Japan’s top insurers report strong FY 2024 on global premium rise

Despite conservative forecasts, Fitch’s analysts expect higher EPS for two insurers.

Japan’s top non-life insurers posted strong profits in fiscal 2024 (FY 2024) but expect earnings to fall in the current year due to higher catastrophe losses and weaker investment gains, Fitch Ratings said.

Tokio Marine forecasts an 11.9% drop in net profit to $6.23b (¥930.0b) for fiscal 2025, though it expects adjusted net profit to rise to $7.37b (¥1.100t), supported by international growth and auto insurance rate hikes.

MS&AD Insurance projects a $0.75b (¥112.6b) fall in net profit to $3.88b (¥579.0b), with adjusted profit down to $4.50b (¥671.0b) amid reduced gains from equity sales.

Sompo Holdings, shifting to IFRS reporting, expects net profit to rise to $2.24b (¥335.0b) from $1.63b (¥243.0b), with adjusted profit up to $2.43b (¥363.0b).

The company assumes $0.74b (¥110.0b) in domestic catastrophe losses.

Despite conservative forecasts, Fitch’s analysts expect higher EPS for Tokio Marine and MS&AD.

All three insurers reported growth in domestic and international net premiums written, led by gains in auto, fire, and specialty lines.