Sompo Holdings,inc. · TSE:8630
Sompo Holdings,inc — Q3 2024 Earnings Presentation
51 slides from Sompo Holdings,inc's earnings presentation, Nov 27, 2024
Slide 1: Highlights of 3Q FY2024 Results
Highlights of 3Q FY2024 Results February 14, 2025
Slide 2: Index
Index Executive Summary 3 Combined Ratio (SI Commercial P&C) 29 Key Points of the Financials (1) Domestic P&C 4 SI Consumer Performance Overview 30 Key Points of the Financials (2) Overseas 5 Asset Portfolio/Investment Income 31 Group consolidated Results (Reference) Overseas Natural Disasters (SI C
Slide 3: Executive Summary
Executive Summary ⚫ Adjusted consolidated profit for 3Q FY2024 was ¥235.6 bn., making steady progress • Consolidated net income increased by +¥58.8 bn. to ¥381.8 bn. (the highest 3Q profit ever), mainly due to the accelerated Group reduction of strategic holding stocks Consolidated ⚫ On an upward tr
Slide 4: Key Points of Financial Results (1) Domestic P&C
Key Points of Financial Results (1) Domestic P&C Auto Natural disasters Strategic holding stocks • The amount of reduction in strategic holding stocks in 3Q • The impact of natural disasters in 3Q FY2024 was • Accident rate in 3Q FY2024 was -0.5%, FY2024 was ¥328.5 bn., and the gain on sales (before
Slide 5: Key Points of Financial Results (2) Overseas
Key Points of Financial Results (2) Overseas FY2024 Natural disaster Draft actual • Adjusted profit for FY2024 (draft actual) increases by ¥54.1 bn. to ¥217.3 bn. (+¥23.3 bn. vs. forecast), mainly due to continued strong performance • Natural disaster related losses for FY2024 (draft actual) are $41
Slide 6: Group Consolidated Results
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Slide 7: Breakdown of Adjusted Consolidated Profit (3Q FY2024)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Breakdown of Adjusted Consolidated Profit (3Q FY2024) • Adjusted consolidated profit for 3Q FY2024 was roughly the same as the previous year at ¥235.6 bn., mainly due to increase in net investment income in Overseas insurance/reinsura
Slide 8: (Reference) Breakdown of Adjusted Consolidated Profit (FY2024)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Breakdown of Adjusted Consolidated Profit (FY2024) Repost of Highlights of 1H FY2024 results Increase/decrease factors of adjusted profit (after tax) Conversion to consolidated net income (¥ bn.) Domestic Overseas Domestic
Slide 9: (Reference) FY2024 Forecast
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) FY2024 Forecast Repost of Highlights of 1H FY2024 results • Adjusted consolidated profit for FY2024 is expected to increase by ¥15.0 bn. from initial forecast (¥270.0 bn., same level as previous year) due to continued grow
Slide 10: (Reference) Consolidated Financials
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Consolidated Financials 3Q results Full-year results 3Q 3Q FY2023 FY2024 Variance (¥ bn.) Variance Initial forecast Forecast Variance FY2023 FY2024 Actual（A） （C－A） （B） （C） （C－B） Consolidated ordinary income 3,848.5 4,151.0
Slide 11: Results by Business
Results by Business Domestic P&C Insurance Business (Sompo Japan) 11 Overseas Insurance/Reinsurance Business 26 Domestic Life Insurance Business 35 Nursing Care Business 43 ERM 46
Slide 12: Breakdown of Adjusted Profit (Sompo Japan)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Breakdown of Adjusted Profit (Sompo Japan) • Adjusted profit for 3Q FY2024 was ¥47.9 bn., which was higher than expected • The rise in the loss ratio for Auto was partially offset by a decrease in natural disasters and an improvement
Slide 13: Underwriting Profit (Sompo Japan)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Underwriting Profit (Sompo Japan) • Core underwriting profit for 3Q FY2024 was ¥6.8 bn., with the increase in the loss ratio for Auto offset in part by the decrease in the impact of natural disasters • Progress outperforms plan due to
Slide 14: Net Premiums Written (Sompo Japan)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Net Premiums Written (Sompo Japan) • Net premiums written for 3Q FY2024 increased by +¥45.8 bn. YoY to ¥1,543.8 bn. • The main factors were the optimization of insurance rates and an increase in the insurance policies renewed in Fire,
Slide 15: Combined Ratio (Sompo Japan)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Combined Ratio (Sompo Japan) • Combined ratio for 3Q FY2024 was 99.9% • The increase in the loss ratio for Auto and the impact of depreciation costs for new enterprise IT systems were offset in part by a decrease in the impact of natu
Slide 16: Loss Ratio (Sompo Japan)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Loss Ratio (Sompo Japan) • The loss ratio for 3Q FY2024 was roughly the same level as the previous year, with an increase in incurred losses in Auto offset in part by a decrease in the impact of natural disasters Loss ratio (E/I) (exc
Slide 17: Expense Ratio (Sompo Japan)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Expense Ratio (Sompo Japan) • The expense ratio for 3Q FY2024 was 33.7% due to depreciation for the new enterprise IT system partially offset by the reduction in Fire insurance commission • The expense ratio, excluding depreciation fo
