Japan Post Insurance (7181) investor relations material

Executive summary

• Net income reached a record high of ¥168.8bn, up 36.7% year-on-year, driven by lower policy reserve burdens and improved market conditions.

• Adjusted profit hit a record ¥171.5bn, up 17.7% year-on-year, after adjustments for policy reserves and goodwill amortization.

• Ordinary income decreased to ¥5,625.8bn, but ordinary profit rose to ¥271.9bn year-on-year.

• Comprehensive income rebounded sharply to ¥1,035.2bn from a loss in the prior year, driven by significant unrealized gains on available-for-sale securities.

• Embedded Value (EV) rose 8.0% to ¥4,256.5bn, mainly due to unrealized gains in domestic stocks.

Financial highlights

• Insurance premiums and others fell to ¥2,188.7bn, while investment income increased to ¥1,310.8bn, mainly due to higher gains on money held in trust.

• Investment expenses rose to ¥444.9bn, primarily from increased losses on sales of securities.

• Operating expenses fell by ¥18.0bn to ¥413.3bn, with commissions and sales commissions both declining.

• Net assets per share (post-split) were ¥3,833.13 and net income per share was ¥152.55.

• Ordinary profit rose to ¥271.9bn, up ¥101.6bn year-on-year.

Outlook and guidance

• Adjusted profit for FY27/3 is forecast at approximately ¥155.0bn, reflecting stable investment income despite a decrease in policies in force.

• Net income for FY27/3 is projected to decrease to ¥141.0bn, mainly due to lower core profit from life insurance activities.

• Dividend per share for FY27/3 is forecast at ¥50 (¥150 before stock split), with a medium-term payout ratio target of 55%.

• The company executed a 3-for-1 stock split effective April 1, 2026, to improve liquidity and broaden the investor base.

• Amendments to the Articles of Incorporation increased authorized shares to 4.4 billion.