Tokio Marine Holdings (8766) Q2 2026 earnings summary

Executive summary

• First half of fiscal 2025 saw strong business momentum, with Japan P&C benefiting from low natural catastrophe losses and successful rate increases, and robust international underwriting, especially in North America and Brazil.

• Capital losses in North American credit were below expectations, and accelerated divestments led to JPY 580 billion in business-related equity sales in the first half.

• Net income attributable to owners of the parent decreased 0.2% year-over-year to ¥686.8 billion, while ordinary profit declined 6.1% to ¥880.3 billion.

• Profit forecast excluding equity gains was revised downward by JPY 28 billion to JPY 672 billion due to cross-currency effects and higher insurance liabilities in Asia life, but including equity gains, profit forecast was revised upward by JPY 10 billion to JPY 1.11 trillion.

• The global economic environment was mixed, with moderate recovery in the US, slowdown in China, and weak domestic demand in Japan.

Financial highlights

• Net premiums written in the first half increased by 4%, slightly below projections; life insurance premiums declined by 3% due to block reinsurance but are expected to rise 62% year-on-year.

• Group adjusted net income for the first half was JPY 755 billion; excluding equity sales, it was JPY 367.2 billion, with progress rates of 69% and 52% toward full-year projections, respectively.

• Total assets as of September 30, 2025, were ¥30,880.5 billion, down ¥356.8 billion from March 31, 2025.

• Net assets stood at ¥5,025.1 billion, with an equity ratio of 16.3%.

• Net income per share (basic) was ¥359.12 for the six months, up from ¥351.38 a year earlier.

Outlook and guidance

• Full-year net premiums written expected to increase 4%, and life insurance premiums to rise 62% year-on-year.

• Full-year forecast for fiscal 2025 revised to ordinary profit of ¥1,230.0 billion (down 15.8% year-over-year) and net income attributable to owners of the parent of ¥910.0 billion (down 13.8%).

• Normalized full-year profit, excluding one-off items, is projected to be JPY 20 billion below initial forecast due to lower Asia life profits and higher advertising at Tokyo Marine Direct.

• DPS for FY2025 increased by JPY 1 to JPY 211, a 23% year-on-year growth.

• Net income per share (forecast) is ¥476.96.