Sompo (8630) Q1 2027 earnings summary

Executive summary

• Adjusted consolidated profit for 1Q FY2026 reached JPY 119.7 bn, a record high for the first quarter, up JPY 19.9 bn (20%) year-over-year, with steady progress toward the full-year forecast.

• Net income attributable to owners of parent rose 52.8% year-over-year to JPY 181.2 bn for the quarter ended June 30, 2026.

• Insurance revenue increased 28.0% year-over-year to JPY 1,616.9 bn.

• Finance result surged by JPY 79.8 bn to JPY 146.3 bn, driven by higher investment gains.

• Comprehensive income attributable to owners of parent reached JPY 265.5 bn, up from JPY 218.9 bn a year earlier.

Financial highlights

• Consolidated net income for 1Q FY2026 was JPY 181.1 bn, up JPY 62.5 bn YoY, supported by market fluctuations and improved investment income.

• Insurance revenue for 1Q FY2026 was JPY 1,616.9 bn, up JPY 353.3 bn YoY; adjusted consolidated profit margin improved YoY.

• Net income before tax was JPY 240.3 bn, up JPY 89.5 bn year-over-year.

• Total assets as of June 30, 2026 were JPY 18,890.3 bn, up JPY 286.6 bn from March 31, 2026.

• Combined ratio for domestic P&C improved to 93.9% (down 2.1 pts YoY), with loss ratio down 1.5 pts and expense ratio down 0.7 pts.

Outlook and guidance

• FY2026 adjusted consolidated profit forecast is JPY 500.0 bn, with growth expected from domestic P&C profitability and Aspen consolidation.

• FY2026 consolidated net income forecast is JPY 490.0 bn, with overseas profit expected to rise and domestic P&C to remain robust.

• Full-year net income attributable to owners of parent is forecast at JPY 490.0 bn, a 23.4% decrease from the previous year.

• Basic earnings per share for the full year is projected at JPY 549.17.

• Annual dividend forecast is JPY 200 per share, with no revisions announced.