SOMPO Holdings, Inc. (TSE: 8630), one of Japan's three largest non-life insurance groups, reported FY3/2026 consolidated results under IFRS that mark a transformational year. Insurance revenue rose 6.1% year-on-year to ¥5,372.9 billion, profit before tax surged 155.3% to ¥843.2 billion, and profit attributable to owners of the parent jumped 163.3% to ¥640.1 billion (vs. ¥243.1 billion prior year). Basic EPS climbed to ¥701.03 from ¥250.90, and ROE attributable to owners improved to 13.7% from 5.8%. Comprehensive income surged 247.9% to ¥1,336.0 billion, lifted by equity valuation gains and favorable discount-rate movements on insurance contracts.
All four segments deliver profit growth
The Domestic P&C Insurance business posted insurance revenue of ¥2,730.5 billion (+¥96.0 billion) and segment profit attributable to owners of ¥268.1 billion — an increase of ¥209.7 billion — reflecting improved underwriting performance at Sompo Japan, milder natural-catastrophe experience, and strong investment results. The Overseas Insurance business delivered insurance revenue of ¥2,441.1 billion (+¥213.4 billion) and segment profit of ¥294.4 billion (+¥116.7 billion), driven primarily by the consolidation of Aspen Insurance Holdings Limited, newly acquired during the year. Overseas segment assets expanded from ¥5,243.1 billion to ¥8,164.3 billion, reflecting the Aspen integration. Domestic Life Insurance generated revenue of ¥258.7 billion and segment profit of ¥68.6 billion (+¥38.7 billion). Nursing Care & Seniors recorded other operating revenue of ¥186.2 billion and segment profit of ¥7.9 billion (+¥2.6 billion).
Insurance service result up ¥284bn; financial result up ¥225bn
The dramatic improvement was underpinned by both underwriting and investment lines. Insurance service result rose ¥284.1 billion to ¥588.2 billion as insurance revenue grew, insurance service expenses remained contained at ¥4,459.7 billion, and net reinsurance expense narrowed to ¥324.9 billion. Financial result improved ¥225.1 billion to ¥344.9 billion, with investment income of ¥582.9 billion (vs. ¥327.1 billion) supported by ¥491.0 billion of other investment gains, partly offset by ¥238.0 billion of net insurance finance expense. Equity-method investment results turned positive at ¥3.5 billion (vs. ¥24.7 billion loss). Income tax expense more than doubled to ¥200.2 billion. Impairment losses were modest at ¥6.2 billion (vs. ¥3.3 billion).
Balance sheet: assets +¥2.7tn, Aspen drives the expansion
Total assets grew ¥2,713.6 billion to ¥18,603.7 billion, principally due to the Aspen acquisition (¥300.3 billion cash outflow for subsidiary acquisition), expanded investment securities of ¥12,451.8 billion, and reinsurance contract assets of ¥2,194.8 billion. Total equity increased ¥1,064.8 billion to ¥5,291.0 billion, with equity attributable to owners reaching ¥5,167.8 billion and the equity ratio rising to 27.8% from 26.5%. Operating cash flow strengthened to ¥706.4 billion (from ¥573.0 billion); investing cash outflows narrowed to ¥232.9 billion; financing outflows decreased to ¥412.6 billion, leaving period-end cash and equivalents at ¥1,134.9 billion.
Capital return: ¥229bn buyback, dividend raised to ¥150
SOMPO executed ¥229.3 billion of treasury share buybacks during the year and cancelled ¥219.6 billion of treasury stock. The annual dividend was raised to ¥150.00 per share (¥75.00 interim + ¥75.00 year-end), up from ¥132.00 the prior year, with total dividends paid of ¥135.6 billion at a consolidated payout ratio of 21.4%. The shareholder return policy targets 50% of adjusted consolidated profit (3-year average) plus 50% of after-tax gains on strategic-shareholding sales.
FY27 guidance and post-period actions
For FY3/2027, SOMPO guides profit attributable to owners of ¥490.0 billion (-23.4%, reflecting normalization from FY2025's exceptional gains), with EPS of ¥549.17. Domestic natural-catastrophe losses at Sompo Japan are assumed at ¥110.0 billion (net incurred, excluding household earthquake and pre-discount). The company plans a substantial dividend increase to ¥200.00 per share (¥100.00 interim + ¥100.00 year-end), implying a payout ratio of 36.4%.
Subsequent events include the April 22, 2026 issuance of USD 1.3 billion of senior unsecured notes (5.411% fixed coupon to April 2036, callable thereafter, maturing April 2037, listed in Singapore), with proceeds earmarked for subordinated loans to Sompo Japan. The board approved on May 20, 2026 a new share buyback program of up to 17.0 million shares (¥69.0 billion limit) running June 2, 2026 through November 18, 2026.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Insurance revenue (¥ billion) | 5,372.9 | 5,065.5 | +6.1% |
| Profit before tax (¥ billion) | 843.2 | 330.3 | +155.3% |
| Profit attributable to owners (¥ billion) | 640.1 | 243.1 | +163.3% |
| Basic EPS (¥) | 701.03 | 250.90 | +179.4% |
| ROE (owners) | 13.7% | 5.8% | +7.9pp |
| Total assets (¥ billion) | 18,603.7 | 15,890.1 | +17.1% |
| Equity ratio (owners) | 27.8% | 26.5% | +1.3pp |
| Annual dividend (¥) | 150.00 | 132.00 | +13.6% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.