Sompo Holdings net income falls

For the fiscal year ending March 31, 2023, Sompo Holdings saw an almost 60% decrease in the company’s net income provided to the parent’s shareholders.

Sompo’s underwriting revenue for the year was ¥4.1 trillion, while investment revenue totaled ¥325.7 billion.

Regarding the lower net income, Sompo said: “Ordinary expenses increased by ¥632.6 billion to ¥4.5 trillion compared to the previous fiscal year, parts of which were underwriting expenses of ¥3.6 trillion, investment expenses of ¥113.7 billion, operating, general, and administrative expenses of ¥598.4 billion and other ordinary expenses of ¥174.3 billion.

“As a result of the aforementioned, Sompo Holdings, Inc. reported ordinary profit, calculated as ordinary income minus ordinary expenses, of ¥122.5 billion, a decrease of ¥192.9 billion from the previous fiscal year. The company posted net income attributable to parent shareholders, after extraordinary items, net of income tax and deferred income tax etc., of ¥91.1 billion, a decrease of ¥ 133.6 billion from the previous fiscal year. “

Meanwhile, the net income attributable to the parent’s shareholders from the group’s domestic property & casualty insurance business decreased; overseas insurance business, up; domestic life insurance, low; and nursing care & seniors business, down.

Speaking about its forecast, Sompo said: “For the fiscal year ending March 31, 2024, the company forecasts consolidated ordinary profit of ¥322 billion and net income attributable to parent shareholders of ¥230 billion yen, based on the following assumptions. :

“The assumptions for net premiums written are based on the company’s own projections based on extrapolation from past trends and other factors. The company forecasts ¥98 billion yen for net incurred claims loss (excluding home earthquake insurance) of Sompo Japan Insurance Inc.

“The company does not anticipate significant changes in market interest rates, exchange rates, and stock prices from their levels as of March 31, 2023.”

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