Financial and ESG Highlights

Financial Highlights

Rise in Premiums Written

In fiscal 2019, the main increases in net premiums written were attributable to fire insurance and automobile insurance in the domestic P&C insurance business and to Sompo International in the overseas insurance business. Life insurance premiums written were steady thanks to an increase in business in force.


Plan to Increase Dividends for the Seventh Consecutive Year

With the aim of realizing even more attractive shareholder returns, in fiscal 2019 we changed the target range for the total payout ratio to 50%–100%. In fiscal 2020, we expect to increase dividends for the seventh consecutive year. Going forward, our basic policy is to continue raising dividends.


Upward Medium-to-Long-Term Trend in Capital Efficiency, Steady Reduction in Strategic Holding Stocks

As in fiscal 2018, domestic natural catastrophes impacted performance in fiscal 2019. However, adjusted consolidated profit remains on pace to increase steadily once the impact from natural catastrophes returns to a normal level. Further, we are continuing to reduce strategic holding stocks and enhance capital efficiency.
*1 Balance of the book value of listed shares owned by Sompo Japan Insurance Inc. (non-consolidated)

ESG Highlights

Promotion of Disaster Preparedness Educational Activities

Through the promotion of disaster preparedness educational activities, we will heighten the awareness of the general public, encourage correct understanding of disasters, and contribute to safety and peace of mind in daily life.

Training of Support Personnel for Individuals with Dementia

Our aim is to foster personnel who have a good understanding of dementia and can provide proper support to those with the condition.

Reduction of Environmental Burden throughout Our Value Chain

Aiming to achieve reductions in greenhouse gas emissions versus fiscal 2017 levels of 21% by fiscal 2030 and 51% by fiscal 2050, we are reducing environmental burden throughout our value chain

Proactive Employee Participation in Social Contribution Activities

A volunteer organization created by executives and employees, Sompo Chikyu Club, leads a variety of volunteer activities around Japan.

Advancement of Diversity and Inclusion

We view diversity as a management strategy that is indispensable for growth. Accordingly, we are taking measures to empower female employees and enable a variety of other personnel to realize their particular talents so that we are able to continue growing as a corporate group.
*2 Figures are as of the end of December of respective fiscal years for overseas consolidated subsidiaries and as of April 1 of the subsequent fiscal years for domestic operating companies.

Governance Structure Centered on Outside Directors

Outside directors form a majority on the Company’s Board of Directors. Moreover, the Company has built a system that facilitates constant improvement in the transparency and fairness of corporate governance.
Note: As of July 2020, the ratio of outside directors was 75%.

Consolidated Financial and ESG Indicators for Sompo Holdings


FY2017 FY2018 FY2019
Key Figures(Millions of yen)
 Ordinary Income
 Net Premiums Written (P&C Insurance)
 Life Insurance Premiums
 Ordinary Profit
 Net Income Attributable to Shareholders of the Parent
 Comprehensive Income
 
3,770,052
2,854,755
346,998
141,890
139,817
177,754
 
3,643,040
2,718,155
349,606
198,959
146,626
(54,460)
 
3,760,366
2,825,482
356,064
192,451
122,515
(77,806)
Per Share Information (Yen, U.S. dollars)
 Net Income
 Dividends
 (Of which, Interim)
 Diluted Net Income
 
361.39
110.0
55.0
361.09
 
392.26
130.0
65.0
391.96
 
334.12
150.0
75.0
333.89
Financial Condition(Millions of yen)
 Total Net Assets
 Total Assets
 Equity Ratio(%)
 Consolidated Solvency Margin Ratio (%)
 
1,916,210
11,948,323
15.8
862.5
 
1,779,911
12,018,254
14.6
859.8
 
1,612,584
11,977,836
13.3
856.1
Stock Information (Shares)
 Number of Shares Outstanding(Excluding Treasury Stock)
 
380,579,944
 
372,426,159
 
364,125,082
Adjusted Financial Indicators
 Adjusted Consolidated Profit (Billions of yen)
 Adjusted Consolidated ROE (%)
 
162.7
6.4
 
113.5
4.5
 
150.8
6.4
ESG indicators
 Participants in Disaster Preparedness Activities Conducted in Collaboration with NPOs and NGOs (People)
 Participants in Health and Welfare Education Programs (People)  Greenhouse Gas Emissions
 (Scope 1–3) (t-CO2)*1
 Employees Participating in Social Contribution Activities*2
 Ratio of Female Employees in ManagerialPositions*3(%)
 Ratio of Outside Directors (%)
 
 
14,836
 
2,680

178,581

35,848

20.7
33.3
 
 
15,486
 
14,404

172,527

39,297

21.3
33.3
 
 
14,622
 
17,023

163,637

36,336

23.8
63.6

Notes:

