Qualitative Information Related to Consolidated Results of Operations
During the three months ended June 30, 2017, the global economy continued to gradually recover as a whole, including a steady business rebound in the U.S. The Japanese economy remained on a moderate recovery path, supported by a rebound in personal consumption, amid ongoing improvement in employment conditions.
Under these circumstances, the consolidated financial results of Sompo Holdings Group ("SOMPO HOLDINGS") for the three months ended June 30, 2017 were as follows:
Ordinary income increased by 164.1 billion yen to 1,014.5 billion yen compared with the same period last year, the components of which were underwriting income of 926.0 billion yen, investment income of 54.5 billion yen and other ordinary income of 33.9 billion yen. Meanwhile, ordinary expenses increased by 158.5 billion yen to 977.6 billion yen compared with the same period last year, the components of which were underwriting expenses of 780.4 billion yen, investment expenses of 6.3 billion yen, operating, general and administrative expenses of 161.3 billion yen and other ordinary expenses of 29.5 billion yen.
As a result of the foregoing, Sompo Holdings, Inc. (the "Company") reported ordinary profit, calculated as ordinary income minus ordinary expenses, of 36.9 billion yen, an increase of 5.5 billion yen from the same period last 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 27.0 billion yen, an increase of 7.0 billion yen from the same period last year.
Qualitative Information Related to Consolidated Financial Condition
Total assets as of June 30, 2017 amounted to 12,158.0 billion yen on a consolidated basis, an increase of 226.9 billion yen from March 31, 2017, due mainly to the issuance of corporate bonds.
Qualitative Information Related to the Forecasts of Consolidated Financial Results
For the fiscal year ending March 31, 2018, the Company is forecasting consolidated ordinary profit of 259.0 billion yen and net income attributable to shareholders of the parent of 183.0 billion yen. There is no change from the forecasts in the Summary of Consolidated Financial Results disclosed on May 19, 2017.