Anshin Guarantor Service Co.,Ltd.

Business Details

Anshin Hosho Co., Ltd. is a rent guarantee company that provides institutional guarantees for rent liabilities under lease agreements. As a corporate guarantee alternative to the joint guarantor system, the company pioneered in the industry an "advance payment type" guarantee product that pre-pays rent and other amounts to real estate management companies (including lessors) on behalf of tenants. Its core products are "Life Anshin Plus," a product offered in partnership with Life Card Co., Ltd., and "Anshin Plus," a proprietary advance-payment product, with a fee-based business model ensuring stable revenue. The company acquired a business model patent (Patent No. 4150659) in 2008.

Recent Overview

FY2026 (ending March 2026) achieved higher revenue and a significant profit increase; delisting planned following a tender offer

In FY2026 (ending March 2026), the company achieved a substantial recovery in performance, with operating revenue of ¥6,162 million (up 14.6% year on year), operating income of ¥258 million (up 344.9% year on year), and net income of ¥291 million (up 225.9% year on year). Growth in the guarantee liability balance and new guarantee contracts drove revenue, while increases in commission fees paid and provision for allowance for doubtful accounts pushed up expenses. The company has expressed its approval of and recommendation to tender in response to a tender offer (TOB) by Mutual Nova Holdings Co., Ltd., and the company's shares are expected to be delisted after completion of the related procedures. The earnings forecast for FY2027 (ending March 2027) has not been disclosed, and no dividend is planned for FY2026 (ending March 2026) (compared to ¥3.00 per share in the prior period). The number of rental housing construction starts in fiscal 2025 (Reiwa 7) declined 13.5% year on year, indicating an increasingly challenging market environment.

Key Products

Growth Drivers

• Stable growth in operating revenue driven by the continued expansion of the guarantee liability balance and number of guarantee contracts (in FY2026 (ending March 2026), collection agency advance payments reached ¥9,932 million, up 18.8% year on year)
• Expansion of the sales base through new merchant acquisition and strengthened support systems for existing member merchants
• Expanded sales of credit card-affiliated products (Life Anshin Plus, Anshin Q-Rent) and enhancement of guarantor-payment affiliated services
• Addressing real estate management companies' needs for more efficient rent management operations through advance-payment type guarantee products
• Rising demand for institutional guarantees against the backdrop of the revised Civil Code (effective April 2020), which prompted a review of the individual guarantor system
• Strengthened collection efforts on written-off receivables (in FY2026 (ending March 2026), gain on collection of written-off receivables was ¥69 million, up 68.3% year on year)
• Expansion of non-operating income due to an increase in default interest received (in FY2026 (ending March 2026), ¥129 million, up 31.1% year on year)
• Increased efficiency in collection operations through review of fixed costs and smooth transition to legal collection procedures

Risks

• Rising operating expenses due to increased collection agency commission fees (commission expenses) (up 12.3% year on year in FY2026 (ending March 2026))
• Risk of profit pressure from an increase in provision for allowance for doubtful accounts (up 6.0% year on year in FY2026 (ending March 2026))
• Risk of increased working capital needs and reliance on short-term borrowings (short-term borrowings of ¥750 million) due to an increase in collection agency advance payments (up ¥1,575 million in FY2026 (ending March 2026))
• Risk of market contraction due to a decline in new housing starts and rental housing construction starts in fiscal 2025 (Reiwa 7) (down 12.9% and 13.5% year on year, respectively)
• Expanding collection costs and uncollected risk due to an increase in indemnity receivables (up ¥478 million in FY2026 (ending March 2026))
• Risk of economic downturn and deterioration in tenants' rent-paying ability due to a worsening external environment, including changes in U.S. trade policy and Middle East tensions
• Limited information disclosure to investors, as the earnings forecast for the next fiscal period has not been disclosed due to the planned delisting following the tender offer by Mutual Nova Holdings Co., Ltd.
• Impact on financial soundness from a declining equity ratio (18.3% to 17.5%) and continued negative operating and investing cash flows