Tokio Marine Holdings,Inc. FY2026 Q2 Earnings Report

Financial Highlights

• Net Income: ¥684.66B
• EPS: ¥359.12

Income Statement

Balance Sheet

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Tokyo Marine Holdings (8766) reported FY2026 Q2 (cumulative) consolidated results under JGAAP with operating income of ¥880.3bn and net income of ¥686.8bn, essentially flat YoY (-0.2%). Many standard line items (revenue, gross profit, cash flows, and current items) were unreported in XBRL, so analysis focuses on the disclosed non-zero figures and insurer-specific context. Equity stood at ¥5.025tn against total assets of ¥30.881tn, implying financial leverage of roughly 6.15x, a level typical for a diversified insurer with large investment assets. Based on half-year net income and period-end equity, simple point-in-time ROE is approximately 13.7% (¥686.8bn / ¥5.025tn), and on a run-rate basis could be higher if earnings are seasonally back-half weighted; however, annualization carries uncertainty. EPS was ¥359.12, implying an average diluted share count of about 1.91bn shares for the period. The near equivalence of operating and ordinary income suggests limited net non-operating swings in the half, which often indicates disciplined investment risk or offsetting gains/losses. The reported income tax expense of ¥245.3bn versus ordinary income of ¥880.3bn implies a rough tax burden in the high 20s to low 30s percent range, though reconciliation to profit attributable to owners (¥686.8bn) indicates additional below-the-line items or minority interests that are not fully visible. Balance sheet leverage (debt-to-equity provided at 5.20x) and asset leverage are consistent with a large insurer’s liability-driven balance sheet; regulatory capital adequacy (e.g., SMR/ESR) is not disclosed here, limiting solvency inference. Cash flow data (OCF/ICF/FCF) were not reported, preventing direct earnings-to-cash conversion analysis. Dividends and payout metrics were also not disclosed, so dividend sustainability must be assessed indirectly from earnings capacity and capital structure. Overall profitability appears resilient with stable headline earnings despite market and catastrophe variability typical in the sector. Given the absence of underwriting metrics (combined ratio, loss ratio, expense ratio) and investment detail, it is not possible to disentangle the underwriting versus investment contribution to earnings. Nonetheless, the scale of earnings relative to equity indicates the group is operating at a double-digit ROE run-rate, consistent with management’s long-term capital efficiency focus. Key watchpoints into 2H include catastrophe losses, reserve developments, and investment market volatility, all of which can materially sway full-year results. Data limitations are material; the following analysis leverages only disclosed non-zero metrics and industry context for insurers.

Profitability Analysis

ROE decomposition: Point-in-time ROE ≈ 13.7% (Net income ¥686.8bn / Equity ¥5.025tn) for the first half; annualized ROE could be materially higher but is uncertain without seasonality and capital movements. DuPont components tied to NPM and asset turnover are not meaningful here because revenue and gross profit were unreported and insurers recognize premiums/investment income differently under JGAAP. Financial leverage is approximately 6.15x (Assets/Equity), which amplifies equity returns in line with the insurance model. margin_quality: Net income was essentially flat YoY (-0.2%), suggesting stable aggregate margins. With operating income equal to ordinary income (both ¥880.3bn), net non-operating impacts appear limited in the half. The tax charge of ¥245.3bn versus ordinary income implies a normalized tax burden, but the bridge to net income suggests additional below-the-line items or NCI effects not visible here. operating_leverage: Operating leverage in insurance is best assessed via expense ratios, which were not disclosed. The flat YoY net income despite macro volatility suggests controlled expense growth and/or balanced underwriting/investment contribution. Without premium volumes or combined ratio, we cannot quantify sensitivity of profits to topline.

Growth Assessment

revenue_sustainability: Premium revenue and investment income were not disclosed; therefore, sustainability of top-line drivers cannot be directly assessed. Tokio Marine’s diversified geographic and product mix historically supports steady premium growth, but confirmation for FY2026 1H is unavailable in this dataset. profit_quality: Stable net income (-0.2% YoY) indicates resilient earnings. The lack of large non-operating swings (operating ≈ ordinary income) hints at quality, but absence of underwriting ratios, realized/unrealized gains, and reserve movements prevents a definitive view on repeatability. outlook: Key determinants for 2H include catastrophe loss frequency/severity, reserve development in Japan/overseas P&C, interest-rate-driven investment income, and equity/credit market marks. Absent shocks, current run-rate supports solid full-year earnings, but volatility bands remain wide for insurers.

