MS&AD Insurance Group (8725) Q4 2026 earnings summary

Executive summary

• Group adjusted profit (excluding gains from sales of strategic equity holdings) rose by ¥288.2bn year-over-year to ¥607.6bn for FY2025, with net income up ¥95.6bn to ¥787.3bn.

• Ordinary income rose 14.9% year-over-year to ¥7,653.0bn, with ordinary profit up 20.6% to ¥1,120.2bn.

• Comprehensive income reached ¥1,219.9bn, a significant turnaround from a loss in the prior year.

• Domestic non-life insurance profit increased by ¥119.7bn, driven by higher premiums and lower catastrophe losses, while international business profit rose by ¥162.1bn.

• A merger agreement was finalized between MSI and ADI, effective April 1, 2027, to strengthen the domestic non-life insurance business.

Financial highlights

• Net premiums written in non-life insurance grew by ¥330.4bn, led by overseas subsidiaries; domestic non-life premiums rose by ¥122.6bn to ¥3,269.6bn.

• Net income per share (basic) increased to ¥528.87 from ¥445.52 year-over-year.

• Return on equity improved to 18.0% from 16.3% year-over-year.

• Total assets grew to ¥28,640.8bn, up ¥2,399.5bn from the previous year; net assets rose to ¥4,825.1bn.

• Group adjusted profit for FY2025 was ¥1,000.9bn, up ¥269.1bn year-over-year.

Outlook and guidance

• FY2026 adjusted profit forecast is ¥800.0bn, down ¥118.7bn year-over-year, mainly due to lower gains from sales of strategic equity holdings.

• Net income attributable to owners of the parent is forecast at ¥425.0bn for the year ending March 31, 2027, under IFRS.

• Annual dividend for FY2026 is projected at ¥170 per share, with a planned share buyback of ¥80bn during the interim period.

• The group expects incurred losses from new domestic natural catastrophes of ¥150.0bn.

• No significant market fluctuations are assumed in the forecast.