Japan’s three major non-life insurance groups—Tokio Marine Holdings, MS&AD Insurance Group Holdings, and SOMPO Holdings—are facing structural changes driven by the increasing frequency of natural disasters, the maturity of the domestic non-life insurance market, the reduction of cross-shareholdings, and the expansion of overseas operations. This article quantitatively compares the three companies from the perspectives of Ordinary Income, Net Underwriting Profit, Net Investment Income, balance sheets, and shareholder returns, based on TDnet financial-results XBRL data for FY2022–FY2026.
This article is based on financial-results releases (XBRL) published by TDnet. Please note that SOMPO Holdings transitioned to IFRS from FY2025, and certain insurance-specific items, including Net Premiums Written and Ordinary Income, are no longer disclosed.
Overall Trends in the Non-Life Insurance Industry
Across the three companies, where a combined figure can be calculated, Net Premiums Written increased from ¥10,712.5 billion in FY2022 to ¥12,075.0 billion in FY2023. Combined net income doubled from ¥907.9 billion in FY2022 to ¥1,989.9 billion in FY2025, before declining to ¥1,681.8 billion in FY2026. Total assets grew from ¥66,067.4 billion in FY2022 to ¥81,198.4 billion in FY2026.
Metric (combined)
FY2022
FY2023
FY2024
FY2025
FY2026
Net Premiums Written
¥10,712.5 billion
¥12,075.0 billion
Not readily calculable
Not readily calculable※1
Not readily calculable※1
Ordinary Income
¥1,273.3 billion
¥857.5 billion
Not readily calculable※2
Not readily calculable※2
Not readily calculable※2
Net Income Attributable to Owners of the Parent
¥907.9 billion
¥629.0 billion
¥1,065.0 billion※3
¥1,989.9 billion
※1 SOMPO has not disclosed these items since FY2025 following its transition to IFRS. ※2 A combined figure for Ordinary Income cannot be calculated because SOMPO did not disclose Ordinary Income for FY2024 and FY2025. ※3 SOMPO’s FY2024 data was not included in the data provided; therefore, this represents the combined figure for Tokio Marine and MS&AD only (¥1,065.0 billion).
Ordinary Income Trends: Different Growth Rates Across the Three Companies
A comparison of the three-year CAGR in Ordinary Income from FY2022 to FY2025 highlights the strong growth momentum of Tokio Marine Holdings and MS&AD. SOMPO’s CAGR cannot be calculated because Ordinary Income was not disclosed for FY2024 and FY2025 following its transition to IFRS.
The latest year-on-year changes shown in the provided data under ChangeInProfit were +32.6% for Tokio Marine Holdings, +68.8% for MS&AD, and +162.2% for SOMPO, with SOMPO recording the highest growth rate. However, because SOMPO’s earnings had declined sharply in FY2023, from ¥315.5 billion to ¥122.5 billion, the increase appears to reflect a significant rebound effect.
Earnings Structure: Two Pillars of Underwriting and Investment Operations
In terms of Net Underwriting Profit and Net Investment Income, Tokio Marine Holdings maintains the largest scale in both areas. Since SOMPO’s latest finalized data is for FY2023, a direct comparison with the other two companies’ FY2025 figures should be treated with caution.
Metric
Tokio Marine Holdings (FY2025)
MS&AD (FY2025)
SOMPO (FY2023)
Underwriting Income
¥6,275.5 billion
¥5,400.5 billion
¥4,090.7 billion
Investment Income
¥1,988.6 billion
¥1,199.3 billion
¥325.7 billion
Net Underwriting Profit
¥1,282.1 billion
¥821.1 billion
¥492.7 billion
At Tokio Marine Holdings, Net Investment Income exceeds Net Underwriting Profit, indicating that the ¥547.0 billion Gain on Sales of Securities significantly boosted Investment Income. Similarly, at MS&AD, the increase in Gain on Sales of Securities, which reached ¥509.7 billion, was a major driver of Net Investment Income.
Comparison of Underwriting Expenses
A comparison of the components of Underwriting Expenses highlights differences in each company’s insurance portfolio.
