| Indicator | Current Period | Prior Period | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥56015.0B | ¥52862.1B | +6.0% |
| Operating Income / Operating Profit | - | - | - |
| Profit Before Tax | ¥8432.3B | ¥3302.8B | +155.3% |
| Net Income / Net Profit | ¥6429.6B | ¥2452.1B | +162.2% |
| ROE | 12.2% | 5.8% | - |
The fiscal year ended March 2026 reported Revenue of ¥56,014.96B (YoY +¥3,152.86B +6.0%), Operating Income (excluding equity-method gains/losses) of ¥6,406.67B (YoY +¥3,731.37B +139.4%), Ordinary Income equivalent (Profit Before Tax) of ¥8,432.26B (YoY +¥5,019.47B +155.3%), and Net Income of ¥6,429.55B (YoY +¥3,977.45B +162.2%), delivering substantial profit growth. Insurance revenue was ¥53,729.21B (YoY +¥3,075.01B +6.1%), and insurance service profit expanded to ¥5,882.90B (prior year ¥3,041.62B). In addition, investment gains increased to ¥5,829.66B (prior year ¥3,271.68B), driving Financial Income to ¥3,449.07B (prior year ¥1,197.34B) and producing double-digit profit growth. Net profit margin improved to 11.5% (prior year 4.6%), an improvement of approximately +690bp, and ROE expanded to 13.7% (prior year 5.8%), about 2.4x.
[Revenue] Insurance revenue was ¥53,729.21B (+6.1%), with Domestic P&C Insurance ¥26,854.96B and Overseas Insurance ¥24,287.17B, showing revenue growth both domestically and internationally. By product, Motor insurance was ¥14,129.48B (+6.3%) and Fire insurance ¥1,936.95B (+3.4%) performed steadily. "Other," mainly driven by overseas insurance, increased by ¥999B YoY to ¥22,840.81B. By geography, domestic revenue was ¥31,390.14B and overseas ¥24,624.82B, raising the overseas ratio to 44% and improving geographic diversification of revenue. Other operating revenue was ¥2,285.75B (prior year ¥2,206.89B), reflecting growth in the nursing care business.
[Profitability] Insurance service profit expanded to ¥5,882.90B as underwriting profitability improved. Reinsurance results improved to ▲¥3,249.14B (prior year ▲¥3,602.32B), and insurance financial costs (net) increased to ▲¥3,054.19B (prior year ▲¥2,727.08B). However, Other investment gains of ¥4,910.52B (prior year ¥2,358.52B, +108.2%) grew substantially, resulting in total investment gains of ¥5,829.66B (prior year ¥3,271.68B) and Financial Income expanding to ¥3,449.07B (prior year ¥1,197.34B, +188.1%). SG&A increased to ¥1,419.16B (prior year ¥913.90B, +55.3%), but revenue increases from both underwriting and investment outpaced expense growth. A reversal in equity-method gains/losses to ¥35.71B (prior year ▲¥247.49B) also contributed, leading to Profit Before Tax of ¥8,432.26B (+155.3%) and Net Income of ¥6,429.55B (+162.2%). Impairment losses were limited at ¥62.83B, so one-off impacts on profit were constrained. In conclusion, the company achieved both revenue and profit growth.
The Domestic P&C Insurance Business reported Operating Income of ¥2,681.12B (prior year ¥583.38B, +359.6%), maintaining the largest asset base at ¥64,441.35B while showing notable underwriting improvement and increased asset management gains. The Overseas Insurance Business had Operating Income of ¥2,944.89B (prior year ¥1,777.71B, +65.7%), with assets expanding to ¥81,643.39B, reflecting improved presence in overseas markets directly contributing to earnings. The Domestic Life Insurance Business swung to Operating Income of ¥686.05B (prior year ¥298.76B, +129.6%), with assets of ¥32,972.9B and steady performance. The Nursing Care Business posted Operating Income of ¥79.51B (prior year ¥53.03B, +49.9%) with assets of ¥431.191B, demonstrating contribution as a growth driver. Other segments reversed to Operating Income of ¥13.19B (prior year ▲¥275.51B), aided by efficiency improvements in digital-related and asset management businesses.
