Japan insurers benefit from lower COVID-19 costs

Both the life and non-life industries saw a surge in their end-March net income.

The income of Japan’s life insurers surged 23.1% as of end March 2024, thanks to “an increase in core business profits mainly due to a decrease in hospitalisation benefit payments for COVID-19, while the hedging cost of foreign exchange increased.”

This was equivalent to $125.37m (¥19.9b), a large difference from the $23.94m (¥3.8b) the previous year. 

Similarly, its premium and other income climbed 12.9% to $2.31b (¥365.9b), data from Japan’s Financial Services Agency (FSA) showed.

“Premium and other income increased from the previous year, primarily due to an increase in single premium insurance denominated in yen currency because of rising domestic interest rates,” the FSA said in a press release.

Likewise, net income attributable to shareholders of non-life insurers in Japan more than doubled to $93.24m (¥14.8b). 

“Net income attributable to shareholders increased from the previous year, primarily because of the increase in investment profit and the decrease in COVID-19 related losses, particularly in overseas business,” the FSA stated.

Net premiums written slightly climbed 5.8% to $805.14m (¥127.8b). “Net premiums written increased from the previous year, primarily because of the good performance of overseas business combined with the depreciation of the yen, despite the pullback in the number of contracts after the increase seen prior to the Oct. 2022 rate revisions of fire insurance in domestic business.” added FSA.

($1.00 = ¥0.0063)