Tokio Marine Holdings (8766) Q2 2025 earnings summary

Executive summary

• 2Q FY2024 results were in line with projections, with net premiums written up 5.7% YoY (excl. FX) and life insurance premiums down 32.9% YoY (excl. FX) due to a reinsurance transaction by Japan Life.

• Ordinary income rose 16.0% YoY to ¥4,342.1 billion for the six months ended September 30, 2024, driven by growth in both domestic and international insurance operations.

• Net income attributable to owners of the parent surged 235.8% YoY to ¥688.5 billion, reflecting strong operational performance and investment gains.

• Adjusted net income for 2Q (excl. business-related equities) was JPY359.0bn (59% of original projection); including equities, JPY771.2bn (77% of projection).

• Comprehensive income declined 52.3% YoY to ¥422.8 billion due to negative other comprehensive income, mainly unrealized losses on securities.

Financial highlights

• Net premiums written for 2Q rose 10.1% (excl. FX: +5.7%); full-year projection revised to +5.3% YoY (excl. FX).

• Life insurance premiums for 2Q fell 28.7% (excl. FX: -32.9%); full-year projection revised to -15.9% YoY (excl. FX).

• Adjusted net income for 2Q (incl. business-related equities) was JPY771.2bn, up JPY495.6bn YoY.

• EPS (basic) for the period was ¥351.38, up from ¥103.38 a year earlier.

• Dividend forecast for FY2024 revised to ¥162.00 per share, up from ¥123.00 in FY2023.

Outlook and guidance

• Full-year adjusted net income (excl. capital gains) revised down by JPY82.0bn to JPY528.0bn due to higher CECL provisions for CRE loans.

• Including capital gains, full-year projection revised up by JPY40.0bn to JPY1.04tn, reflecting accelerated sales of business-related equities.

• FY2024 ordinary profit forecast revised to ¥1,240.0 billion (up 47.2% YoY); net income forecast to ¥880.0 billion (up 26.5%).

• Net income per share for FY2024 projected at ¥450.26.

• DPS for FY2024 set at JPY162, up JPY3 from the original plan.