Japan’s top four insurers grow profit 60% in fiscal 2024

However, these insurers expect earnings for fiscal 2025 to ease slightly.

Japan’s four largest listed insurers—Tokio Marine, MS&AD, Sompo, and Dai-ichi Life—reported a combined 60% year-on-year increase in economic profits for the fiscal year ended March 2025, according to a Morningstar Equity Analyst Note.

However, these insurers expect earnings for fiscal 2025 to ease slightly, following what analysts describe as historically high results.

Excluding one-off equity gains, underlying profit for the three non-life insurers grew between 11% and 15%, supported by overseas business performance. 

Dai-ichi Life saw a 38% increase in underlying profit, driven by improved investment returns and internal risk management initiatives. 

Return on equity (ROE) has now surpassed 10% for all four insurers, with Tokio Marine exceeding 20%. Just two to three years ago, ROEs were below the cost of equity for these firms.

Morningstar raised its fair value estimates for all four insurers on the back of stronger shareholder return projections.