Tokio Marine Holdings has revised its full-year adjusted net income forecast upward by ¥40 billion (approximately US$258 million), citing factors such as accelerated sales of business-related equities and strong international underwriting.
The company noted that with these figures, the updated forecast now stands at ¥1.04 trillion (around US$6.71 billion).
For the first half of the fiscal year, the group reported adjusted net income of ¥771.2 billion (approximately US$4.98 billion), achieving 77% of its initial full-year forecast. The company attributed the performance to favourable underwriting trends, foreign exchange gains, and robust international business growth, although these were partially offset by Current Expected Credit Loss (CECL) provisions related to commercial real estate loans.
Tokio Marine reported a 5.7% year-on-year increase in net premiums written for the first half, excluding foreign exchange effects, supported by rate increases in Japan and internationally. However, life insurance premiums declined by 32.9% due to block reinsurance transactions within Japan Life.
For the full year, net premiums written are expected to grow by 5.3% year-on-year, driven by stricter underwriting in Japan’s property and casualty segment. Life insurance premiums, however, are projected to decline by 15.9%, excluding forex effects.
In line with its performance, Tokio Marine said that it plans to increase its dividend per share (DPS) for fiscal year 2024 by ¥3, bringing it to ¥162. Additionally, the company announced an expansion of its share buyback programme by ¥20 billion (approximately US$129 million) to ¥220 billion (around US$1.42 billion).
The expanded shareholder returns reflect profit growth exceeding initial expectations, while also accounting for ongoing M&A activity, including the recently announced tender offer for ID&E Holdings.
Despite upward revisions to the full-year forecast, the company’s normalised adjusted net income remains at ¥1.024 trillion (US$6.61 billion), as stronger underwriting performance in North America and Brazil is offset by reduced profits in Asia’s life insurance markets.
Group CEO Satoru Komiya (pictured above) attributed the company’s first-half results to its globally diversified portfolio and strong underwriting focus.
“Increasing shareholder returns, including increased DPS and share repurchases, underscore our commitment to sustainable growth and delivering strong financial performance and value to shareholders. Furthermore, through this EPS growth and disciplined capital policy, we will further enhance our ROE,” Komiya said.
Tokio Marine Holdings has a market capitalisation of $75.5 billion as of November 18, 2024. The company operates in Japan and 44 other countries and regions, employing 44,000 people globally.
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