Metric
Tokio Marine Holdings (FY2025)
MS&AD (FY2025)
SOMPO (FY2023)
Net Claims Paid
¥2,765.8 billion
¥2,489.0 billion
¥1,947.6 billion
Loss Adjustment Expenses
¥193.8 billion
¥242.8 billion
¥135.8 billion
Commissions & Collection Expenses
¥1,018.0 billion
¥890.7 billion
¥703.1 billion
MS&AD’s provision for Policy Reserves, etc., was ¥734.7 billion, substantially higher than at the other two companies. The increase in life insurance premiums, which reached ¥608.6 billion, may also have contributed. Tokio Marine Holdings reported Commissions & Collection Expenses of ¥1,018.0 billion, a figure that appears to reflect the scale of its agency network.
Comparison of Investment Performance
When Interest & Dividends Income, Gain on Sales of Securities, and Net Investment Income are compared side by side, the scale of Tokio Marine Holdings’ investment operations stands out.
Metric
Tokio Marine Holdings (FY2025)
MS&AD (FY2025)
SOMPO (FY2023)
Interest & Dividends Income
¥1,000.3 billion
¥495.1 billion
¥241.4 billion
Gain on Sales of Securities
¥547.0 billion
¥509.7 billion
¥16.8 billion
Net Investment Income
¥1,444.0 billion
¥942.2 billion
¥211.9 billion
At Tokio Marine Holdings and MS&AD, Gain on Sales of Securities accounted for approximately 30%–50% of Net Investment Income, suggesting that progress in selling cross-shareholdings made a significant contribution to investment earnings. At SOMPO, Gain on Sales of Securities was relatively small at ¥16.8 billion in FY2023. However, because P&L items have not been disclosed since FY2025 following the transition to IFRS, the latest figures cannot be calculated from the data provided.
Balance Sheet Analysis
The following table compares Securities, Policy Reserves, Outstanding Claims Reserves, the Reserve for Price Fluctuations, and Unrealized Gains/Losses on Securities.
Metric
Tokio Marine Holdings (FY2025)
MS&AD (FY2025)
SOMPO (FY2023)
Securities
¥19,262.9 billion
¥17,760.0 billion
¥9,808.1 billion
Policy Reserves, etc.
¥17,767.1 billion
¥16,252.1 billion
¥7,736.5 billion
Outstanding Claims Reserves
¥5,411.5 billion
¥3,301.1 billion
¥2,382.3 billion
SOMPO Holdings transitioned to International Financial Reporting Standards (IFRS) from FY2025. As a result, insurance-specific items such as Securities, Policy Reserves, and the Reserve for Price Fluctuations have not been disclosed in the data for FY2025 onward. This difference in accounting standards must be taken into account when making direct comparisons with the other two companies, which continue to report under Japanese GAAP.
Tokio Marine Holdings had Outstanding Claims Reserves of ¥5,411.5 billion, the largest among the three companies. This may reflect the increased frequency of natural disasters and the expansion of its overseas reinsurance business.
Cash Flow and Shareholder Returns
The following table compares operating cash flow, investing cash flow, financing cash flow, Share Repurchases, and Total Shareholder Returns (cash) for the latest period, FY2026.
Metric
Tokio Marine Holdings
MS&AD
SOMPO
Operating Cash Flow
¥1,390.5 billion
¥954.0 billion
¥706.4 billion
Investing Cash Flow
-¥402.7 billion
-¥719.5 billion
-¥232.9 billion
Financing Cash Flow
-¥642.0 billion
-¥138.7 billion
-¥412.6 billion
Share Repurchases / Buybacks
Tokio Marine Holdings’ operating cash flow increased steadily over the five-year period, from ¥1,102.2 billion in FY2022 to ¥1,390.5 billion in FY2026. MS&AD also recorded a substantial increase, from ¥236.7 billion to ¥954.0 billion, suggesting that improved profitability in both underwriting and investment operations was reflected in cash flow. Total Shareholder Returns (cash), including Share Repurchases / Buybacks, have generally increased in recent years across the companies, indicating a stronger commitment to shareholder returns.
Per-Share Metrics and Dividend Policies
All three companies have recently carried out stock splits, each at a ratio of approximately 1-for-3. Accordingly, EPS and dividends for the fiscal year before each split are shown on a split-adjusted basis.
Tokio Marine Holdings, MS&AD, and SOMPO carried out approximately 1-for-3 stock splits in FY2023, FY2024, and FY2025, respectively. EPS and dividends per share for the fiscal year before each split were originally reported on a pre-split basis and must be divided by three for comparison on a split-adjusted basis.
