Sompo ups profits on major asset disposal, secures growth from foreign markets
Japan-based specialty re/insurer Sompo Holdings increased its net profits some 3.3 times from the prior year period to ¥130 billion ($1.14 billion), chiefly on asset disposals, and with growth visible in its foreign P&C business.
Non-life net premiums written grew 8.5 percent year on year to ¥1.70 trillion, including 1.1 percent at the Japanese parent and 26.9 percent from foreign units.
Foreign operations secured their H1 premium gain on an acquisition and better than forecast rate improvement, management noted in an accompanying earnings presentation. The loss ratio came down 4.8 pps to 66.0 percent to lead the 6.6 pps decline in the combined ratio to 92.8 percent.
Domestic P&C increased its underwriting income to ¥46.2 billion with the adjusted combined ratio coming down by 0.8 percentage points to 90.7 percent on 1.1 percent growth in net premiums written. Marine and fire lines led growth.
Life insurance premiums written fell 6.5 percent year on year to ¥158 billion.
Following the rise in P&C business, Sompo increased its forecast for full-year net premiums written by nearly 3 percent to ¥3.18 trillion.
But conditions appear increasingly dire for the life segment, where management deepened its forecast for decline, cutting its FY forecast by 7.5 percent to ¥331 billion.
For the bottom line, Sampo increased its forecast for full-year attributable net profits by 42 percent to ¥178 billion, what would represent a 25 percent gain on the prior fiscal year tally. The revision chiefly follows heightened expectations for gains on the sale of securities, management said.
