MS&AD Insurance Group (8725) Q1 2025 earnings summary

Executive summary

• Net income attributable to owners of the parent rose 83% year-over-year to ¥204.2bn, with group adjusted profit up ¥83.7bn to ¥197.3bn.

• Ordinary profit for Q1 FY2024 surged 92.1% year-over-year to ¥298.6bn, driven by lower expenses and strong investment gains.

• Net premiums written rose 14.1% year-over-year to ¥1,296.2bn, supported by strong overseas and domestic non-life growth.

• Total assets increased to ¥27,168.2bn as of June 30, 2024, up ¥208.0bn from March 31, 2024.

• Progress ratios against annual forecasts: net income 33.5%, group adjusted profit 31.3%.

Financial highlights

• Overseas subsidiaries' net premiums written surged by ¥135.6bn (+34.0%), with Lloyd's and Reinsurance up ¥99.0bn (+48.5%).

• Domestic non-life net premiums written increased by ¥24.4bn (+3.2%), while domestic life insurance gross premiums fell by ¥19.4bn (-4.9%).

• Net income per share (basic) was ¥128.82, nearly doubling from ¥69.68 a year earlier (adjusted for stock split).

• Comprehensive income for the quarter was ¥147.0bn, down 71.9% year-over-year due to negative other comprehensive income.

• Net assets rose to ¥4,579.6bn, with a net asset ratio of 16.7%.

Outlook and guidance

• FY2025 full-year guidance projects ordinary profit of ¥871.0bn (+109.2% YoY) and net income of ¥610.0bn (+65.2% YoY).

• Group adjusted profit progress: domestic non-life 24.0%, domestic life 54.7%, international business 44.7%.

• Annual group adjusted profit forecast maintained at ¥630.0bn.

• Dividend forecast for FY2025 is ¥145.00 per share (post-stock split basis).

• No guidance for consolidated ordinary income or Q2 earnings due to high sensitivity to natural disasters and market conditions.