Sompo reports strong income growth in Q2 results
Sompo reports strong income growth in Q2 results | Insurance Business America
Insurance News
Sompo reports strong income growth in Q2 results
However, firm notes that global economic recovery slowed in the quarter
Insurance News
By
Grant Funtila
Sompo Holdings Inc. reported a 20% increase in net attributable income for the quarter ending June 30, reaching ¥120.04 billion ($818.2 million).
In the first quarter of the fiscal year, property and casualty net premiums written grew to ¥1.22 trillion, which is up from ¥1.14 trillion compared to last year. Additionally, life insurance net premiums also grew from ¥75.47 billion to ¥75.99 billion.
Sompo said that global economic recovery slowed down during the quarter. High interest rates in the United States and Europe put pressure on consumer spending and capital investments. There were also lingering downside risks, such as concerns about growth in China, the company said.
“The Japanese economy continued to recover at a moderate pace, supported by improvements in corporate earnings, the labor market, and income levels, despite production or shipment suspensions by some automakers,” Sompo stated.
Net income for Sompo Japan was up 3.9% to ¥45.99 billion, helped by ¥25.39 billion of favorable development against ¥16.32 of unfavorable development a year earlier.
However, net premiums written by Sompo Japan decreased by 1.1% to ¥567.59 billion, and the segment’s combined ratio deteriorated by 5.5 points to 97.9.
The company recently introduced a strategy extending through the fiscal year 2026, where it will focus on international expansion, mergers, and acquisitions, efforts to restore trust in Japan’s property and casualty market, and addressing the challenges posed by an aging domestic population (BestWire, May 29, 2024).
Underwriting entities of Sompo Holdings Inc. currently hold Best’s Financial Strength Ratings of A+ (Superior). Sompo Holdings is a Japanese insurance holdings company that provides solutions in P&C insurance globally and life insurance and nursing care in Japan
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