Major non-life insurance groups in Japan have reported positive results, with net premiums up and a surge in profits for the fiscal year ending 31 Mar 2024.
According to data published by the Financial Services Agency (FSA), net premiums written by Japan’s major non-life insurers rose to 12.78 trillion yen (US$80.93bn) for FY2024, up from 12.07 trillion yen (US$76.43bn) in the previous year, marking an increase of 703.1bn yen (US$4.45bn).
The FSA attributed this rise to the “good performance of overseas business combined with the depreciation of the yen,” despite a pullback in the number of contracts following the Ocober 2022 rate revisions of fire insurance in domestic business.
Ordinary profits saw a substantial increase, reaching 1.75 trillion yen (US$11.08bn), up from 835.9bn yen (US$5.29bn) in the previous year, representing growth of 911.1bn yen (US$5.77bn).
Net income attributable to shareholders also surged to 1.48 trillion yen (US$9.37bn), up from 612.0bn yen (US$3.88bn), showing an increase of 869.1bn yen (US$5.51bn). The FSA noted that this was “primarily because of the increase in investment profit and the decrease in COVID-19 related losses, particularly in overseas business.”
Net extraordinary profits, however, decreased to 16.6bn yen (US$0.11bn) from 30.7bn yen (US$0.19bn) in the previous year.
The non-life insurer’s solvency margin ratio, a key indicator of an insurer’s financial health, increased by 16.6 points to 759.3% as of 31 Mar 2024. The FSA explained that this improvement was “attributable mainly to an increase in unrealised gains on available-for-sale securities due to the rise in stock prices.”
The FSA noted that the figures included consolidated data from Tokio Marine Holdings, MS&AD Holdings, and SOMPO Holdings, as well as non-consolidated data for Tokio Marine & Nichido Fire, Mitsui Sumitomo, Aioi Nissay Dowa, and Sompo Japan.
The FSA also highlighted that overseas consolidated subsidiaries of the major non-life insurance groups started to adopt IFRS 17 “Insurance Contracts” from the beginning of the fiscal year ended 31 Mar 2024. The figures for the year ended 31 Mar 2023 have been adjusted retrospectively in accordance with IFRS 17.
