Sompo forecasts $1.47b net income for FY’25 

Its FY’24 net income significantly grew compared to the previous year.

Sompo Holdings saw its yearend (FY’24) net income skyrocket to $2.67b (¥418.066b), a turnaround from the $0.18b (¥28.160b) it recorded in FY’23.

During FY2023, global growth slowed compared to FY2022 due to monetary tightening to control inflation and rising geopolitical risks. However, the global economy remained resilient, driven by the strong US economy, it said in a company filing.

Japan's economy continued to recover moderately, supported by improved corporate earnings, labor market, income levels, and pent-up demand post-COVID-19 restrictions, despite international economic recovery slowdowns. Inflation and financial market fluctuations require close monitoring.

Under these conditions, Sompo Holdings Group reported an ordinary income increased by $2.61b (¥407.7b) to $31.57b (¥4,933.6b), comprising $26.24b (¥4,099.4b) in underwriting income, $3.79b (¥592.5b) in investment income, and $1.55b (¥241.6b) in other ordinary income.

Ordinary expenses decreased by $0.20b (¥30.7b) to $28.45b (¥4,445.6b), with underwriting expenses at $22.37b (¥3,495.1b), investment expenses at $0.69b (¥108.0b), operating, general, and administrative expenses at $4.21b (¥658.7b), and other ordinary expenses at $1.18b (¥183.7b).

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Net income attributable to shareholders of the parent was $2.66b (¥416.0b), an increase of $2.49b (¥389.6b) from the previous fiscal year.

Total assets amounted to $94.93b (¥14,832.7b), an increase of $9.48b (¥1,481.5b) from the previous year.

Company outlook

For the fiscal year ending 31 March 2025, the Company forecasts consolidated ordinary profit of $2.05b (¥320.0b) and net income attributable to shareholders of the parent of $1.47b (¥230.0b). Assumptions include:

Net premiums written based on the Company’s projections. Net incurred losses of $0.70b (¥110.0b) for Sompo Japan Insurance Inc. due to domestic natural disasters.

No significant changes in market interest rates, exchange rates, and stock prices from March 31, 2024 levels. These forecasts are based on current information and may differ from actual results due to various factors.

($1.00 = ¥156.79)