Japan’s major insurers see net income rise despite $13b capital losses

Interest and dividend returns helped core business profit reach $29b.

Japan’s major life and non-life insurers reported higher income for the financial year ended 31 March 2026.

Major life insurers recorded premium and other income of $237.5b (JPY38,935.6b), up $19.0b (JPY3,120.4b) from the previous year, according to figures released by the Financial Services Agency on 19 June.  

The increase was mainly driven by stronger sales of single-premium, yen-denominated insurance as domestic interest rates rose.

Core business profit increased by $3.0b (JPY496.2b) to $28.5b (JPY4,674.2b), supported by higher interest and dividend income.

However, net capital losses widened to $12.6b (JPY2,068.6b) from $2.8b (JPY456.9b) a year earlier, mainly because of higher losses from securities sales. 

Despite this, net income rose by $1.5b (JPY249.9b), or about 11%, to $15.5b (JPY2,537.9b). Japan’s three major non-life insurance groups: Tokio Marine Holdings’ insurance underwriting revenue rose by $1.5b (JPY252.4b) to $39.8b (JPY6,527.9b), whilst MS&AD Insurance Group Holdings recorded an increase of $2.2b (JPY361.9b) to $35.2b (JPY5,762.5b).

SOMPO Holdings’ insurance revenue increased by $1.9b (JPY307.4b) to $32.8b (JPY5,372.9b). The agency attributed the overall rise to insurance rate and product revisions in Japan, as well as expanded overseas underwriting.

Combined net income attributable to owners of the three parent companies increased by $2.5b (JPY417.7b) to $14.7b (JPY2,407.7b), mainly because of fewer natural disasters.

Tokio Marine’s net income fell by $0.5b (JPY74.8b) to $6.0b (JPY980.4b). 

MS&AD’s net income rose by $0.6b (JPY95.6b) to $4.8b (JPY787.3b), whilst SOMPO’s increased by $2.4b (JPY396.9b) to $3.9b (JPY640.0b). SOMPO reports its insurance figures under International Financial Reporting Standard 17. 

($1.00 = JPY163.56)