Tokio Marine Holdings, Inc. (TSE: 8766) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) — its first set of results presented under IFRS, voluntarily adopted from this year's securities report (with the prior year restated for comparability). Insurance revenue rose 4.0% year-on-year to ¥7,693,560 million, pre-tax profit jumped 25.9% to ¥750,700 million, and period profit climbed 32.6% to ¥572,193 million. Profit attributable to owners of the parent rose 17.9% to ¥531,255 million from ¥450,423 million, lifting basic EPS to ¥279.35 from ¥231.41 (diluted ¥279.15). ROE attributable to owners improved to 7.1% from 6.2%.
Underwriting result strengthens, comprehensive income surges
The insurance service result — insurance revenue of ¥7,693.6 billion less insurance service expense of ¥6,114.4 billion and a ¥429.5 billion reinsurance loss — improved by ¥186.9 billion to ¥1,149.6 billion. The financial result eased ¥5.5 billion to ¥25.2 billion, as a ¥666.6 billion investment gain was largely offset by ¥641.3 billion of net insurance finance expense. The most striking swing was below the line: comprehensive income soared to ¥1,535,853 million from just ¥113,521 million a year earlier — a more than thirteen-fold increase — driven by gains on equity securities, foreign-currency translation of overseas operations, and movements in insurance-contract discount rates.
International insurance drives the group; domestic life swings to a loss
By reporting segment the picture was uneven. International insurance was the engine: insurance revenue rose ¥199.2 billion to ¥4,448.3 billion and segment profit attributable to owners advanced ¥112.1 billion to ¥502.7 billion, underscoring how central the group's U.S. specialty platforms have become. Domestic non-life — the Tokio Marine & Nichido core — lifted insurance revenue ¥105.5 billion to ¥3,040.7 billion and segment profit ¥103.9 billion to ¥237.6 billion. The weak spot was domestic life, where insurance revenue slipped ¥1.4 billion to ¥265.4 billion and the segment swung to a ¥204.8 billion loss from a ¥20.5 billion profit — a ¥123.8 billion deterioration — even as the contractual service margin (CSM) balance grew ¥31.8 billion to ¥1,149.7 billion. The Solutions & Other segment posted other revenue of ¥327.6 billion (+¥149.4 billion) and segment profit of ¥14.5 billion (+¥2.6 billion).
Balance sheet expands; operating cash flow stays robust
Total assets grew 8.2% to ¥33,002,651 million (¥33.0 trillion), up ¥2.5 trillion on the year, while total equity rose ¥939.7 billion to ¥8,052,371 million and equity attributable to owners reached ¥7,955,554 million. The owners' equity-to-assets ratio firmed to 24.1% from 23.2%, and book value per share climbed to ¥4,235.02 from ¥3,684.66. Operating cash flow remained strong at ¥1,390,562 million (down from ¥2,013,920 million as the prior year was unusually high), against a ¥402,738 million investing outflow and a ¥642,094 million financing outflow. Period-end cash and equivalents rose ¥392.6 billion to ¥2,332,406 million.
Berkshire Hathaway strategic partnership; bolt-on U.S. acquisitions
The most consequential subsequent event was a comprehensive strategic partnership with National Indemnity Company, a wholly owned reinsurance subsidiary of Berkshire Hathaway Inc. Resolved on March 23, 2026 and completed on April 13, 2026, the tie-up covers a strategic equity investment in Tokio Marine, reinsurance collaboration, and joint M&A. To effect it, Tokio Marine disposed of 48,207,200 treasury shares to National Indemnity at ¥5,962 per share — a total of ¥287.4 billion. To contain the resulting dilution, the board authorized treasury-share buybacks of up to ¥287.4 billion between April and September 2026, plus a separate buyback of up to ¥200 billion (130 million shares) running May 21 to December 23, 2026. During the year the group also completed two U.S. bolt-on deals: Ignyte Insurance, a collector-car agency business acquired through Philadelphia Indemnity for ¥102.8 billion (goodwill ¥54.5 billion), and Agrihedge, Inc., a U.S. agricultural price-risk solutions provider, for ¥150.0 billion (goodwill ¥71.8 billion).
Dividend raised to ¥218; FY27 guides net profit up 56%
The FY3/2026 annual dividend was lifted to ¥218.00 per share (¥105.50 interim + ¥112.50 year-end) from ¥172.00, with a consolidated payout ratio of 74.3%. For FY3/2027, management guides a further increase to ¥245.00 annual (¥122.50 interim + ¥122.50 year-end). Full-year FY3/2027 guidance points to profit attributable to owners of ¥830,000 million (+56.2%) with EPS of ¥441.83. The forecast assumes domestic natural-catastrophe losses of ¥105.0 billion and overseas losses of ¥95.0 billion, with market rates, exchange rates, and equity prices held broadly unchanged from end-March 2026 levels.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Insurance revenue (¥ billion) | 7,693.6 | 7,396.2 | +4.0% |
| Pre-tax profit (¥ billion) | 750.7 | 596.3 | +25.9% |
| Period profit (¥ billion) | 572.2 | 431.5 | +32.6% |
| Profit attrib. to owners (¥ billion) | 531.3 | 450.4 | +17.9% |
| Basic EPS (¥) | 279.35 | 231.41 | +20.7% |
| Comprehensive income (¥ billion) | 1,535.9 | 113.5 | +1,252.9% |
| ROE (owners) | 7.1% | 6.2% | +0.9pp |
| Total assets (¥ billion) | 33,002.7 | 30,497.4 | +8.2% |
| BVPS (¥) | 4,235.02 | 3,684.66 | +14.9% |
| Annual dividend (¥) | 218.00 | 172.00 | +26.7% |
| FY27 profit-attrib. guidance (¥ billion) | 830.0 | — | +56.2% |
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.