Overview of Results of Operations
Overview of Results of Operations for the fiscal year ended March 31, 2024
During the fiscal year ended March 31, 2024, global growth slowed in FY2023 as compared with FY2022 due to global monetary tightening to contain inflation, rise in geopolitical risks, etc. but the global economy remained resilient driven by the U.S. economy supported by strong labor market and robust consumer spending.
The Japanese economy continued to recover at a moderate pace supported by improvement in corporate earnings, labor market, and income levels as well as pent-up demand from COVID-19 restrictions to prevent the spread of infection, etc. despite downward pressure from a slowdown in international economic recovery. However, the implications of inflation and financial/capital market fluctuations on business conditions, etc. 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, 2024 were as follows:
Ordinary income increased by 407.7 billion yen to 4,933.6 billion yen compared to the previous fiscal year, the components of which were underwriting income of 4,099.4 billion yen, investment income of 592.5 billion yen and other ordinary income of 241.6 billion yen. Meanwhile, ordinary expenses decreased by 30.7 billion yen to 4,445.6 billion yen compared to the previous fiscal year, the components of which were underwriting expenses of 3,495.1 billion yen, investment expenses of 108.0 billion yen, operating, general and administrative expenses of 658.7 billion yen and other ordinary expenses of 183.7 billion yen.
As a result of the foregoing, Sompo Holdings, Inc. (the “Company”) reported ordinary profit, calculated as ordinary income minus ordinary expenses, of 488.0 billion yen, an increase of 438.5 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 416.0 billion yen, an increase of 389.6 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 2,247.9 billion yen, a decrease of 42.6 billion yen from the previous fiscal year. The domestic P&C insurance business posted net income attributable to shareholders of the parent of 109.7 billion yen, an increase of 54.6 billion yen from the previous fiscal year.
(b)Overseas insurance business
In the overseas insurance business, net premiums written amounted to 1,442.4 billion yen, an increase of 62.3 billion yen from the previous fiscal year. Net income attributable to shareholders of the parent increased by 254.4 billion yen to a net income of 237.6 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 309.0 billion yen, a decrease of 1.7 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, an increase of 14.9 billion yen from the previous fiscal year.
(d) Nursing care & seniors business
Ordinary income increased by 25.5 billion yen to 177.2 billion yen compared to the previous fiscal year. Net income attributable to shareholders of the parent decreased by 1.0 billion yen to a net loss of 0.2 billion yen compared to the previous fiscal year.
