All three major Japanese nonlife insurance companies posted record consolidated net profits for the second straight year in fiscal 2024, which ended in March, driven by gains from the sale of cross-held shares, according to their earnings reports.
Net profit went up some 1.5 times to ¥1,055.2 billion at Tokio Marine Holdings, about 1.9 times to ¥691.6 billion at MS&AD Insurance Group Holdings and 1.7% to ¥422.9 billion at Sompo Holdings.
The companies plan to sell all of their cross-shareholdings, which are said to have become a hotbed of improper business practices, after fraudulent advance adjustments of premium rates for corporations were found.
For fiscal 2024, gains from the sale of cross-shareholdings reached ¥822.1 billion at Tokio Marine, ¥530.6 billion at MS&AD and ¥298.6 billion at Sompo Holdings.
Net premium income increased at all the companies, reflecting hikes of car and fire insurance premium rates. The yen's weakening also helped their overseas operations.
Still, automobile insurance products are facing headwinds due to an increase in repair costs amid inflation.
"We will consider reviewing premium rates before January, the month they are revised annually," Tokio Marine Group Chief Financial Officer Kenji Okada said during a news conference Tuesday.
For fiscal 2025, net premium income is forecast to rise at the three firms, while net profit is predicted to shrink, due to decreases in their gains from the sale of cross-shareholdings.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.