Sony Financial Group (8729) Q1 2027 earnings summary

Executive summary

• Group consolidated adjusted net income for Q1 FY26 rose 43.6% year-over-year to ¥31.5 billion, driven by strong performance in life insurance, non-life insurance, and banking segments.

• Operating revenues for Q1 FY26 increased 10.5% year-over-year to ¥268.0 billion.

• Profit before income taxes for Q1 FY26 was ¥13.7 billion, reversing a loss of ¥34.1 billion in the prior year.

• Profit attributable to owners was ¥9.1 billion, compared to a loss of ¥24.4 billion a year earlier.

• Annualized premiums from new policies declined 6.5% year-over-year to ¥38.0 billion.

Financial highlights

• Life insurance business adjusted net income increased by ¥5.8 billion (+34.1% YoY) to ¥23.1 billion, supported by lower repo costs, higher investment income, and effective interest rate hedging.

• Non-life insurance business adjusted net income rose by ¥1.4 billion (+42.7% YoY) to ¥4.9 billion, with improved cost control and higher insurance finance income.

• Banking business adjusted net income surged by ¥2.3 billion (+126.3% YoY) to ¥4.2 billion, driven by improved net interest income and market operations.

• Basic and diluted EPS were ¥1.37, compared to a loss per share of ¥3.43 in the prior year.

• Total assets as of June 30, 2026, were ¥21,787.3 billion, up 4.9% from March 31, 2026.

Outlook and guidance

• FY26 group consolidated adjusted net income forecast remains unchanged at ¥110.0 billion.

• Dividend per share forecast for FY26 is maintained at ¥8.0.

• Profit before income taxes for FY26 is forecast at ¥37.0 billion, revised upward due to reduced bond sale losses and gains from equity-method investment disposals.

• FY2027 operating revenues are forecast at ¥1,070.0 billion, up 5.2% year-over-year.

• Adjusted net income for FY2027 is forecast at ¥110.0 billion, up 2.4% year-over-year.