Metric
Tokio Marine Holdings
MS&AD
SOMPO
FY2022 EPS (split-adjusted)
Approx. ¥204.5
Approx. ¥158.2
Approx. ¥214.7
FY2022 Dividend per Share (split-adjusted)
Approx. ¥85.0
Approx. ¥60.0
Approx. ¥70.0
FY2026 EPS
¥279.35
¥342.98
¥701.03
FY2026 Dividend per Share
Dividend Payout Ratio = Dividend per Share / EPS
Based on FY2026 figures, the Dividend Payout Ratio was approximately 78.0% for Tokio Marine Holdings (218 / 279.35), 46.6% for MS&AD (160 / 342.98), and 21.4% for SOMPO (150 / 701.03). SOMPO’s payout ratio appears to be the lowest of the three because its EPS rose sharply to ¥701.03. However, there may be a time lag before such a sharp increase in earnings is reflected in dividend policy.
Earnings Forecasts and Progress Rates
The following table compares each company’s published full-year net income forecast with the latest actual results shown in the provided data, represented by the FY2026 column.
Progress Rate = Latest Actual Net Income / Full-Year Net Income Forecast
Metric
Tokio Marine Holdings
MS&AD
SOMPO
Full-Year Net Income Forecast
¥830.0 billion
¥425.0 billion
¥490.0 billion
Latest Actual Net Income
¥531.2 billion
¥510.6 billion
¥640.0 billion
Progress Rate
Approx. 64.0%
Approx. 120.1%
Approx. 130.6%
MS&AD and SOMPO have already exceeded their full-year forecasts based on the latest actual results, while Tokio Marine Holdings’ progress rate remains approximately 64%. This may reflect differences in the timing of financial disclosures or the periods covered by the accounting data. Possible explanations include a more back-loaded earnings structure at Tokio Marine Holdings or comparatively conservative forecasts at MS&AD and SOMPO. The data provided do not allow the specific quarterly factors behind these progress rates to be identified.
Key Areas to Watch
Overseas M&A, the transition to IFRS, and natural disaster risk are all qualitative issues that extend beyond the scope of the data provided.
Tokio Marine Holdings has the largest level of intangible assets and Goodwill among the three companies, apparently reflecting its active acquisitions in overseas insurance markets, including North America. The contribution of its overseas operations to earnings is likely to continue affecting its financial structure.
Following SOMPO’s transition to IFRS from FY2025, the valuation of insurance liabilities and the timing of profit recognition may differ from those under Japanese GAAP, making simple comparisons with the other two companies even more difficult. The adoption of IFRS 17, Insurance Contracts, may also have changed the concept of Net Underwriting Profit itself.
With respect to natural disaster risk, the upward trend in Tokio Marine Holdings’ Outstanding Claims Reserves over the five-year period suggests that the increasing incidence of major typhoons and heavy-rain disasters may be affecting the Underwriting Expenses structure of non-life insurers. However, risk indicators such as the combined ratio were not included in the data provided, so this article cannot quantitatively assess the impact on profitability.
Summary
The key characteristics identified from the financial data of the three companies are summarized below.
まとめ
- **Tokio Marine Holdings:** The largest of the three in both Ordinary Income and net income. Its Net Investment Income, including Gain on Sales of Securities, exceeds Net Underwriting Profit. It also has the largest Outstanding Claims Reserves and Goodwill, suggesting a significant impact from the expansion of its overseas operations.
- **MS&AD:** Its Ordinary Income CAGR from FY2022 to FY2025 was approximately 33.5%, and its latest actual results are running ahead of its full-year forecast. Its large provision for Policy Reserves, etc., may have been affected by growth in life insurance premiums.
- **SOMPO:** Although it recorded a sharp earnings decline in FY2023, its latest year-on-year growth rate was +162.2%, the highest among the three. Since its transition to IFRS from FY2025, many insurance-specific items have no longer been disclosed, making direct comparisons with the other companies more difficult.
- All three companies have carried out stock splits, making split adjustments essential when comparing EPS and dividends per share.
- Progress rates based on the latest actual results versus full-year forecasts varied considerably: approximately 64% for Tokio Marine Holdings, 120% for MS&AD, and 131% for SOMPO.
This article is for informational purposes only, based on publicly available financial data (TDnet XBRL filings).
It is intended as a financial analysis resource and does not constitute investment advice.
