Sompo benefits from lower nat cats overseas in 6M results

Japanese insurer Sompo benefitted from lower losses from natural catastrophes in North America in the six months ended Sept. 30, 2018 compared to the same period a year ago.

The adjusted profit of Sompo’s overseas insurance operations increased by ¥62.4 billion ($0.55 billion) to ¥27.1 billion ($0.24 billion) in the first half of Sompo’s 2018 financial year.

The combined ratio of the overseas business was 91.7 percent in the six months ended September 2018.

The adjusted profit in North America and Europe was ¥20.1 billion compared to a loss of ¥23.0 billion in the same period a year ago. Net premiums written in North America and Europe grew to ¥242.3 billion from ¥205.9 billion over the period.

Overall the group reported an increase in consolidated net income for the first six months of its 2018 financial year of ¥20.2 billion to ¥22.1 billion.

At the same time, Sompo has reduced its business forecasts for the full 2018 financial year to “conservatively reflect the current environment,” including large domestic natural disasters.

Sompo has lowered its forecast for the consolidated net income by ¥40.0 billion to ¥170.0 billion in the 2018 financial year. The change is driven mainly by incurred losses from large domestic natural disasters as well as a minor adjustment of Sompo International’s (SI’s) strong top-line growth, according to the company.

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