[Profitability] Net profit margin improved to 11.5% (prior year 4.6%), approximately +690bp, and ROE reached 13.7% (prior year 5.8%), the highest in the past three years. DuPont decomposition yields an implied ROE from Net Profit Margin 11.5% × Total Asset Turnover 0.301 × Financial Leverage 3.96x, with the dramatic improvement in net profit margin being the main driver. Ordinary Income equivalent (Profit Before Tax) margin was 15.1%, indicating core earnings power established through both underwriting and investment. [Cash Quality] Operating Cash Flow was ¥7,064.19B versus Net Income ¥6,429.55B, producing an Operating CF / Net Income ratio of 1.10x, a healthy level; the accrual ratio was ▲0.4%, indicating strong cash backing of earnings. Operating CF subtotal including depreciation of ¥1,072.86B was ¥5,337.93B, and after working capital movements, real cash-generation capability was confirmed. [Investment Efficiency] Capital expenditures were ¥347.72B, 0.62% of Sales, an efficient level for an insurance company. Most of the Investing CF ▲¥2,329.14B related to turnover in investment securities: acquisitions ▲¥32,217.59B and sales/redemptions ¥36,027.63B. [Balance Sheet Soundness] Equity Ratio improved to 27.8% (prior year 26.5%), and D/E ratio was 2.52x — high but consistent with insurance ALM-driven leverage. Net interest results remained strongly positive with interest income ¥3,819.51B against interest expense ¥248.57B.
Operating CF was ¥7,064.19B (prior year ¥5,730.09B, +23.3%). Starting from Profit Before Tax ¥8,432.26B, adjustments included depreciation ¥1,072.86B, investment gains adjustment ▲¥5,976.35B, increase in insurance contract liabilities ¥2,068.90B, increase in reinsurance contract assets ▲¥858.18B, producing a subtotal of ¥5,337.93B. Adding interest and dividends received ¥4,319.81B and deducting corporate tax payments ▲¥2,344.98B resulted in the reported figure. Investing CF was ▲¥2,329.14B: despite net inflow from sales/redemptions ¥36,027.63B versus acquisitions of investment securities ▲¥32,217.59B, cash outflows included subsidiary acquisitions ▲¥3,003.45B (5.4% of sales, expansion of M&A), capital expenditures ▲¥347.72B, and reverse repurchase agreements ▲¥360.65B. Financing CF was ▲¥4,126.97B, with dividend payments ▲¥1,400.17B and share buybacks ▲¥2,292.90B totaling ▲¥3,693.07B as the core of shareholder returns. Coverage of total shareholder returns by Free Cash Flow of ¥4,735.05B was about 1.28x, indicating ample headroom. Cash and cash equivalents increased by ¥1,073.68B to ¥11,349.96B, with foreign exchange translation effects of ¥465.59B also supporting liquidity.
Of Net Income ¥6,429.55B, Insurance Service Profit ¥5,882.90B and Financial Income ¥3,449.07B are the pillars of recurring earnings, and the reversal in equity-method gains/losses to ¥35.71B (prior year ▲¥247.49B) also contributed to earnings recovery. Other revenue was ¥275.06B versus Other expenses ¥1,831.62B, a net excess expense of ▲¥1,556.56B, but even including impairment losses of ¥62.83B, one-off losses were limited to under 1% of the total. Investment gains of ¥5,829.66B consisted of interest income ¥1,065.82B and Other investment gains ¥4,910.52B; while market-driven and volatile, the establishment of underwriting surpluses has stabilized the earnings base. Comprehensive income was ¥13,360.35B, with Other Comprehensive Income of ¥6,930.80B driven mainly by valuation gains on capital-type financial instruments ¥4,339.62B and differences from changes in insurance contract discount rates ¥3,888.45B. Comprehensive income significantly exceeded net income, indicating balance sheet expansion on a book-value basis. The accrual ratio was ▲0.4%, indicating cash generation outpacing profits and solid earnings quality.
The full-year guidance is Net Income attributable to owners of the parent ¥490.0B, EPS ¥549.17, and annual dividend ¥100. The actual result of ¥640.086B exceeded guidance by more than ¥150.0B (progress ratio approximately 130.6%), as investment gains and underwriting improvements outperformed assumptions. The conservatism in guidance reflects a cautious stance assuming normalization of investment gains and natural disaster costs, estimating next year’s profit level at ▲23.7% versus the actual results. The guidance dividend ¥100 is conservative relative to the actual ¥150, but given FCF coverage of 3.38x and capital headroom, there is flexibility for upside.
