Overview of FY2021 Results

Overview of Results of Operations for the fiscal year ended March 31, 2022

During the fiscal year ended March 31, 2022, the global economy was hit hard by the global COVID-19 pandemic in the first half of the year, but it generally picked up after that with recovery continuing in the United States and Europe.
We see signs of economic recovery also in Japan, including industrial production and corporate profits, but there is earnings downside risk primarily caused by geopolitical risk, including an increase in raw material prices, financial market fluctuations, and supply-side constraints, which continues to require close attention.

Under these circumstances, the consolidated financial results of Sompo Holdings Group (“SOMPO HOLDINGS”) for the fiscal year ended March 31, 2022 were as follows:
Ordinary income increased by 321.1 billion yen to 4,167.4 billion yen compared to the previous fiscal year, the components of which were underwriting income of 3,656.8 billion yen, investment income of 338.4 billion yen and other ordinary income of 172.1 billion yen. Meanwhile, ordinary expenses increased by 220.7 billion yen to 3,851.9 billion yen compared to the previous fiscal year, the components of which were underwriting expenses of 3,099.4 billion yen, investment expenses of 37.3 billion yen, operating, general and administrative expenses of 570.3 billion yen and other ordinary expenses of 144.7 billion yen.
As a result of the foregoing, Sompo Holdings, Inc. (the “Company”) reported ordinary profit, calculated as ordinary income minus ordinary expenses, of 315.5 billion yen, an increase of 100.4 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 224.8 billion yen, an increase of 82.3 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 2,217.1 billion yen, an increase of 20.5 billion yen from the previous fiscal year, due to increased net premiums written in fire and allied insurance. The domestic P&C insurance business posted net income attributable to shareholders of the parent of 138.2 billion yen, an increase of 1.5 billion yen from the previous fiscal year.

(b)Overseas insurance business
In the overseas insurance business, net premiums written amounted to 998.5 billion yen, an increase of 271.5 billion yen from the previous fiscal year. Net income attributable to shareholders of the parent increased by 47.8 billion yen to a net income of 42.1 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 318.5 billion yen, a decrease of 21.7 billion yen from the previous fiscal year. The domestic life insurance business posted net income attributable to shareholders of the parent of 15.9 billion yen, a decrease of 3.4 billion yen from the previous fiscal year.

(d) Nursing care & seniors business
Ordinary income decreased by 1.9 billion yen to 136.6 billion yen compared to the previous fiscal year. Net income attributable to shareholders of the parent increased by 0.2 billion yen to a net income of 1.3 billion yen compared to the previous fiscal year.

Overview of Financial Condition as of March 31, 2022

Total assets as of March 31, 2022 amounted to 13,787.8 billion yen on a consolidated basis, an increase of 669.1 billion yen from March 31, 2021. Total net assets as of March 31, 2022 amounted to 2,040.7 billion yen on a consolidated basis, an increase of 9.6 billion yen from March 31, 2021.
Cash flows for the fiscal year ended March 31, 2022 were as follows:
Cash flows from operating activities resulted in a net inflow of 600.0 billion yen, a decrease of 26.1 billion yen from the previous fiscal year, due mainly to a decrease in life insurance premiums written and deposits of premiums by policyholders.
Cash flows from investing activities resulted in a net outflow of 348.5 billion yen, an increase of 10.9 billion yen from the previous fiscal year, due mainly to an increase in proceeds from sales of securities.
Cash flows from financing activities resulted in a net outflow of 170.1 billion yen, a decrease of 75.6 billion yen from the previous fiscal year, due mainly to a decrease in payables under securities lending transactions.
As a result, cash and cash equivalents at the end of the period were 1,207.3 billion yen, an increase of 89.5 billion yen from the end of the previous fiscal year.

  • linkedin
  • facebook
  • twitter
  • line