.

• Net assets rose 27.2% year-over-year to ¥4,122.7bn, with net unrealized gains on available-for-sale securities up 58.4% to ¥2,457.5bn.

• Core profit attributable to life insurance activities increased to ¥128.9bn from ¥73.6bn year-over-year.

• Positive spread improved to ¥172.0bn, up ¥83.2bn year-over-year.

Outlook and guidance

• Full-year net income forecast revised upward to ¥159.0bn, and adjusted profit to approx. ¥162.0bn, reflecting higher core profit and positive spread.

• Achievement rates for net income and adjusted profit as of Q3 are 74.5% and 74.3% of the full-year forecast, respectively.

• Dividend per share forecast for FY26/3 is ¥124.00, with no revisions to the previously announced forecast.

• Market assumptions for FY26/3 include 10-year JGB yield at 1.82%, USD hedging cost at 2.60%, and FX rate at 148.9 yen/USD.