MS&AD Insurance Group Holdings has reported a rise in net premiums written and net income for the third quarter of the 2024 financial year, with growth driven by increased profitability across domestic and international insurance segments.
Net premiums written rose by ¥340.8 billion (approx. £1.77 billion), a 10.5% increase year-on-year, reaching ¥3,571.2 billion. Net income increased by ¥344.4 billion to ¥626.0 billion, representing a progress rate of 99.4% on the company’s revised forecast in November.
Group adjusted profit also increased by ¥366.5 billion to ¥633.9 billion, with a progress rate of 94.6%.
The domestic non-life insurance segment saw a ¥289.6 billion increase in net income, reaching ¥432.8 billion. The growth was attributed to a reduction in natural catastrophe losses, an increase in net written premiums, and a rise in investment profits.
MS&AD says that higher profits were driven by the sale of strategic equity holdings, along with dividend and interest income.
The domestic life insurance segment recorded a ¥2.4 billion increase in profit, bringing total earnings to ¥44.3 billion.
Despite valuation losses on bonds due to rising US interest rates, the company says that profitability increased primarily due to a decline in policy reserve provisions at MSP Life, following a number of contracts reaching investment targets earlier in the year.
The previous year also marked important developments for MS&AD, with the company announcing the issuance of two catastrophe bonds, each valued at US$100 million.
Internationally, the company experienced a ¥75.2 billion increase in net income, reaching ¥156.3 billion. This was attributed to improved profitability, higher premium volumes, a reduction in natural catastrophe losses, and stronger investment returns.
Net premiums written across MS&AD's overseas subsidiaries grew by ¥244.3 billion, largely due to business expansion and foreign exchange effects. Excluding currency fluctuations, the increase stood at ¥145.2 billion.
Domestic non-life insurance net premiums written rose by ¥96.4 billion to ¥2,351.1 billion, driven by increased automobile and fire insurance sales. In contrast, the domestic life insurance segment saw a ¥72.4 billion decline in gross premium income, falling to ¥1,261.6 billion.
This was attributed to a rebound from strong new product sales at MSP Life in the previous fiscal year.
MS Amlin Underwriting Limited (MS AUL), which includes Lloyd’s Syndicate 2001, Amlin Corporate Member Limited, and AUL Holdings Limited, reported steady year-on-year growth. Profit after tax rose from £97 million to £103 million, while underwriting profits increased to £130 million.
Net financial results improved significantly, moving from a neutral position in 2023 to £29 million in 2024. Investment returns rose from £23 million to £76 million, reflecting portfolio expansion and asset base recovery following RITC restructuring.
Net premiums written declined from £1,250 million to £1,110 million. However, adjusting for changes in quarterly estimation methods for delegated authority business, the company reported a like-for-like increase to £1,357 million, representing an 8.6% rise compared to Q3 2023.
MS AUL’s expense ratio decreased by 0.8 percentage points to 36.4%, while its combined ratio increased slightly from 87.6% to 88.8%.
The company cited robust underwriting discipline and risk selection strategies in maintaining profitability, despite market challenges including Hurricane Helene and the Baltimore Bridge loss earlier in the year.
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