Overview of Results of Operations
Overview of Results of Operations for the Fiscal Year Ended March 31, 2026
The global economy grew at a moderate pace in the fiscal year ended March 31, 2026, led by the U.S. economy which was supported by robust consumer spending.
The Japanese economy continued to recover gradually, supported by improvement in corporate earnings as well as stable labor market and income conditions. However, many uncertainties remain about the economic outlook, including the situation in the Middle East, developments in U.S. trade policy, and the impact of associated financial/capital market fluctuations on the economy.
Under these circumstances, the consolidated financial results of Sompo Holdings Group ("SOMPO HOLDINGS") for the fiscal year ended March 31, 2026 were as follows:
Insurance service result increased by 284.1 billion yen to 588.2 billion yen compared to the previous fiscal year, the components of which were insurance revenue of 5,372.9 billion yen, insurance service expenses of 4,459.7 billion yen and income or expenses from reinsurance contracts held of (324.9) billion yen. Finance result increased by 225.1 billion yen to 344.9 billion yen compared to the previous fiscal year, the components of which were investment gains and losses of 582.9 billion yen and insurance finance gains and losses of (238.0) billion yen.
As a result of the foregoing, Sompo Holdings, Inc. ("the Company") reported net income before tax, calculated as sum of insurance service result, finance result and other income and expenses, of 843.2 billion yen, an increase of 512.9 billion yen from the previous fiscal year. The Company posted net income attributable to owners of parent, net of income tax expenses and others, of 640.0 billion yen, an increase of 396.9 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, insurance revenue amounted to 2,730.5 billion yen, an increase of 96.0 billion yen from the previous fiscal year. The domestic P&C insurance business posted net income attributable to owners of parent of 268.1 billion yen, an increase of 209.7 billion yen from the previous fiscal year.
(b)Overseas insurance business
In the overseas insurance business, insurance revenue amounted to 2,441.1 billion yen, an increase of 213.4 billion yen from the previous fiscal year. Net income attributable to owners of parent increased by 116.7 billion yen to a net income of 294.4 billion yen compared to the previous fiscal year.
(c)Domestic life insurance business
In the domestic life insurance business, insurance revenue amounted to 258.7 billion yen, an increase of 3.9 billion yen from the previous fiscal year. The domestic life insurance business posted net income attributable to owners of parent of 68.6 billion yen, an increase of 38.7 billion yen from the previous fiscal year.
(d) Nursing care business
Other revenue increased by 4.8 billion yen to 186.2 billion yen compared to the previous fiscal year. Net income attributable to owners of parent increased by 2.6 billion yen to a net income of 7.9 billion yen compared to the previous fiscal year.
