Sompo Holdings,inc. · TSE:8630
Sompo Holdings,inc — Q2 2025 Earnings Presentation
37 slides from Sompo Holdings,inc's earnings presentation, Nov 26, 2025
Slide 1: Supplementary Materials
Supplementary Materials November 25, 2025 Sompo Holdings, Inc. All rights reserved.
Slide 2: Index
1. Group Strategy Progress of Mid-Term Adjusted Consolidated Profit 4 Management Plan (Reference) Adjusted Profit and Adjusted ROE by Business 5 Next Growth Investment 6 Growth Investment ESR 7 Capital Strategy Reduction of Strategic Shareholding 8 Shareholder Return Policy 9 Group Investment Strate
Slide 3: 1. Group Strategy
SOMPO 1. Group Strategy
Slide 4: Adjusted Consolidated Profit
Group SOMPO P&C SOMPO Wellbeing Adjusted Consolidated Profit Domestic P&C Overseas Domestic Life Nursing Care SJ SIH • Adjusted consolidated profit for FY2025 is expected to be ¥440.0 bn, significantly higher than the initial forecast by ¥77.0 mn • Aim to increase profits in FY2026 onwards through o
Slide 5: (Reference) Adjusted Profit and Adjusted ROE by Business
Group SOMPO P&C SOMPO Wellbeing (Reference) Adjusted Profit and Adjusted ROE by Business Domestic Overseas Domestic Nursing P&C Life Care SJ SIH Domestic Adjusted profit Adjusted ROE Overseas Adjusted profit Adjusted ROE P&C (¥ bn) Higher than ($ mn) Higher than expected expected 173.0 12.5% 1,500 +
Slide 6: Next Growth Investment
Group SOMPO P&C SOMPO Wellbeing Next Growth Investment Domestic P&C Overseas Domestic Life Nursing Care SJ SIH • Even with the completion of the Aspen deal, the capacity for growth investment is projected to be sufficient through accelerated sale of strategic shareholding and higher-than- expected p
Slide 7: ESR
Group SOMPO P&C SOMPO Wellbeing ESR Domestic P&C Overseas Domestic Life Nursing Care SJ SIH • ESR was 251% at the end of September 2025 • Capital is appropriately managed in light of the accelerated sale of strategic shareholding and growth investment pipeline ESR (99.5%VaR) Risk profile (As of end-
Slide 8: Reduction of Strategic Shareholding
Group SOMPO P&C SOMPO Wellbeing Reduction of Strategic Shareholding Domestic P&C Overseas Domestic Life Nursing Care SJ SIH • The reduction target of strategic shareholding for FY2025 was revised up by ¥50.0 bn to ¥250.0 bn from the beginning-of-year forecast, with progress being accelerated toward
Slide 9: Shareholder Return Policy
Group SOMPO P&C SOMPO Wellbeing Shareholder Return Policy Domestic P&C Overseas Domestic Life Nursing Care SJ SIH • Considering the projected acceleration of EPS growth from +14% to +18% driven by growth investments, we will explore further accelerating our DPS growth rate • Alongside an anticipated
Slide 10: Group Investment Strategy
Group SOMPO P&C SOMPO Wellbeing Group Investment Strategy Domestic P&C Overseas Domestic Life Nursing Care SJ SIH • Aim to maximize investment income and capital efficiency by managing the Group investment portfolio as one and leveraging the expertise of Group companies • Strengthen Group investment
Slide 11: SOMPO's DDAX (Digital, Data and AI Transformation)
Group SOMPO P&C SOMPO Wellbeing SOMPO’s DDAX (Digital, Data and AI Transformation) Domestic P&C Overseas Domestic Life Nursing Care SJ SIH • Established an AI Center of Excellence at Sompo Holdings to transform the entire business operations, working on disciplined AI projects through four task forc
Slide 12: Talent Strategy
Group SOMPO P&C SOMPO Wellbeing Talent Strategy Domestic P&C Overseas Domestic Life Nursing Care SJ SIH • Implement measures to strengthen talent and HR system reform to build a group of talent that exemplifies SOMPO’s Values (Integrity, Self- motivation, Diversity) • Strengthened solution sales cap
Slide 13: Sustainability