  1. Sompo Holdings carried out a reverse split of stocks to combine common stocks at a ratio of four shares to one share on October 1, 2011. Net income per share, dividends per share, and number of shares outstanding (excluding treasury stock) are calculated based on the assumption that the reverse split of stocks was executed at the beginning of fiscal 2010.
  2. Reflecting amendments to the “Accounting Standard for Business Combinations,” etc., since fiscal 2015 the presentation of “net income” has been amended to “net income attributable to shareholders of the parent.”
  3. From the end of fiscal 2011, the consolidated solvency margin ratio as the standard of consolidated financial soundness has been calculated in accordance with the related laws and regulations, including the Ordinance for Enforcement of the Insurance Business Act, revised on March 31, 2011. Above, the figures for fiscal 2012 and before and the figures for fiscal 2013 and after are calculated on a different basis, reflecting the law revision concerning the standards for the calculation of the solvency margin ratio that was enforced at the end of fiscal 2013. Figures are not presented for fiscal 2010.
  4. Diluted net income per share for fiscal 2010 and fiscal 2011 is not shown due to the recording of net loss per share.
  5. Since fiscal 2016, the definition of adjusted consolidated profit has been changed. (Fiscal 2015 figures have been recalculated and presented based on new standards.)
  6. U.S. dollar amounts are translated from yen at the rate of \108.83 = U.S.$1.00, the approximate rate prevailing at March 31, 2020.
    1. Figures are the total of Scope 1 (direct emissions due to use of gasoline, etc.), Scope 2 (indirect emissions from electricity and other energy sources), and Scope 3 (indirect emissions across entire value chains, including transport and business trips). The coverage of the survey is as follows.
      Fiscal 2012: The Company’s 27 consolidated subsidiaries
      Fiscal 2013: Sompo Japan Insurance Inc., including consolidated subsidiaries, and NIPPONKOA Insurance Co., Ltd., including consolidated subsidiaries
      Fiscal 2014: Sompo Japan Insurance Inc., including consolidated subsidiaries, NIPPONKOA Insurance Co., Ltd., including consolidated subsidiaries
      Fiscal 2015: The Company’s main consolidated subsidiaries and operating companies
      Fiscal 2016–fiscal 2019: The Company and its main consolidated subsidiaries (Sompo Care Inc. subject to calculation from fiscal 2017)
      Emissions in fiscal 2017 and fiscal 2018 were recalculated based on fiscal 2019 standards.
    2. Figures prior to fiscal 2013 shown for Sompo Japan Insurance Inc. and its Group companies
    3. Data for overseas consolidated subsidiaries as of December 31 in each fiscal year. Data for domestic operating companies as of April 1 in next fiscal year; record dates differ before fiscal 2013.

Adjusted Financial Indicators
Adjusted consolidated profit is a profit indicator that is meant to more accurately reflect business results and is calculated by adjusting consolidated net income based on JGAAP for catastrophic loss reserve and other items.
This indicator is used to determine shareholder returns.

Definition of Adjusted Consolidated Profit, Adjusted Consolidated ROE, etc. (Fiscal 2016–Fiscal 2019)

Calculation method
Adjusted profit for each business*5
Domestic P&C insurance*1 Net income
+ Provisions for catastrophic loss reserve (after tax)
+ Provisions for reserve for price fluctuation (after tax)
– Gains/losses on sales of securities and impairment losses on securities (after tax)
– Special factors (e.g., dividend from subsidiaries)
Overseas insurance Net income (including major non-consolidated subsidiaries)
Operating income is used for Sompo International Holdings.*2
Domestic life insurance Net income
+ Provision of contingency reserve (after tax)
+ Provision of reserve for price fluctuation (after tax)
+ Adjustment of underwriting reserve (after tax)
+ Deferral of acquisition cost (after tax)
– Depreciation of acquisition cost (after tax)
Nursing care & healthcare, etc.*3 Net income
Adjusted consolidated profit Total of above adjusted profits
Adjusted consolidated net assets Consolidated net assets (excluding life insurance subsidiary’s net assets)
+ Catastrophic loss reserve in domestic P&C insurance,etc. (after tax)
+ Reserve for price fluctuation in domestic P&C insurance (after tax)
+ Domestic life insurance adjusted net assets*4
Adjusted consolidated ROE Adjusted consolidated profit/Adjusted consolidated net assets
Note: The denominator is the average balance at the end/start of each fiscal year.
  1. The total of Sompo Japan Insurance Inc.; SAISON AUTOMOBILE AND FIRE INSURANCE COMPANY, LIMITED (including former Sonpo 24 Insurance Company Limited); Sompo Japan Partners Inc.; Sompo Japan DC Securities Inc.; Sompo Risk Management Inc. (for fiscal 2017 and after); Mysurance Inc.; DeNA SOMPO Mobility Co., Ltd.; akippa Inc.; and DeNA SOMPO Carlife Co., Ltd.
  2. The adjusted profit of Sompo International Holdings is defined as operating income net of fluctuating, one-time factors (Operating income = Net income − Net foreign exchange gains/losses − Net realized and unrealized gains/losses on sales of securities as well as impairment losses/valuation gains on securities − Net impairment losses recognized in earnings, etc.).
  3. The total of Sompo Care Inc. (the former Sompo Care Message Inc. and Sompo Care Next Inc.); Cedar Co., Ltd. (until fiscal 2018); Sompo Health Support Inc.; Sompo Asset Management Co., Ltd.; Prime Assistance Inc.; Sompo Warranty Inc.; Palantir Technologies Japan K.K.; FRESHHOUSE CO., LTD.; and Wellness Communications Corporation.
  4. Domestic life insurance adjusted net assets = Net assets (JGAAP) + Contingency reserve (after tax) + Reserve for price fluctuation (after tax) + Adjustment of underwriting reserve (after tax) + Non-depreciated acquisition cost (after tax)
  5. Adjusted profit for each business from fiscal 2018 excludes one-time profits/losses and special factors, such as dividends received from subsidiaries.

External Recognition of ESG Initiatives

We have been actively involved in ESG initiatives from an early stage, and our initiatives have been recognized by various institutions globally, as demonstrated by our inclusion in socially responsible investment (SRI) indices. (As of July 1, 2020)