Tokio Marine reports steady H1 earnings, updates full-year outlook

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Industry observers in Insurance are monitoring emerging trends closely. By Kenneth Araullo
Tokio Marine has reported its financial results for the first half of fiscal year 2025, highlighting steady earnings and an updated outlook for the remainder of the year. Data shows that the company’s international and domestic property and casualty (P&C) businesses were key contributors to its performance. Net premiums written for the first half reached ¥2,685.8 billion ($17.32 billion), compared to ¥2,697.9 billion in the same period last year.

The international P&C segment posted net written premiums of ¥1,267.1 billion ($8.17 billion), down from ¥1,324.3 billion, but representing 5% year-over-year growth when excluding currency effects. The Japanese P&C business recorded net written premiums of ¥1,419.1 billion ($9.15 billion), up from ¥1,373.8 billion, reflecting revisions in rates and products for automobile and fire insurance. Read more: Tokio Marine posts Q1 profit amid high investment and underwriting returns
The company’s positive momentum in the first half of the year was preceded by a strong first quarter, during which Tokio Marine posted an ordinary profit of ¥565.2 billion.

Net income attributable to shareholders for Q1 reached ¥466.8 billion, up ¥269.5 billion from the prior year. Adjusted net income for the first half was ¥755 billion ($4.87 billion), which is 69% of the company’s full-year outlook. Share buybacks for the year have been increased by ¥20 billion ($129 million) to ¥240 billion ($1.5 billion).

The sale of business-related equities in the first half totaled ¥580 billion ($3.74 billion). By segment, the Japan P&C business reported a first-half business unit profit of ¥93.7 billion ($604 million), up from ¥65.9 billion ($425 million) a year earlier. The Japan life segment posted a profit of ¥32.6 billion ($210 million), compared to ¥23.4 billion ($151 million) in the prior period.

International operations reported a business unit profit of ¥235.4 billion ($1.51 billion), down from ¥251.4 billion ($1.62 billion). Tokio Marine Group has raised its full-year FY2025 adjusted net income forecast by ¥10 billion ($64 million). Second-quarter adjusted net income, excluding business-related equities, reached 52% of the original projection.

The company attributed its results to a decrease in natural catastrophe losses, the impact of rate increases in Japan P&C, strong international underwriting, and reduced capital losses in North America. Including business-related equities, the progress rate for the first half was 69%, driven by early execution of equity sales. Data shows that the full-year projection, excluding business-related equities, has been revised downward by ¥28 billion to ¥672 billion, due to foreign exchange impacts, lower profits in Asian life insurance from falling interest rates, and higher advertising expenses at Tokio Marine Direct Insurance.

Sources indicate that these factors offset strong international underwriting and reduced capital losses in North America. On a normalized basis, the full-year projection excluding business-related equities was revised downward by ¥20 billion to ¥680 billion. Including business-related equities, the projection was also revised downward by ¥20 billion to ¥1.08 trillion, reflecting profit declines in Asian life and increased advertising at TMDI.

The company also revealed that its FY2025 dividend per share will be increased by ¥1 to ¥211. The latest economic solvency ratio was 155%. Evidence suggests that the share buyback plan for FY2025 was raised by ¥20 billion to ¥240 billion, taking into account the level required to boost earnings per share growth by 2%, the M&A pipeline, and other factors.

Of this, ¥110 billion has already been executed, with approved execution for ¥130 billion.

These developments reflect broader trends shaping the Insurance industry as organizations adapt to evolving market conditions.

— Based on reporting from insurancebusinessmag.com

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