Tokio Marine Holdings (8766) Q3 2026 earnings summary

Executive summary

• Adjusted net income for 3Q FY2025 (excluding business-related equities) reached JPY557.7bn, 83% of the full-year target, driven by strong international underwriting and lower capital losses in North America, with domestic P&C benefiting from rate increases and fewer natural catastrophes.

• Ordinary income rose 6.8% year-over-year to ¥6,674.2 billion for the nine months ended December 31, 2025, driven by growth in both domestic and international insurance operations.

• Net income attributable to owners of the parent increased 0.5% year-over-year to ¥899.2 billion, despite a 1.4% decrease in ordinary profit to ¥1,202.4 billion.

• Full-year projections were revised upward: adjusted net income (excluding business-related equities) now expected at JPY752.0bn (+JPY80.0bn vs. previous), and including business-related equities at JPY1.23tn (+JPY120.0bn), reflecting lower Nat Cat losses, reduced capital losses, JPY depreciation, and higher investment income.

• Net premiums written grew 7% YoY in 3Q (5% excluding FX), with international business outperforming projections, while life insurance premiums declined 1% YoY due to higher surrenders and block reinsurance.

Financial highlights

• Net premiums written grew 7.3% year-over-year to ¥4,146.1 billion; deposit premiums from policyholders increased 24.4%.

• Adjusted net income (excluding business-related equities) increased by JPY85.2bn YoY, mainly from decreased Nat Cat losses and strong international performance.

• Adjusted net income (including business-related equities) decreased by JPY6.4bn YoY due to lower sales of equities.

• Underwriting income rose 6.3% to ¥4,824.9 billion, while underwriting expenses increased 8.5% to ¥4,119.4 billion.

• Investment income was up 1.3% to ¥1,601.3 billion; investment gains on separate accounts more than doubled.

Outlook and guidance

• Revised full-year forecast: ordinary profit of ¥1,380.0 billion (up 12.2% from previous forecast), net income attributable to owners of the parent of ¥1,020.0 billion (up 12.1%).

• Full-year adjusted net income (excluding business-related equities) revised up to JPY752.0bn, and normalized basis to JPY690.0bn, reflecting favorable FX, investment income, and lower Nat Cat losses.

• Net premiums written projected at ¥5,590.0 billion and life insurance premiums at ¥930.0 billion for fiscal 2025.

• Full-year net premiums written projected to rise 5% YoY (excluding FX), with international business forecasted to grow 5% YoY.

• Life insurance premiums full-year forecast revised downward due to higher surrenders and block reinsurance.