The move aims to align with global standards, streamline performance management, and reduce the conservatism of domestic life insurance accounting. The transition will occur over a year, with IFRS statements disclosed alongside GAAP reporting during the shift.
Sompo emphasized that IFRS-adjusted profit and return on equity (ROE) will better reflect normalized earnings by minimizing volatility. The company assured that the changes are technical in nature and will have no impact on business strategy.
Sompo's medium-term growth targets, already set on an IFRS basis, remain unchanged. For fiscal 2023, IFRS-adjusted consolidated profit is projected at ¥335 billion (US$2.32 billion), while fiscal 2024 forecasts predict ¥320 billion—an increase of approximately ¥50 billion under the new standard.
The group highlighted that domestic property/casualty insurance profits will rise due to economic valuation of liabilities, while domestic life insurance gains will focus on contract service margins, representing unearned profits from insurance contracts. Overseas operations may see accounting adjustments due to differences in periods and foreign exchange rates.
Sompo also noted there would be no significant impact on its nursing care business.
Separately, the insurer recently obtained licenses to write primary insurance in Belgium and the Netherlands, expanding its property/casualty offerings in Europe. It already operates in Germany, France, Spain, Italy, and Switzerland. Sompo's underwriting entities maintain an A+ (Superior) financial strength rating.
The fiscal year for Japan ends on March 31.
