Sumitomo Life premiums to hit $25b in FY 2026

CreditSights said a wider investment spread is expected to support earnings.

Sumitomo Life expects insurance premium income to rise 3.7% to $24.6b (JPY3.9t) in fiscal year 2026 (FY 2026), whilst group core profit is projected to increase 2.9% to $2.6b (JPY420b).

CreditSights said gains from a wider investment spread are expected to support earnings, although inflation-driven cost pressures and ongoing growth investments are likely to limit profit growth.

In FY 2025, consolidated insurance premium income rose 10.5% year-on-year to $23.7b (JPY3.76t). Domestic premiums increased 8.2% to $14.5b (JPY2.30t), whilst overseas premiums grew 13.2% to $7.9b (JPY1.26t), supported by subsidiaries Symetra and Singlife.

Group core profit increased 2.8% to $2.6b (JPY408.1b). CreditSights noted that profit growth would have been 15% on an underlying basis if not for higher reserves linked to rapid growth in single-premium whole life products.

The insurer also benefited from an improved investment spread, which widened to 90 basis points from 59 basis points a year earlier as the basic yield rose to 2.75%.

CreditSights said Sumitomo Life's investment portfolio repositioning was evident in FY25, with losses from domestic bond sales increasing to $2.3b (JPY372b) from $388.7m (JPY61.7b) a year earlier.

These losses were partly offset by $1.8b (JPY290.2b) in gains from equity sales.

($1.00 = JPY159.91)