Tokio Marine Holdings (8766) Q1 2026 earnings summary

Executive summary

• Adjusted net income excluding capital gains reached 33% of full-year projections, driven by JPY appreciation and strong international business performance.

• Including capital gains from business-related equity sales, adjusted net income progress was 45%, reflecting large equity sales in the period.

• Ordinary income rose 17.9% year-over-year to ¥2,268.5 billion, driven by strong underwriting and investment income.

• Net income attributable to owners of the parent surged 136.6% year-over-year to ¥466.8 billion.

• No revision to full-year projections, considering FX offset and upcoming natural catastrophe season.

Financial highlights

• Adjusted net income for 1Q FY2025 was JPY500.0bn, up JPY266.5bn year-over-year, mainly due to capital gains from equity sales.

• Net premiums written reached JPY1,346.0bn, up 4% year-over-year (+5% excl. FX).

• Life insurance premiums totaled JPY189.1bn, up 5% year-over-year (+7% excl. FX).

• Underwriting income increased 4.9% year-over-year to ¥1,527.7 billion; investment income jumped 54.5% to ¥653.7 billion.

• Gains on sales of securities soared 291.3% year-over-year to ¥379.5 billion.

Outlook and guidance

• Full-year projections remain unchanged despite robust 1Q performance, due to anticipated FX offset and natural catastrophe risks in later quarters.

• Fiscal year 2025 ordinary profit forecast is ¥1,270.0 billion, down 13.0% from the previous year.

• Net income attributable to owners of the parent is projected at ¥930.0 billion, down 11.9% year-over-year.

• Full-year dividend forecast is ¥210 per share, unchanged from the previous guidance.

• Auto rate revision (+8.5%) in October 2025 and further product revisions in January 2026 expected to accelerate earnings improvement.