Meiji Yasuda expected to sustain performance long-term

Last year, the company’s base profit was at $3.6b.

Over the long term, AM Best expects stable in-force policies, higher interest rates, and growing overseas contributions to sustain Meiji Yasuda Life Insurance’s operating performance.

Meiji Yasuda’s balance sheet strength, rated as the strongest by AM Best, is underpinned by its robust capital base and conservative financial leverage.

As of 31 March 2024 (FY 2023), the company’s absolute capital surged 57% to $37b (JPY5.8t), driven by significant unrealised gains on securities amidst favourable market conditions. 

Although the company’s substantial stock investments present moderate equity risk, its available capital is sufficient to absorb potential fluctuations. 

AM Best highlighted Meiji Yasuda’s sophisticated capital management framework, which incorporates economic solvency ratios and group surplus results.

For FY 2023, Meiji Yasuda reported $21b (JPY3.3t) in premium income and $3.6b (JPY561b) in base profit.

Reduced pandemic-related losses, improved investment gains, and a strong performance from its US subsidiary, StanCorp Financial Group, bolstered results. 

A favourable interest rate environment and yen depreciation further supported these gains.

In the first half of fiscal year 2024, base profit rose by 14%, reflecting ongoing improvement in investment performance.

($1.00 = JPY155.80)