Overview of Results of Operations for the fiscal year ended March 31, 2023
During the fiscal year ended March 31, 2023, the global economy continued to recover at a moderate pace as the economic impact of COVID-19 diminished. However, downside risks to global growth increased, including the impact of elevated inflation and monetary tightening on overall consumption and capital expenditure, uncertainties about the situation in Ukraine, etc.
Economic and social activities in Japan returned to normality, consumer spending and capital expenditure recovered in the era with COVID-19, and aggregate corporate profits increased. Still, it is necessary to pay close attention to downside risks, including inflation, supply constraints, and financial market fluctuations.
Under these circumstances, the consolidated financial results of Sompo Holdings Group (“SOMPO HOLDINGS”) for the fiscal year ended March 31, 2023 were as follows:
Ordinary income increased by 439.6 billion yen to 4,607.1 billion yen compared to the previous fiscal year, the components of which were underwriting income of 4,090.7 billion yen, investment income of 325.7 billion yen and other ordinary income of 190.7 billion yen. Meanwhile, ordinary expenses increased by 632.6 billion yen to 4,484.6 billion yen compared to the previous fiscal year, the components of which were underwriting expenses of 3,597.9 billion yen, investment expenses of 113.7 billion yen, operating, general and administrative expenses of 598.4 billion yen and other ordinary expenses of 174.3 billion yen.
As a result of the foregoing, Sompo Holdings, Inc. (the “Company”) reported ordinary profit, calculated as ordinary income minus ordinary expenses, of 122.5 billion yen, a decrease of 192.9 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 91.1 billion yen, a decrease of 133.6 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 2,290.5 billion yen, an increase of 73.4 billion yen from the previous fiscal year. The domestic P&C insurance business posted net income attributable to shareholders of the parent of 55.0 billion yen, a decrease of 83.2 billion yen from the previous fiscal year.
(b)Overseas insurance business
In the overseas insurance business, net premiums written amounted to 1,380.1 billion yen, an increase of 381.5 billion yen from the previous fiscal year. Net income attributable to shareholders of the parent increased by 5.8 billion yen to a net income of 48.0 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 310.8 billion yen, a decrease of 7.6 billion yen from the previous fiscal year. The domestic life insurance business posted net income attributable to shareholders of the parent of 1.0 billion yen, a decrease of 14.9 billion yen from the previous fiscal year.
(d) Nursing care & seniors business
Ordinary income increased by 15.0 billion yen to 151.6 billion yen compared to the previous fiscal year. Net income attributable to shareholders of the parent decreased by 0.5 billion yen to a net income of 0.7 billion yen compared to the previous fiscal year.
