MS&AD posts $1.51b profit in Q1 2025 on underwriting gains

Japan’s nonlife business posted stronger underwriting profit as earned premiums rose.

MS&AD Insurance Group Holdings Inc. reported fiscal first-quarter net income of $1.51b (¥222.7b), up from $1.39b a year earlier, driven by higher underwriting profit and fewer natural catastrophe and large losses.

Nonlife insurance direct premiums written increased to $9.70b from $8.57b, whilst life insurance gross premium income rose slightly to $2.56b from $2.55b.

The group’s overseas operations saw net premiums written grow on market share gains at its Lloyd’s and reinsurance units, as well as expansion in Asia, Europe and the Americas. 

However, segment net profit fell to $308.23b from $360.27b, mainly due to stock price declines and foreign exchange losses on yen deposits. MS&AD also reported a $118.37b loss from the California wildfires.

In Japan, the nonlife business posted stronger underwriting profit as earned premiums rose, particularly in auto and fire insurance, whilst incurred losses from natural catastrophes declined. 

Excluding natural catastrophes, losses fell on foreign exchange impacts, although auto insurance losses rose.

Investment profit declined on lower gains from strategic equity sales and reduced dividend and interest income.

Separately, MS&AD agreed earlier this year to sell its 15.1% stake in Australian financial services firm Challenger Ltd. to a unit of Dai-ichi Life Holdings Inc. The sale was accepted as part of MS&AD’s efforts to improve capital efficiency.