Overview of Results of Operations
Overview of Results of Operations for the fiscal year ended March 31, 2025
The global economy grew at a moderate pace in the fiscal year ended March 31, 2025, driven by the U.S. supported by robust consumer spending, despite tight monetary policy mainly in Europe and the U.S.
The Japanese economy recovered at a moderate pace, despite continued inflation, since corporate earnings, labor market, and income levels improved. However, the implications of the U.S. trade policy, persistent inflation, and financial/capital market fluctuations need to be closely monitored.
Under these circumstances, the consolidated financial results of Sompo Holdings Group (“SOMPO HOLDINGS”) for the fiscal year ended March 31, 2025 were as follows:
Ordinary income increased by 520.1 billion yen to 5,453.7 billion yen compared to the previous fiscal year, the components of which were underwriting income of 4,432.4 billion yen, investment income of 793.0 billion yen and other ordinary income of 228.2 billion yen. Meanwhile, ordinary expenses increased by 455.2 billion yen to 4,900.8 billion yen compared to the previous fiscal year, the components of which were underwriting expenses of 3,833.9 billion yen, investment expenses of 124.2 billion yen, operating, general and administrative expenses of 725.0 billion yen and other ordinary expenses of 217.5 billion yen.
As a result of the foregoing, Sompo Holdings, Inc. (the “Company”) reported ordinary profit, calculated as ordinary income minus ordinary expenses, of 552.9 billion yen, an increase of 64.8 billion yen from the previous fiscal year. The Company posted net income attributable to shareholders of the parent, after extraordinary items, net of income taxes and deferred income taxes and others, of 422.9 billion yen, an increase of 6.8 billion yen from the previous fiscal year.
Business results for each of the SOMPO HOLDINGS’ reporting segments were as follows:
(a)Domestic P&C insurance business
In the domestic P&C insurance business, net premiums written amounted to 2,301.7 billion yen, an increase of 53.8 billion yen from the previous fiscal year. The domestic P&C insurance business posted net income attributable to shareholders of the parent of 179.7 billion yen, an increase of 69.9 billion yen from the previous fiscal year.
(b)Overseas insurance business
In the overseas insurance business, net premiums written amounted to 1,714.8 billion yen, an increase of 272.3 billion yen from the previous fiscal year. Net income attributable to shareholders of the parent decreased by 44.1 billion yen to a net income of 193.5 billion yen compared to the previous fiscal year.
(c)Domestic life insurance business
In the domestic life insurance business, life insurance premiums written amounted to 316.6 billion yen, an increase of 7.5 billion yen from the previous fiscal year. The domestic life insurance business posted net income attributable to shareholders of the parent of 20.8 billion yen, an increase of 4.9 billion yen from the previous fiscal year.
(d) Nursing care business
Ordinary income increased by 5.4 billion yen to 182.6 billion yen compared to the previous fiscal year. Net income attributable to shareholders of the parent decreased by 1.4 billion yen to a net loss of 1.6 billion yen compared to the previous fiscal year.
