Tokio Marine Holdings, Inc. (TSE: 8766), Japan's largest non-life insurance group by market value, released its FY3/2026 consolidated short report (Kessan Tanshin) under Japanese GAAP on May 20, 2026. For the year, ordinary income (keijo shueki) rose 5.1% year-on-year to ¥8,872.2 billion, supported by underwriting income of ¥6,527.9 billion (net premiums written of ¥5,566.3 billion, +4.9%) and investment income of ¥1,984.5 billion. Ordinary profit, however, declined 7.6% to ¥1,348.6 billion, and profit attributable to owners of the parent fell 7.1% to ¥980.4 billion (vs. ¥1,055.2 billion). Basic EPS came in at ¥515.55, down from ¥542.16. ROE was 18.7% (vs. 20.6%), and the ordinary profit margin on ordinary income was 15.2%. Comprehensive income recovered to ¥962.1 billion from ¥449.4 billion as unrealized securities gains and FX translation normalized.
Segment view: international saves the year
By segment, the domestic non-life business posted ordinary income of ¥3,790.2 billion (-¥96.2 billion) and ordinary profit of ¥744.4 billion (-¥148.8 billion), reflecting higher claims and elevated cost ratios. The domestic life business reported ordinary income of ¥796.1 billion (+¥156.7 billion) but ordinary profit declined sharply to ¥23.6 billion (-¥46.5 billion). The international insurance business — the group's growth engine — generated ordinary income of ¥4,599.8 billion (+¥290.0 billion) and ordinary profit of ¥559.0 billion (+¥70.5 billion), supported by both North American and other overseas operations. Solutions & Other Business (renamed this period from "Financial & Other Business") contributed ¥21.4 billion in segment profit. Net premiums written growth was led by fire (+4.2%), marine (+7.3%) and auto (+7.5%) lines.
Why net profit fell: weaker realized gains, higher credit costs
The YoY profit decline was driven by weaker gains on the sale of securities (¥713.2 billion vs. ¥842.2 billion), higher losses on the sale of securities (¥471.8 billion vs. ¥295.1 billion), increased securities impairment losses of ¥13.2 billion (vs. ¥1.1 billion), and a 17.8% rise in operating, general and administrative expenses to ¥1,650.6 billion. Special items included impairment losses of ¥4.0 billion, a ¥8.9 billion transfer to the price-fluctuation reserve, and losses on disposal of fixed assets of ¥5.8 billion. Special profits of ¥7.9 billion came from disposal gains on fixed assets, with no negative goodwill recognized this year (vs. ¥3.3 billion prior year).
Strategic M&A: Ignyte and Agrihedge add ¥253 billion in U.S. specialty
Two acquisitions reshaped the U.S. specialty platform. In October 2025, the group acquired 100% of Riser Topco III, LLC and three affiliates (Ignyte Insurance) via Philadelphia Insurance for ¥102.8 billion, generating ¥52.6 billion in goodwill plus ¥42.4 billion in intangibles (distribution network and trademarks, 20-year amortization), targeting the U.S. collector-car insurance market. In January 2026, the group acquired Agrihedge, Inc. (CIH), a U.S. agricultural price-risk solutions provider, for ¥150.0 billion, recognizing ¥73.1 billion in goodwill and ¥100.1 billion in intangibles (chiefly contract renewal rights, 9-year amortization). The deal expands HCC's agricultural insurance franchise with non-insurance fee-based capabilities.
Balance sheet, cash flow, dividend raised to ¥218
Total assets stood at ¥31,961.9 billion (+¥724.5 billion), net assets reached ¥5,457.5 billion (+¥354.0 billion), and the equity ratio improved to 17.0% from 16.3%. Book value per share rose to ¥2,885.44 from ¥2,640.27. Operating cash flow was ¥584.2 billion (down from ¥1,345.0 billion, due primarily to ¥483.5 billion in tax payments and working-capital movements), investing cash flow was a positive ¥639.7 billion, and financing activities used ¥624.2 billion (¥251.5 billion of treasury share buybacks plus ¥375.7 billion of dividend payments). Cash and equivalents ended at ¥2,085.0 billion. The annual dividend rose to ¥218.00 per share (¥105.50 interim + ¥112.50 year-end), up from ¥172.00 in FY2025/3, equating to a consolidated payout ratio of 42.3%.
Subsequent events: Berkshire alliance, ¥287bn placement, ¥200bn buyback
Post-period actions are unusually large. The group announced a comprehensive strategic partnership with National Indemnity Company (a wholly owned subsidiary of Berkshire Hathaway Inc.), including a strategic investment, reinsurance collaboration, and joint M&A initiatives. A third-party allotment of 48,207,200 treasury shares was completed on April 13, 2026, at ¥5,962 per share, raising ¥287.4 billion. To offset dilution, the board approved share buybacks of up to ¥287.4 billion (April–September 2026); additionally, on May 20, 2026, the board approved a further buyback of up to 130 million shares and ¥200.0 billion, executable from May 21 through December 23, 2026.
FY27 guidance under IFRS: ¥830bn profit, ¥245 dividend
For FY3/2027, the company forecasts profit attributable to owners of ¥830.0 billion, up 56.2% YoY, with basic EPS of ¥441.83. Importantly, FY27 guidance is presented under IFRS, which the group will voluntarily adopt from the FY26 securities report onward to enhance international comparability — the growth rate is calculated against the (unaudited) IFRS-restated FY3/2026 results. Guidance assumes domestic natural-catastrophe net incurred losses of ¥105.0 billion and overseas of ¥95.0 billion, with broadly stable market rates, FX and equity prices versus end-March 2026. The dividend forecast is ¥245.00 per share (¥122.50 interim + ¥122.50 year-end).
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Ordinary income (¥ billion) | 8,872.2 | 8,440.1 | +5.1% |
| Net premiums written (¥ billion) | 5,566.3 | 5,305.4 | +4.9% |
| Ordinary profit (¥ billion) | 1,348.6 | 1,459.4 | −7.6% |
| Net profit attrib. to owners (¥ billion) | 980.4 | 1,055.2 | −7.1% |
| Basic EPS (¥) | 515.55 | 542.16 | −4.9% |
| ROE | 18.7% | 20.6% | −1.9pp |
| Total assets (¥ billion) | 31,961.9 | 31,237.4 | +2.3% |
| Equity ratio | 17.0% | 16.3% | +0.7pp |
| Annual dividend (¥) | 218.00 | 172.00 | +26.7% |
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.