Sompo (8630) Q4 2025 earnings summary

Executive summary

• Achieved record-high adjusted consolidated profit of JPY 334.3 billion in FY2024, with market cap rising 30% to JPY 4.2 trillion year-over-year, mainly driven by overseas business and favorable FX effects.

• Consolidated net income for FY2024 was JPY 422.9 billion, an increase of JPY 6.8 billion from the previous year, also a record high.

• Two consecutive years of record profits and 29 share price highs, driven by strong EPS growth and ongoing ROE improvement efforts.

• Strategic focus on resilience, growth investment, and execution to reach JPY 500 billion adjusted profit and JPY 6 trillion market cap by 2030.

• Group reorganization established Sompo Holdings Osame (P&C) and Sompo Wellbeing (life/nursing care) to accelerate decision-making and synergies.

Financial highlights

• Adjusted EPS growth is outpacing expectations, currently at a 14% CAGR, above the 12% target.

• FY2024 consolidated ordinary income rose to JPY 5,453.7 billion, up JPY 520.1 billion year-over-year.

• Net premiums written increased to JPY 4,016.5 billion, up JPY 326.1 billion year-over-year.

• Dividend per share planned at JPY 150 for FY2025, a 14% increase, in line with EPS growth and marking 12 consecutive years of dividend increases.

• Strategic equity holdings sales accelerated, providing additional capital buffer.

Outlook and guidance

• Committed to doubling adjusted profit and market cap by 2030, with accelerated resilience and connectivity initiatives.

• FY2025 IFRS-adjusted consolidated profit is projected at JPY 363.0 billion, up JPY 39.5 billion year-over-year, with SOMPO P&C and overseas segments as primary growth drivers.

• Organic growth alone expected to bring ROE to 11-11.5% by FY2026; M&A and capital policy adjustments may be used to reach 13%.

• Investment income expected to remain flat due to anticipated rate cuts, with assets under management projected to grow.

• Transitioning to IFRS for consolidated financial statements from FY2025.