Tokio Marine Holdings (8766) Q4 2026 earnings summary

Executive summary

• Transitioned to IFRS accounting standards at the end of FY2025, revising KPI definitions and profit recognition, with results presented using both JGAAP and IFRS for comparability.

• Adjusted EPS grew at a CAGR of 11% (JGAAP 12%) from 2023–2026, with robust profit growth but flat ROE due to increased net assets from equity sales.

• FY2025 saw steady top-line growth and solid bottom-line results, with adjusted net income up year-on-year excluding capital gains from equity sales.

• Ordinary income rose 5.1% year-over-year to ¥8,872.3 billion, driven by growth in underwriting and investment income, but net income attributable to owners fell 7.1% due to higher expenses.

• The group expanded both domestic and international business, but faced increased costs and a complex risk environment.

Financial highlights

• Group top-line grew +1% year-on-year, with international P&C up +6% and Japan P&C up +3%.

• Adjusted net profit reached JPY 711.6 billion, up 17% year-on-year, driven by benign natural catastrophes and lower capital losses.

• Normalized adjusted net profit (excluding one-time effects) was JPY 635.6 billion, down 6% year-on-year and below the full-year forecast.

• International net premiums written rose 6.1% YoY, led by North America, South/Central America, and Asia.

• Total assets increased to ¥31,961.9 billion as of March 31, 2026, up ¥724.5 billion from the prior year.

Outlook and guidance

• FY2026 group business volume projected to grow 8% year-on-year, with adjusted net profit forecasted at JPY 950 billion (+8% YoY).

• Dividend per share to rise 12% YoY to JPY 245, marking the 15th consecutive increase.

• Share buybacks of JPY 400 billion planned for FY2026, with additional repurchases possible to offset dilution.

• Fiscal year 2026 net income forecast is ¥830.0 billion, a 15.3% decrease year-over-year, with EPS projected at ¥441.83.

• Forecasts assume stable market conditions and natural catastrophe losses of ¥105.0 billion in Japan and ¥95.0 billion overseas.