Group SOMPO P&C SOMPO Wellbeing Sustainability Domestic P&C Overseas Domestic Life Nursing Care SJ SIH • SOMPO is seriously committed to addressing sustainability challenges, such as climate change, biodiversity, business and human rights, through collaboration and engagement with stakeholders • Uti
Slide 14: Stock Performance and Valuation
Group SOMPO P&C SOMPO Wellbeing Stock Performance and Valuation Domestic P&C Overseas Domestic Life Nursing Care SJ SIH • SOMPO stock has risen steadily from FY2024 when the current Mid-Term Management Plan commenced. Driven by profit growth and other factors, it outperformed both domestic peers and
Slide 15: (Reference) Definition of IFRS Adjusted Profit
Group SOMPO P&C SOMPO Wellbeing (Reference) Definition of IFRS Adjusted Profit Domestic Overseas Domestic Nursing P&C Life Care SJ SIH Definition of IFRS Adjusted profit SOMPO P&C SOMPO Wellbeing Other Others*2 Domestic P&C*1 Overseas*1 Domestic Life Nursing Care Wellbeing Base profit IFRS net incom
Slide 16: 2. Business Strategy (Domestic P&C Business)
2. Business Strategy (Domestic P&C Business) 16
Slide 17: Improving Profit Centered on SJ-R
Group SOMPO P&C SOMPO Wellbeing Improving Profit Centered on SJ-R Domestic Overseas Domestic Nursing Care P&C Life SJ SIH • For the full FY2025, enhanced pricing, strengthened underwriting, optimized reinsurance, G&A expense reduction, etc. are expected to boost profit by about ¥46 bn • Underwriting
Slide 18: Improving Auto Underwriting Results
Group Improving Auto Underwriting Results SOMPO P&C Domestic P&C Overseas SOMPO Wellbeing Domestic Life Nursing Care SJ SIH • Additional measures to improve the combined ratio for auto insurance are needed since traffic volume and cost of repair increased more than expected. • Aim to bring down the
Slide 19: Improving Fire Underwriting Results
Group Improving Fire Underwriting Results SOMPO P&C Domestic P&C Overseas SOMPO Wellbeing Domestic Life Nursing Care SJ SIH • Portfolio reform initiatives have yielded results and the combined ratio improved for both FY2024 and FY2025 (full-year forecast) • Aim to bring down the combined ratio to th
Slide 20: Other Growth and Profit Initiatives
Group Other Growth and Profit Initiatives SOMPO P&C Domestic P&C Overseas SOMPO Wellbeing Domestic Life Nursing Care SJ SIH • Initiatives to improve profitability through more detailed product segmentation than before are implemented based on the portfolio strategy under SJ-R • Focus not only on org
Slide 21: Expense Ratio Outlook
Group Expense Ratio Outlook SOMPO P&C Domestic P&C Overseas SOMPO Wellbeing Domestic Life Nursing Care SJ SIH • The expense ratio for FY2025 is expected to be 33.1% (-0.8pt YoY) as a result of commission rate adjustment and G&A expense reduction • Aim to bring down the expense ratio to the 30% level
Slide 22: Progress of Other SJ-R Initiatives
Group Progress of Other SJ-R Initiatives SOMPO P&C Domestic P&C Overseas SOMPO Wellbeing Domestic Life Nursing Care SJ SIH • Good progress on SJ-R initiatives has been made in each area toward the vision of the “New Sompo Japan” Focus area Keyword Example of progress • Rolled out an operations refer
Slide 23: Initiatives and Outlook on Changing Industry Practices
Group SOMPO P&C SOMPO Wellbeing Initiatives and Outlook on Changing Industry Practices Domestic Overseas Domestic Nursing Care P&C Life SJ SIH • Correcting old industry practices in accordance with the Business Improvement Plan • For each measure, guidelines and rules are reviewed in a timely and ap
Slide 24: Progress of Business Improvement Plan
Group Progress of Business Improvement Plan SOMPO P&C Domestic P&C Overseas SOMPO Wellbeing Domestic Life Nursing Care SJ SIH • Sompo Japan is steadily implementing the Business Improvement Plan to change corporate culture, improve governance, and solve the structural issues of the P&C insurance ind
