MS&AD Insurance Group (8725) Q1 2025 earnings summary

Executive summary

• Net premiums written rose by 160.0 billion yen year-over-year (+14.1%) to 1,296.2 billion yen, driven by strong growth in overseas subsidiaries.

• Ordinary profit for Q1 FY2024 surged 92.1% year-over-year to 298.6 billion yen, driven by lower ordinary expenses and strong investment gains.

• Net income increased by 92.6 billion yen year-over-year to 204.2 billion yen, achieving 33.5% of the annual forecast.

• Group adjusted profit reached 197.3 billion yen, up 83.7 billion yen year-over-year, with a 31.3% progress ratio against the annual forecast.

• A tender offer for own shares is underway to partially dissolve cross-shareholdings with Toyota Motor Corporation.

Financial highlights

• Ordinary income for Q1 FY2024 was 1,937.1 billion yen, down 2.0% year-over-year, while ordinary expenses fell 10.0% to 1,638.5 billion yen.

• Overseas subsidiaries saw net premiums written increase by 135.6 billion yen (+34.0%) and net income by 37.3 billion yen (+237.3%).

• Domestic non-life insurance net income increased by 49.4 billion yen, while domestic life insurance net income rose by 4.7 billion yen.

• Investment profit exceeded forecasts, mainly from higher interest/dividend income and gains on sales of securities.

• Net income per share (basic) was 128.82 yen, nearly doubling from 69.68 yen a year earlier (adjusted for stock split).

Outlook and guidance

• Group adjusted profit progress rates: domestic non-life 24.0%, domestic life 54.7%, international business 44.7%.

• Annual forecast for group adjusted profit is 630.0 billion yen.

• FY2025 full-year guidance projects ordinary profit of 871.0 billion yen (+109.2% YoY) and net income attributable to owners of the parent of 610.0 billion yen (+65.2% YoY).

• Dividend forecast for FY2025 is 145.00 yen per share (post-stock split basis).

• No guidance provided for consolidated ordinary income or Q2 earnings due to high sensitivity to natural disasters and market conditions.