Tokio Marine profit slides in 2025 on weaker investments, underwriting

Underwriting profit fell to $300.2m from $609.9m over the fiscal year.

Tokio Marine Holdings’ net income attributable to owners of the parent fell to $4.60b (JPY731.1b) for fiscal year (FY) 2025 ended 31 March 2026, compared with $5.98b (JPY949.7b) in FY 2024, according to its financial report.

The decline was driven by weaker investment income and lower underwriting profit, even as insurance fundamentals remained broadly stable.

Whilst ordinary profit declined to $5.86b (JPY930.8b) from $7.30b (JPY1.16t), insurance premiums and revenue from the solution business rose to $45.76b (JPY7.27t) from $41.98b (JPY6.67t).

Underwriting profit also dropped to $300.2m (JPY47.7b) from $609.9m (JPY96.9b).

Net investment income and other items fell to $5.54b (JPY879.9b) from $6.67b (JPY1.06t), reflecting lower interest and dividends, reduced gains on sales of securities, and higher derivative losses.

Net premiums written increased to $16.36b (JPY2.60t) from $15.86b (JPY2.52t), whilst claims paid rose to $9.16b (JPY1.45t) from $9.12b (JPY1.44t).

Loss adjustment expenses increased to $911.4m (JPY144.8b) from $879.9m (JPY139.8b), whilst operating and general administrative expenses on underwriting rose to $2.08b (JPY330.6b) from $1.99b (JPY316.0b).

Net incurred losses related to natural catastrophes fell to $349.3m (JPY55.5b) from $729.5m (JPY115.9b), whilst the balance of catastrophe loss reserves rose to $6.73b (JPY1.07t) from $6.48b (JPY1.03t).

Investment income from interest and dividends declined to $2.12b (JPY337.2b) from $2.69b (JPY427.9b), with gains on sales of securities slipping to $4.21b (JPY668.6b) from $4.87b (JPY774.2b).

Investment income at the life insurance unit rose to $1.63b (JPY258.9b) from $903.2m (JPY143.5b), whilst investment expenses increased to $2.97b (JPY471.8b) from $1.59b (JPY252.3b).

Net gains on securities turned to a loss of $2.23b (JPY354.9b) from a loss of $1.23b (JPY195.8b).

Tokio Marine Holdings forecasts net income attributable to owners of the parent of $5.22b (JPY830b) for fiscal year 2026, compared with $3.34b (JPY531.3b) in fiscal year 2025.

Insurance revenue and revenue from the solution business are expected to rise to $49.41b (JPY7.85t) from $45.76b (JPY7.27t).

(US$1 = JPY158.88)