Sompo rides surging foreign units to 8.4% P&C premium growth through 9M

Sompo Holdings continues to take its growth from its overseas P&C businesses, with nearly 30% premium growth in the division over the first 9M of the group’s fiscal year providing the vast bulk of premium growth for the larger group.

Overseas insurance, chiefly the US and Europe, enjoyed net written premium growth of 28% or ¥1.36 billion for the 9M ended December 31, a Q4 earnings release indicated Monday (February 14).

Management claimed gains were "driven mainly by rate improvement" plus consolidation gains on its new US agro division, which also benefited from growth in crop insurance and an increase in crop commodity prices.

The combined ratio in the overseas insurance segment is down a heady 4.6 pps, including 2.8 pts for the loss ratio and 1.7 pts for the expense ratio. Management put the improvement to top-line gains and the comparative lack of negative impact from Covid-19.

That premium growth in the overseas division drove the group's overall 8.4% increase in 9M net written premiums for the P&C business, just shy of the 8.8% growth rate it now forecasts for the full fiscal year ending March 31.

Japan P&C squeaked out a 0.7% year on year increase in net written premiums, below the 1.5% target growth for the full fiscal year.

Life insurance premiums continue to trail prior year levels and the group now expects to end the fiscal year with a decline just in excess of 4% year on year.

With claims growing at a very modest 2% rate across the group, and with Q2 asset sales from the home office still pumping results, 9M consolidated net profit is more than double the prior year level at ¥183.7 million.

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