Annual dividend was ¥150 (interim ¥75 / year-end ¥75) with total dividends of ¥1259.68B and a Payout Ratio of 21.4% (21.8% when based on dividend cash outflow ¥1,400.17B), a conservative level. Share buybacks totaled ¥2,292.90B (4.1% of sales), bringing total shareholder returns to ¥3,693.07B and a Total Return Ratio of approximately 57.5% relative to Net Income. Dividend coverage by FCF was 3.38x and total return coverage approximately 1.28x, indicating high sustainability. Treasury stock purchases during the period were 41.99 million shares with 21.96 million shares cancelled, resulting in 934.22 million shares outstanding (8,922.4 million shares after deducting treasury stock) — improving per-share value. The guidance dividend of ¥100 is conservative versus actuals, but given cash generation and capital flexibility there is room for dividend increases.
Risk of higher loss ratio due to frequent natural disasters: With insurance contract liabilities of ¥10,737.677B, occurrence of large-scale disasters such as typhoons and earthquakes could cause a surge in claim payments, compressing underwriting surpluses and temporarily worsening loss ratios. Although reinsurance contract assets of ¥2,194.887B provide some risk transfer, losses exceeding reinsurance coverage would sharply reduce profitability.
Earnings volatility due to fluctuations in investment gains: Investment securities of ¥124,518.75B (66.9% of total assets) are subject to valuation changes that directly affect profits. This fiscal year, Other investment gains of ¥4,910.52B boosted earnings, but in periods of rising rates or widening credit spreads valuation losses could occur and significantly reduce Net Income. Of the comprehensive income ¥13,360.35B, valuation differences account for approximately ¥6,931B, demonstrating high market sensitivity.
Capital adequacy risk from elevated leverage: D/E ratio of 2.52x is within an acceptable range for insurers but near the upper bound. With total capital ¥5,291.009B against total liabilities ¥13,312.694B, leverage is high. If market deterioration causes asset write-downs while insurance liabilities increase concurrently, the Equity Ratio of 27.8% could deteriorate quickly, potentially shrinking buffers against solvency regulations.
Profitability & Return
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| ROE | 13.7% | 3.8% (1.1%–16.8%) | +9.9pt |
| Net Profit Margin | 11.5% | 4.3% (0.6%–11.3%) | +7.2pt |
ROE exceeds the industry median 3.8% by +9.9pt and is close to the upper quartile 16.8%, placing profitability among the industry leaders.
Growth & Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 6.0% | 2.1% (-4.5%–6.9%) | +3.9pt |
Revenue growth outperformed the industry median 2.1% by +3.9pt and is close to the upper quartile 6.9%, maintaining a high-growth trajectory.
※ Source: Company aggregation
Notably, the company achieved substantial profit growth through both underwriting and investment, reaching record-high Net Profit Margin 11.5% and ROE 13.7%. Expansion of Insurance Service Profit to ¥5,882.90B reflects the results of rate revisions and risk selection, indicating that a structural earnings base is being established. Investment gains of ¥4,910.52B are market-dependent, but the stabilization of underwriting surpluses has improved earnings stability.
The high cash-generation capability indicated by Operating CF / Net Income 1.10x and accrual ▲0.4% is remarkable; with FCF ¥4,735.05B the company covered total shareholder returns ¥3,693.07B while retaining headroom. The Payout Ratio of 21.4% is conservative, suggesting scope for future dividend increases and continued share buybacks. Improvement in Equity Ratio to 27.8% and expansion of total capital to ¥5.29T supports the ability to balance growth investments and shareholder returns.
Subsidiary acquisitions via M&A totaling ¥3,003.45B contributed to expanding Overseas Insurance assets to ¥81.643B, enhancing geographic diversification of revenue. Goodwill and intangibles of ¥5,990.80B (11.3% of equity) are within acceptable ranges, allowing execution of growth strategy without impairing B/S soundness. However, leverage D/E 2.52x and market sensitivity of investment securities ¥124.51875B remain monitoring points; earnings volatility and solvency metrics under rate/market fluctuations should continue to be watched.
This report was automatically generated by AI analyzing XBRL financial statement data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information aggregated by the Company from public financial statements. Investment decisions should be made at your own discretion, and you should consult advisors as necessary.