Sompo Holdings net income falls

Sompo Holdings net income falls | Insurance Business America

Insurance News

Sompo Holdings net income falls

Different expenses outlined

Insurance News

By
Terry Gangcuangco

For the fiscal year ended March 31, 2023, Sompo Holdings saw a nearly 60% decline in the company’s net income attributable to shareholders of the parent.

Metric

Year ended March 31, 2023

Year ended March 31, 2022

Ordinary income

¥4.6 trillion

¥4.2 trillion

Ordinary profit

¥122.5 billion

¥315.5 billion

Net income attributable to shareholders of the parent

¥91.2 billion

¥224.8 billion

Sompo’s underwriting income for the year was ¥4.1 trillion, while investment income amounted to ¥325.7 billion.

As for the lower net income, Sompo had this to say: “Ordinary expenses increased by ¥632.6 billion to ¥4.5 trillion compared to the previous fiscal year, the components 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 foregoing, 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 shareholders of the parent, after extraordinary items, net of income taxes and deferred income taxes and others, of ¥91.1 billion, a decrease of ¥133.6 billion from the previous fiscal year.”

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

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

“Assumptions for net premiums written are based on the company’s own projections based on extrapolation from past trends and other factors. The company is forecasting ¥98 billion yen for net incurred losses (excluding household earthquake insurance) of Sompo Japan Insurance Inc. due to domestic natural disasters that occur in the fiscal year ending March 31, 2024, taking into account past trends and other factors.

“The company assumes no major change in market interest rates, exchange rates, and stock prices from their levels at March 31, 2023.”

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