Nippon Insure Co., Ltd.
5843・Standard Market・Other Financing Business
Guarantee Business
Core business centered on the Rent Guarantee Service, accounting for approximately 94% of total company sales through institutional guarantee services
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (interim period cumulative) | ¥1,950 million | ¥1,675 million | ↑ |
| Segment profit (interim period cumulative) | ¥720 million | ¥518 million | ↑ |
| Segment sales year-on-year change | +16.4% | — | ↑ |
| Segment profit year-on-year change | +39.1% | — | ↑ |
| Share of total company sales (interim period) | approx. 94.4% | approx. 93.8% | ↑ |
| Indemnity receivables balance | ¥1,740 million | ¥1,594 million | ↑ |
| Allowance for doubtful accounts balance | ¥674 million | ¥631 million | ↑ |
Business Details
The company primarily provides the Rent Guarantee Service (Smart Support, etc.) for rental housing, and also offers the Nursing Care Fee Guarantee Service (Care Support) and the Hospitalization Fee Guarantee Service. It screens prospective tenants through real estate management companies, generating revenue from initial guarantee fees and annual renewal guarantee fees. The company utilizes its proprietary contract management cloud system, Cloud Insure, to support management companies' operational efficiency and improve customer convenience. It is also advancing automation of collection operations through SMS, web billing, and AI operators.
Recent Overview
Sales and profit both increased significantly due to new customer acquisition and the Cloud Insure renewal
In the interim period of FY2026 (ending September 2026) (October 2025 to March 2026), Guarantee Business sales reached ¥1,950 million (up 16.4% year-on-year), with segment profit of ¥720 million (up 39.1% year-on-year), achieving substantial growth in both revenue and profit. This was driven by aggressive development of new business partners to acquire quality customers and expand market share, improved customer convenience from the Cloud Insure renewal, and improved collection efficiency through the use of SMS, auto-calling, and AI operators. On the other hand, the indemnity receivables balance increased to ¥1,740 million (up ¥146 million from the previous fiscal year-end), and the allowance for doubtful accounts was also increased to ¥674 million (up ¥42 million).
Key Products
Growth Drivers
- Acquisition of new quality customers and market share expansion through aggressive development of new business partners
- Adding new value to products through tie-ups and proposing new product designs to existing clients
- Improved collection efficiency through automation of collection operations via SMS, web billing, auto-calling, and AI operators
- Improved customer convenience and management company operational efficiency through the Cloud Insure renewal
- Structural expansion of demand for rent guarantee services against the backdrop of the declining birthrate, aging population, and increase in single-person households (institutional guarantee enrollment mandatory rate of 93.00%)
- Revenue diversification through market development of nursing care fee and hospitalization fee guarantee services
Risks
- Risk of profit pressure due to increased allowance for doubtful accounts provisioning accompanying the increase in indemnity receivables (¥1,740 million at interim period-end)
- Risk of additional provisioning for allowance for doubtful accounts and guarantee performance reserves due to changes in the status of guarantee clients or economic conditions
- Risk of intensified competition with other competitors amid DX progress in the rental real estate industry
- Risk of declining tenant payment capacity and increased delinquency due to price increases and deteriorating economic conditions
- Risk of increased costs due to rising IT-related expenses (introduction of RPA, OCR, cloud systems, and AI operators)
Last updated: December 23, 2025