Japan’s three major property and casualty insurance groups have raised their full-year outlooks after two reported record net profits for the April-September half, driven by solid auto insurance business.
Tokio Marine Holdings Inc. on Wednesday raised its net profit forecast for the current fiscal year ending March to ¥270 billion, up 46.6 percent from the year before and compared with an earlier forecast of ¥230 billion, as the weaker yen will boost revenue from its overseas insurance business.
MS&AD Insurance Group Holdings Inc. lifted its net profit projection Wednesday to ¥120 billion, up 28.4 percent from the previous year and compared with its earlier forecast of ¥100 billion, citing higher investment gains and the sale of securities holdings.
Tokio Marine said its net profit in the first sixth months ended Sept. 30 soared 56.3 percent from a year before to a record ¥142.94 billion and MS&AD Insurance Group said its net profit rose 0.1 percent to ¥109.67 billion, also an all-time high for the first half.
Increased premiums from auto insurance services resulting from revised premiums and a fall in traffic accidents and natural disasters lifted their bottom lines.
Sompo Japan Nipponkoa Holdings Inc., which was renamed from NKSJ Holdings Inc. on Sept. 1 following the merger of its two group insurance firms, said its net profit in the first half dropped 47.1 percent to ¥15.43 billion, dented by costs related to the integration.
But the company boosted its full-year net profit projection to ¥45 billion, up 1.9 percent from the year before and compared with its earlier forecast of ¥33 billion, as it expects higher gains in stock and foreign exchange markets.
Net premium revenues, equivalent to sales at companies in other sectors, rose 7.2 percent to ¥1.52 trillion at Tokio Marine, 4.4 percent to ¥1.49 trillion at MS&AD Insurance and 11.2 percent to ¥1.24 trillion at Sompo Japan Nipponkoa jumped in the same period.
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