Financial Health

liquidity: Cash and cash equivalents, current assets, and current liabilities were unreported. Insurer liquidity typically relies on marketable securities and ALM practices rather than current ratios; no direct assessment can be made from the provided data. solvency: Total assets ¥30.881tn vs total liabilities ¥26.134tn and equity ¥5.025tn indicate a sizable capital base. Leverage (Assets/Equity) ≈ 6.15x and debt-to-equity 5.20x are in the normal range for a global insurer. Regulatory solvency metrics (e.g., SMR/ESR) are not provided; thus, statutory solvency cannot be evaluated here. capital_structure: Equity of ¥5.025tn underpins earnings capacity. Share count estimated at ~1.91bn (from EPS and net income). No information on hybrid capital, sub-debt maturities, or buybacks in the period was provided.

Cash Flow Quality

earnings_quality: Operating, investing, and financing cash flows were not disclosed; OCF/Net income and FCF cannot be computed. As such, accrual intensity, reserve cash dynamics, and investment cash realization cannot be assessed from this dataset. FCF_analysis: Free cash flow not available. For insurers, FCF is less indicative than underwriting cash generation and investment portfolio liquidity, both unreported. working_capital: Working capital metrics are not applicable in a traditional sense for insurers and were not reported. No conclusions can be drawn about short-term cash conversion cycles.

Dividend Sustainability

payout_ratio_assessment: Annual DPS and payout ratio were unreported, preventing a direct payout calculation against earnings. Based on half-year net income of ¥686.8bn, there appears to be capacity for distributions, but the absence of declared DPS precludes ratio-based assessment. FCF_coverage: FCF was not disclosed; FCF coverage of dividends cannot be evaluated. policy_outlook: No policy detail in this dataset. Historically, large Japanese insurers emphasize progressive dividends supplemented by buybacks subject to capital conditions, but this cannot be corroborated here.

Risk Assessment

Business Risks:

• Catastrophe exposure (typhoons, earthquakes, U.S./global nat-cat events) driving underwriting volatility
• Reserve adequacy risk (IBNR assumptions, inflation trends in loss costs, social inflation in overseas markets)
• Pricing and competitive dynamics in commercial and personal P&C lines
• Regulatory changes in Japan and overseas affecting capital and product pricing
• Operational and model risk in underwriting, reinsurance, and risk selection
• FX translation risk given significant overseas earnings contribution

Financial Risks:

• Market risk in the investment portfolio (interest rate shifts, credit spreads, equity market volatility)
• ALM mismatches between liabilities and invested assets impacting economic capital
• Reinsurance counterparty and retrocession availability/cost
• Capital market conditions affecting unrealized gains/losses and OCI
• Potential for adverse reserve development impacting earnings and capital

Key Concerns:

• Lack of disclosure on combined ratio and underwriting performance in this dataset
• Absence of CF data impedes earnings-to-cash validation
• Dividend and capital return details not provided, limiting visibility on shareholder return trajectory

Investment Implications

Key Takeaways:

• Half-year net income of ¥686.8bn is essentially flat YoY, indicating resilient profitability
• Operating income equals ordinary income (¥880.3bn), suggesting limited non-operating noise in 1H
• Point-in-time ROE around 13.7% on period-end equity; potential annualized ROE higher but uncertain
• Balance sheet leverage of ~6.15x is typical for an insurer of this scale
• Material data gaps (revenue, CFs, underwriting metrics, dividends) constrain depth of analysis

Metrics to Watch:

• Combined ratio (loss and expense ratios) and catastrophe loss impact in 2H
• Net investment income and realized/unrealized gains, especially amid rate and spread moves
• Reserve development trends (particularly U.S. casualty lines)
• Capital adequacy (SMR/ESR) and any updates on buybacks/dividend policy
• FX sensitivity and overseas earnings mix
• Share count changes (buybacks) and EPS trajectory relative to net income

Relative Positioning: Within Japanese and global P&C peers, Tokio Marine typically exhibits strong scale, diversified earnings, and disciplined capital use; current disclosed figures are consistent with a solid earnings base, but lack of underwriting and cash flow disclosures in this snapshot limits comparative precision.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis