Nippon Life eyes 20% surge in core operating profit by 2026

The insurance company laid out its three-year targets focusing on boosting revenues.

Nippon Life Insurance Company said it targets to grow its core operating income to ¥860b (US$5.48b) by 2026 by leveraging on sales and new revenue sources.

This target is 20% more than the 2023 target of ¥713b (US$4.55b). Furthermore, Nippon Life targets to double the current level by 2035.

Also part of its 2026 targets is increasing the number of customers to 15.6m from the 14.95m 2023 target. It also hopes to increase the number of corporate customers to 350,000 from 343,000 in three years.

On policyholder dividend payout ratio, Nippon Life aims to maintain it at around 60% in 2026 until 2035 from 73% in 2022.

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“The three years covered by the mid-term business plan is a period to strongly promote Group business management, where acceleration of expansion on sales performance and new revenue streams is pursued in order to boost the rate of mid to long term growth,” the company said.

Nippon Life cited five strategic directions it will take to achieve its targets. These are enhancing the value of its insurance business in the domestic market, offering peace of mind in the domestic market in an even more multidimensional way, expanding the global business, advancing the financial strategy, and building a stronger business foundation.

The company specifically said it will work on implementing proactive diversification of sales channels centred on sales representatives, creating added value through original and competitive insurance and services, expanding customer inflow by improving convenience, developing new business strategies, expanding through new investments, and building a resilient portfolio among others.

Nippon Life also listed its environmental targets by 2026, which includes decreasing carbon emissions by at least 51% from 2013, and net zero and 100% renewable energy ratio.

¥1=US$0.0064