Meiji Yasuda grows premiums 36.3% as surplus drops 18.7%

CreditSights flags $22.0b in premiums, but net result slides to $0.6b in the same period.

Meiji Yasuda has a strong operating momentum in the first nine months of fiscal year 2025 (FY 2025), reporting consolidated premiums, excluding reinsurance income, of $22.0b (JPY3,439.8b), up 36.3% year-on-year (YoY), according to CreditSights.

This marks a sharp acceleration from the 0.6% growth recorded in the same period a year earlier.

Growth was broad-based, with contributions from its domestic business and overseas operations, continuing the 30.5% expansion seen in the first half of FY 2025.

Profit trends were mixed. Consolidated net operating profit rose 12.9% YoY to $2.9b (JPY455.6b), supported by higher investment income and a 63.1% increase in earnings from StanCorp to $0.6b (JPY101.0b). However, consolidated net surplus fell 18.7% to $0.6b (JPY87.1b).

The decline was mainly due to $4.1b (JPY645.9b) in policy reserve provisions and $2.5b (JPY390.7b) in investment losses linked to bond portfolio recycling amidst rising domestic interest rates.

Capital levels eased but remain well above regulatory requirements. The consolidated solvency margin ratio stood at 1,033.3% at end-December 2025, down 30.6 basis points from 1,063.9% in March 2025, reflecting higher investment risk and bond redemptions.

This remains far above the 200% regulatory minimum. The group’s economic solvency ratio was 221% as of September 2025, above its 165% internal threshold and in line with its 220% target.

Management has raised its FY 2025 guidance for the second time. Insurance premiums are now projected at about $27.5b (JPY4.3t), up from the earlier estimate of around $25.6b (JPY4t) and representing 23.2% growth over FY 2024.

Group net operating profit is forecast at $4.5b (JPY700b), compared with the previous guidance of around $4.3b (JPY670b), implying a 4.9% increase from FY 2024.

CreditSights said the stronger earnings outlook and solid capital position support tighter spreads for Meiji Yasuda’s subordinated debt relative to peers.

($1.00 = JPY156.22)