Nippon Life nears FY 2025 revenue goal of $52b

It registered $48b in insurance and service revenue, up 18.7% during 9M 2025.

Nippon Life Insurance Company is on track to meet its fiscal year 2025 (FY 2025) guidance of around $51.6b (JPY8,070b) in revenue and $7.2b (JPY1,130b) in core profit, CreditSights said.

Analysts continue to view the insurer as a strong credit, supported by its leading domestic market position, stable profitability, solid capital base and controlled capital management following the Resolution Life deal.

The insurer is also expected to see valuation upside as its spread to AIA Group remains wider than fair value levels, according to analysts maintaining an Outperform call on the Japanese insurer.

The spread differential between the two insurers is currently close to 70 basis points, compared with what analysts see as a fair value range of around 25 to 30 basis points. Based on this gap, they expect a similar 25 to 30 basis points of potential upside for Nippon Life.

For the first nine months of FY 2025, Nippon Life reported consolidated insurance and service revenue of $47.5b (JPY7,424.7b), up 18.7% year-on-year.

Growth was driven by stronger single-premium sales at the parent level, robust reinsurance income and foreign-currency policy growth at Nippon Wealth Life, as well as the consolidation of Nichii Holdings.

Premium income rose 18.0% to $44.4b (JPY6,940.0b).

($1.00 = JPY155.08)