Tokio Marine Holdings (8766) Q1 2025 earnings summary

Executive summary

• Adjusted net income rose by JPY68.8bn year-over-year, driven by strong international underwriting and investment gains, offset by higher natural catastrophe losses and increased auto loss costs in Japan P&C.

• Net premiums written increased 10% year-over-year (+4% excluding FX), with growth in both Japan and international segments; life insurance premiums fell 69% due to planned block reinsurance.

• International business outperformed projections, while Japan P&C progress was hampered by hail damage and FX effects, both already factored into full-year guidance.

Financial highlights

• Group adjusted net income for 1Q FY2024 reached JPY233.4bn, up from JPY164.5bn in 1Q FY2023.

• Net premiums written totaled JPY1,298.4bn, up 10% year-over-year; international segment grew 7% (excl. FX), Japan segment up 2%.

• Life insurance premiums dropped sharply due to block reinsurance, but underlying business excluding this effect was steady.

• Net incurred natural catastrophe losses rose by JPY38.0bn year-over-year to JPY68.1bn, mainly from Hyogo hail damage.

• Capital gains from sale of business-related equities in 1Q were approximately JPY104.0bn.

Outlook and guidance

• Full-year projections remain unchanged despite international outperformance, due to upcoming natural catastrophe season risks.

• Adjusted net income progress rate (excluding capital gains) was 28%, slightly below the 5-year average of 33%, but in line with expectations given one-off events.

• Japan P&C expects to boost progress through rate/product revisions and increased specialty insurance sales.