ENVALITH
ニッポンインシュア株式会社 logo

Nippon Insure Co., Ltd.

5843・Standard Market・Other Financing Business

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ニッポンインシュア株式会社 logo
Nippon Insure Co., Ltd.5843

Business

Nippon Insure Co., Ltd. is a Fukuoka-based guarantee specialist that began offering rent guarantee services in 2008 and listed on the Tokyo Stock Exchange Standard Market in October 2023. Its core Guarantee Business (approximately 94% of consolidated sales) centers on rent guarantee services for rental housing, with the company expanding into nursing care fee guarantees and hospitalization fee guarantees. Its main customers are real estate management companies, and it operates nationwide with a head office in Fukuoka and branches in Tokyo, Osaka, Kanagawa, Niigata, Sendai, and Nagoya. As Others, the company operates 3 coin laundry stores and 6 fitness club stores within Fukuoka Prefecture through franchise arrangements.

Business Model

The company receives an initial guarantee fee (0.5 months' worth of monthly rent, minimum ¥20,000) and an annual renewal guarantee fee (¥10,000) from prospective tenants, using real estate management companies as the sales channel. The accumulation of contracts builds up a stock-type structure of renewal fee income; in FY2025 (ending September 2025), the number of new initial guarantee contracts was 33,749, with an average initial guarantee contract unit price of ¥51,846. When a delinquency occurs, the company makes a subrogated payment and collects it as a claim receivable (collection rate of 98.8%). The proprietary cloud system "Cloud Insure" supports management companies' operational efficiency, aiming to lock in client relationships.

Company Strengths

In FY2025 (ended September 2025), the indemnification claim recovery rate was 98.8% and the indemnification claim occurrence rate was 6.3%. The company is promoting automation of collection operations through SMS, web billing, auto-calling, and AI operators, keeping bad debt risk at a certain level even during phases of sales expansion.

In FY2025 (ended September 2025), sales increased 16.0% year on year to ¥3,738 million, while cost of sales increased only 4.6% year on year to ¥1,396 million, resulting in gross profit growth of 24.1% year on year to ¥2,342 million. Operating income increased 81.5% year on year to ¥759 million, demonstrating notable profit growth during the phase of revenue expansion.

The company provides its proprietary contract management cloud system, Cloud Insure, which centralizes contract creation, document uploads, customer information management, subrogation claims, and payment statement issuance for real estate management companies. By supporting the operational efficiency of management companies, it raises barriers to switching providers, contributing to the retention of existing customers.

ENVALITH's Perspective

Interim ordinary profit of ¥602 million for the six months ended March 2026 (interim period of FY2026, ending September 2026) represents 68.0% of the full-year forecast of ¥887 million, while interim net profit of ¥417 million represents 67.6% of the full-year forecast of ¥617 million. This progress rate reflects a first-half weighting, and while the full-year forecast (net sales of ¥4,233 million, operating profit of ¥883 million) has been left unchanged, we would like to keep a close watch on factors that could affect performance toward the second half, such as the decrease in deferred revenue (down ¥56 million from the end of the previous fiscal year) and trends in the reversal of provisions for guarantee performance.

The balance of indemnity receivables increased by ¥146 million, from ¥1,594 million at the end of the previous fiscal year to ¥1,740 million, and the allowance for doubtful accounts was also increased by ¥42 million, from ¥631 million to ¥674 million. This indicates that subrogated payments continue to occur, and as an external factor, rent arrears risk is influenced by economic conditions and the employment environment. The allowance ratio (allowance for doubtful accounts ÷ indemnity receivables) stood at 38.7%, a slight decline from the previous fiscal year-end (39.6%), and the adequacy of the allowance level needs to be continuously monitored.

Against operating profit of ¥759 million in FY2025 (ended September 2025), the full-year forecast for FY2026 (ending September 2026) projects an increase to ¥883 million (up 16.4%). However, ¥591 million has already been recorded in the interim period alone, meaning that recording just ¥292 million in the second half would achieve the full-year target—a level below the previous year's second-half result (¥759 million － ¥387 million = ¥372 million). While there is room for upside depending on seasonal fluctuations in deferred revenue and trends in provisions for guarantee performance, the fact that the earnings forecast has not been revised suggests a cautious stance on the part of management.

Growth Strategy

Promoting expansion of rent guarantee service market share and profitability improvement through IT adoption and collection automation

Through the renewal of the proprietary contract management cloud system Cloud Insure, the company supports management companies in improving operational efficiency, while working to develop new business partners and deepen relationships with existing customers. In the first half of FY2026 (ending March 2026), Guarantee Business sales grew a solid +16.4% year on year, reflecting the effect of these initiatives in the numbers.

By automating collection operations using SMS, web billing, auto-calling, and AI operators, the company simultaneously improves collection efficiency and curbs personnel expenses. The effect has been confirmed by the fact that the growth rate of cost of sales (+4.1% in the first half) significantly undershot the growth rate of sales (+15.6%), directly contributing to an improvement in operating margin.

The company continues to promote proposals for new product designs through tie-ups with existing clients, alongside the acquisition of new high-quality customers. In the first half of FY2026 (ending March 2026), segment profit for the Guarantee Business reached ¥720 million (up +39.1% year on year), a substantial increase in profit, demonstrating the success of the new customer acquisition strategy.

Leveraging the guarantee expertise cultivated through the rent guarantee business, the company is promoting market development for the Nursing Care Fee Guarantee Service and the Hospitalization Fee Guarantee Service. While demand is expected to expand due to the progression of an aging population, the current contribution to earnings remains limited, and this is positioned as a medium- to long-term growth driver.

Last updated: July 17, 2026