Slide 25: 2. Business Strategy (Overseas Business)
2. Business Strategy (Overseas Business)
Slide 26: 2024 - 2026 mid-term financial targets remain on track
Group SOMPO P&C SOMPO Wellbeing 2024 - 2026 mid-term financial targets remain on track Domestic Overseas Domestic Nursing Care P&C Life SJ • Mid-term financial targets remain on track • On track to deliver $1B gross written premium from growth strategies by year-end 2025, one year ahead of schedule
Slide 27: Overseas Gross Written Premium Composition by LOB
Group SOMPO P&C SOMPO Wellbeing Overseas Gross Written Premium Composition by LOB Domestic Overseas Domestic Nursing Care P&C Life SJ • Diversified P&C portfolio across Reinsurance, Commercial, Agriculture and Consumer Insurance lines of business • Strong growth across segments except Agriculture du
Slide 28: Gross Written Premium Composition by LOB
Group SOMPO P&C SOMPO Wellbeing Gross Written Premium Composition by LOB Domestic Overseas Domestic Nursing Care P&C Life SJ • P&C portfolio well-diversified across lines of business Reinsurance GWP Composition by LOB* Commercial GWP Composition by LOB* 12% 6% 17% 31% 13% $4.3B $6.0B FY2025 YTD 54%
Slide 29: Overseas Combined Ratio Trend
Group Overseas Combined Ratio Trend SOMPO P&C Domestic Overseas SOMPO Wellbeing Domestic Nursing Care P&C Life SJ • Combined ratio expected to remain consistent Combined ratio* 99.5% 95.3% 96.3% 96.2% 28.4% 26.1% 30.5% 30.3% Expense ratio 3.3% 6.6% 4.0% 3.1% Catastrophe loss ratio 67.7% Loss ratio e
Slide 30: 2. Business Strategy (Domestic Life Business)
2. Business Strategy (Domestic Life Business) 30
Slide 31: Progress of Mid-Term Management Plan
Group SOMPO P&C SOMPO Wellbeing Progress of Mid-Term Management Plan Domestic P&C Overseas Domestic Life Nursing Care SJ SIH • Advance new contract acquisitions toward FY2026 to expand revenue Adjusted profit New Business CMS ROE*1 FY2026 KPI KPI Plan ¥70.0 bn level (FY2026) ¥93.0 bn level (FY2026)
Slide 32: CSM
Group CSM SOMPO P&C Domestic P&C Overseas SOMPO Wellbeing Domestic Life Nursing Care SJ SIH • The change in the contractual service margin (CSM) excluding external effects, etc. was positive due to the accumulation of new business CSM CSM (¥ bn) CSM balance New business CSM Interest* Amortization Ot
Slide 33: 2. Business Strategy (Nursing Care Business)
2. Business Strategy (Nursing Care Business) 33
Slide 34: Progress of Mid-Term Management Plan
Group Progress of Mid-Term Management Plan SOMPO P&C Domestic P&C Overseas SOMPO Wellbeing Domestic Life Nursing Care SJ SIH • In 1H FY2025, adjusted profit and ROE were in line with the plan, while the occupancy rate was lowered than planned • As for the full FY2025 forecasts, adjusted profit and R
Slide 35: Nursing Care Business Portfolio Reform
Group Nursing Care Business Portfolio Reform SOMPO P&C Domestic P&C Overseas SOMPO Wellbeing Domestic Life Nursing Care SJ SIH • In the nursing care business, SOMPO is striving to deliver value beyond the traditional framework of nursing care through the three pillars of operator business, platform
Slide 36: Progress of Mid-Term Management Plan Initiatives
Group SOMPO P&C SOMPO Wellbeing Progress of Mid-Term Management Plan Initiatives Domestic Overseas Domestic Nursing Care P&C Life SJ SIH • In 1H FY2025, both the operator business and platform business were on track • The initiatives are expected to yield results as planned at the beginning of the y
Slide 37: Note Regarding Forward-looking Statements
Note Regarding Forward-looking Statements Forecasts included in this document are based on currently available information and certain assumptions that we consider reasonable at this point in time. Actual results may differ materially from those projected herein depending on various factors. Contact