Slide 18: Investment Profit (Sompo Japan)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Investment Profit (Sompo Japan) • Investment profit (adjusted profit basis) for 3Q FY2024 was ¥64.1 bn. due to increase in domestic stock dividend and gains and losses related to funds • The amount of reduction in strategic holding st
Slide 19: (Reference) Indicators Related to Auto Insurance (1)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Indicators Related to Auto Insurance (1) (Sompo Japan) Combined ratio (E/I) Renewal rate in non-fleet Auto insurance Loss ratio Expense ratio Combined ratio Progress of 3Q Rise in unit repair cost(+3.5pt), High levels sinc
Slide 20: (Reference) Indicators Related to Auto Insurance (2)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Indicators Related to Auto Insurance (2) (Sompo Japan) Rate of increase in unit repair cost*2 Number of auto insurance reported claims*1 （Increase over prior year） (thousand) -4.8% Progress of 3Q 2,061 1,963 1,886 1,774 1,
Slide 21: (Reference) Indicators Related to Fire & Allied, Casualty (Others)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Indicators Related to Fire & Allied, Casualty (Others) (Sompo Japan) Casualty (Other) insurance net premiums written and Fire & Allied insurance* combined ratio (E/I) combined ratio (E/I) （¥ bn.） Loss ratio Expense ratio C
Slide 22: (Reference) Domestic Natural Disasters
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Domestic Natural Disasters (Sompo Japan) Net incurred losses related to domestic natural disasters (accident year basis)* Net Incurred loss （¥ bn.） Major Events Month (estimated value) Hail storm (Hyogo, etc.） Apr. ¥33.0 b
Slide 23: (Reference) Asset Portfolio (Sompo Japan)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Asset Portfolio (Sompo Japan) Asset portfolio (as of the end of Dec. 2024, General account) Breakdown of interest and dividend income Breakdown of gains/losses on sales of securities Foreign securities (¥ tn.) (¥ bn.) (¥ b
Slide 24: (Reference) Conversion from Adjusted Profit to Net Income (Sompo Japan)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Conversion from Adjusted Profit to Net Income (Sompo Japan) Conversion from adjusted profit to net income (¥ bn.) Catastrophic loss Gains/losses on Others* Reserve for reserve, etc. price fluctuation sales of securities an
Slide 25: (Reference) Financials (Sompo Japan)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Financials (Sompo Japan) 3Q results Full-year results (¥ bn.) FY2024 YoY FY2023 3Q 3Q Actual Initial Forecast Variance Variance FY2023 FY2024 Variance （A） forecast （C） （C－B） （C－A） （B） Net premiums written（total） 1,646.8 1,
Slide 26: Results by Business
Results by Business Domestic P&C Insurance Business (Sompo Japan) 11 Overseas Insurance/Reinsurance Business 26 Domestic Life Insurance Business 35 Nursing Care Business 43 ERM 46
Slide 27: Breakdown of Adjusted Profit (Overseas Insurance/Reinsurance Business)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Breakdown of Adjusted Profit (Overseas Insurance/Reinsurance Business) • 3Q FY2024 adjusted profit of $1,059 mn. increased $198 mn. year-over-year due to strong growth in underwriting income (ex. G&A) and net investment income, partia
Slide 28: Top-line (SI Commercial P&C)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Top-line (SI Commercial P&C） • $542 mn. increase YoY in 3Q FY2024 gross premiums written from growth in Global Markets and Reinsurance partially offset by lower commodity prices in AgriSompo • Approximately $400 mn. contribution to 3Q
Slide 29: Combined Ratio (SI Commercial P&C)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Combined Ratio (SI Commercial P&C) • 3Q FY2024 combined ratio increased +1.3pt to 93.7% primarily driven by increased operating expenses to support growth partially offset by lower adverse prior year development relative to 3Q FY2023
Slide 30: SI Consumer Performance Overview
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life SI Consumer Performance Overview • 3Q FY2024 net premiums written increased $182 mn. YoY excluding the impact of the Brazil consumer sale primarily resulting from inflation-related rate increases in Turkey Net premiums written 3Q 3Q F
Slide 31: Asset Portfolio/Investment Income (Overseas business)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Asset Portfolio/Investment Income (Overseas business) • 3Q FY2024 Investment income of $999 mn. increased 42% due to higher book yields and larger assets under management • Asset under management of $22.3 bn., with fixed income book y
Slide 32: (Reference) Overseas Natural Disasters (SI Commercial)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life （Reference）Overseas Natural Disasters（SI Commercial） Net incurred losses related to overseas natural disasters* (accident year) （$ mn.） Loss ratio impact （vs. Net premiums earned） 40.0% 570 (Reference) Progress of 3Q FY2024 (Draft act
Slide 33: (Reference) Conversion from Adjusted Profit to Net Income
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Conversion from Adjusted Profit to Net Income Conversion from adjusted profit to net income* (¥ bn.) Net foreign Net realized and unrealized gains, Discounting on liability Others exchange gains net impairment losses, etc.
