Sompo Holdings net income tumbles
Sompo Holdings net income tumbles | Insurance Business Australia
Insurance News
Sompo Holdings net income tumbles
Expenses broken down
Insurance News
By
Terry Gangcuangco
For the fiscal year ended March 31, 2023, Sompo Holdings saw a nearly 60% decline in the company’s net income attributable to shareholders of the parent.
Metric
Year ended March 31, 2023
Year ended March 31, 2022
Ordinary income
¥4.6 trillion
¥4.2 trillion
Ordinary profit
¥122.5 billion
¥315.5 billion
Net income attributable to shareholders of the parent
¥91.2 billion
¥224.8 billion
Sompo’s underwriting income for the year was ¥4.1 trillion, while investment income amounted to ¥325.7 billion.
As for the lower net income, Sompo had this to say: “Ordinary expenses increased by ¥632.6 billion to ¥4.5 trillion compared to the previous fiscal year, the components of which were underwriting expenses of ¥3.6 trillion, investment expenses of ¥113.7 billion, operating, general, and administrative expenses of ¥598.4 billion and other ordinary expenses of ¥174.3 billion.
“As a result of the foregoing, Sompo Holdings, Inc. reported ordinary profit, calculated as ordinary income minus ordinary expenses, of ¥122.5 billion, a decrease of ¥192.9 billion from the previous fiscal year. The company posted net income attributable to shareholders of the parent, after extraordinary items, net of income taxes and deferred income taxes and others, of ¥91.1 billion, a decrease of ¥133.6 billion from the previous fiscal year.
Meanwhile, net income attributable to shareholders of the parent from the group’s domestic property & casualty insurance business went down; overseas insurance business, up; domestic life insurance, down; and nursing care & seniors business, down.
Talking about its forecast, Sompo said: “For the fiscal year ending March 31, 2024, the company is forecasting consolidated ordinary profit of ¥322 billion and net income attributable to shareholders of the parent of ¥230 billion yen, based on the following assumptions:
“Assumptions for net premiums written are based on the company’s own projections based on extrapolation from past trends and other factors. The company is forecasting ¥98 billion yen for net incurred losses (excluding household earthquake insurance) of Sompo Japan Insurance Inc. due to domestic natural disasters that occur in the fiscal year ending March 31, 2024, taking into account past trends and other factors.
“The company assumes no major change in market interest rates, exchange rates, and stock prices from their levels at March 31, 2023.”
What do you think about Sompo’s financial results? Share your thoughts in the comments below.
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