Domestic P&C business boosts Sompo’s profits
Japan-based Sompo Holdings grew its consolidated net income by ¥14.8 billion to ¥43.4 billion ($390 million) between April and September driven by earnings growth in its domestic property/casualty (P&C) insurance business.
The adjusted profit of the domestic P&C business grew 18.9 percent over the period to ¥57.1 billion. Earnings in the segment grew because of a sharp increase in underwriting profit driven by an improvement of the E/I (earned-incurred) loss ratio, despite market conditions such as a strong yen, according to the company.
Its combined ratio (excluding CALI, (Compulsory Automobile Liability Insurance household earthquake) was 91.6 percent between April and September, lower than the expected 94.1 percent for the full (fiscal) year 2016. It said this was due to the improved profitability of automobile insurance and appropriate control of expenses amongst others, according to the company.
The underwriting profit at property insurer Sompo Japan Nipponkoa increased to ¥45.6 billion after a loss of ¥19.6 billion in the same period of 2015 due to improvements on fire and allied lines.
In the life business, policies in force kept expanding, and the bottom line has steadily progressed against full year business forecast of ¥6.5 billion, Sompo said.
Net income in the domestic life insurance business dropped 28.6 percent year-on-year in the first half of the 2016 fiscal year to ¥4.5 billion.
Overall, Sompo’s consolidated ordinary income shrank 1.2 percent to ¥1,654.8 billion in the first half of its 2016 fiscal year.
Sompo maintained the initial business forecast for the full year (April 2016 to March 2017) consolidated ordinary profit of ¥206.0 billion and consolidated net income of ¥140.0 billion.
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Intelligent Insurer
Newton Media Ltd
Kingfisher House
21-23 Elmfield Road
BR1 1LT
United Kingdom