Slide 34: (Reference) Financials
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Financials 3Q results Full-year results 3Q 3Q FY2023 FY2024 Variance Variance FY2023 FY2024 (Actual) (Forecast) Overseas Commercial Consumer Corporate Overseas Overseas Overseas Overseas Overseas Gross premiums written 12,
Slide 35: Results by Business
Results by Business Domestic P&C Insurance Business (Sompo Japan) 11 Overseas Insurance/Reinsurance Business 26 Domestic Life Insurance Business 35 Nursing Care Business 43 ERM 46
Slide 36: Breakdown of Adjusted Profit (Himawari Life)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Breakdown of Adjusted Profit (Himawari Life) • Adjusted profit for 3Q FY2024 increased by +¥1.0 bn. YoY due to an increase in investment income exceeding the impact of increased expense and claim payment Increase/decrease factors of a
Slide 37: Annualized Premiums
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Annualized Premiums • Annualized premiums in-force at the end of 3Q FY2024 had steadily increased by +¥4.2 bn. due to the accumulation of protection-type products • For the full year of FY 2024, we will leverage new products in the In
Slide 38: Expense
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Expense • Expenses for 3Q FY2024 were ¥74.0 bn., below the planned level, by controlling operating expenses to -¥0.7 bn. YoY Expense General expense Operating expense (¥ bn.) (¥ bn.) General expense Acquisition cost Policy related exp
Slide 39: Asset Portfolio/Investment Income
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Asset Portfolio/Investment Income • Interest rate risk continued to be managed through a portfolio focused on domestic bonds • Investment income for 3Q FY2024 increased by ¥11.8 bn. due to the impact of JPY depreciation and the effect
Slide 40: (Reference) Conversion from Net Assets to Adjusted Net Assets
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Conversion from Net Assets to Adjusted Net Assets Conversion from net assets to adjusted net assets (¥ bn.) Provision of Adjustment of Deferral of Surplus relief capital reserve*1 Underwriting acquisition cost reinsurance
Slide 41: (Reference) Conversion from Adjusted Profit to Net Income
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Conversion from Adjusted Profit to Net Income Conversion from adjusted profit to net income (¥ bn.) Capital Adjustment of Deferment of Gains/losses on Surplus relief reserve*1 underwriting acquisition cost sales of securit
Slide 42: (Reference) Financials
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Financials 3Q results Full-year forecast (¥ bn.) 3Q 3Q FY2023 FY2024 Variance Variance FY2023 FY2024 (Actual) (Forecast) Annualized new premium 24.5 23.3 -1.1 （-4.8％） 32.9 39.7 +6.7 Premium and other income*1 319.2 321.2 +
Slide 43: Results by Business
Results by Business Domestic P&C Insurance Business (Sompo Japan)) 11 Overseas Insurance/Reinsurance Business 26 Domestic Life Insurance Business 35 Nursing Care Business 43 ERM 46
Slide 44: Breakdown of Adjusted Profit (Nursing Care)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Breakdown of Adjusted Profit (Nursing Care) • Adjusted profit for 3Q 2024 was ¥5.4 bn., and is on track to meet the full-year forecast • Offset increased costs due to improved treatment, inflation, and upfront investment with increase
Slide 45: Sales/Operation Margin/Occupancy Rate
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Sales/Operation Margin/Occupancy Rate • Sales for 3Q FY2024 increased by ¥4.6 bn. YoY to ¥135.3 bn. mainly due to the impact of new buildings and M&A, increase in the number of users and unit price • Occupancy rate for 3Q FY2024 is 95
Slide 46: Results by Business
Results by Business Domestic P&C Insurance Business (Sompo Japan) 11 Overseas Insurance/Reinsurance Business 26 Domestic Life Insurance Business 35 Nursing Care Business 43 ERM 46
Slide 47: Financial Soundness – ESR (99.5%VaR)
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life Financial Soundness – ESR（99.5%VaR） • Despite factors such as the accumulation of profits, the reduction of stock risk, and interest rate fluctuations, the ESR is at the expected level • Maintain our policy of seeking opportunities fo
Slide 48: (Reference) Breakdown of Adjusted Capital and Risk
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Breakdown of Adjusted Capital and Risk Adjusted capital*1 Risk amount*5 Non-insurance business 4% Tax impact 7% Tax impact -13% -13% (¥ tn.) 4.7 Investment 24% 4.4 (Other) 24% Risk Risk 0.4 diversification diversification
Slide 49: (Reference) Asset Portfolio – Group Consolidated
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Asset Portfolio – Group Consolidated Amount of investment assets Group fixed income assets by rating (as of the end of Dec. 2024, group consolidated basis) (as of the end of Dec. 2024, group consolidated basis) Investment
Slide 50: (Reference) Management Indicators, etc.
Domestic Domestic Consolidated Overseas Nursing care ERM P&C Life (Reference) Management Indicators, etc. Detailed disclosure of the impact of IFRS, etc., is scheduled for Mar. 2025, in preparation for the transition to IFRS in FY2025. Management indicators, etc. Definition of adjusted profit*1 Dome
Slide 51: 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