Mortgage Service Japan Limited

Business Details

This segment is operated by House G-men Co., Ltd. and the Housing Technology Council (a general incorporated association). Its core offering is "New Home Defect Insurance," which can only be sold by five nationally designated corporations designated by the Minister of Land, Infrastructure, Transport and Tourism, alongside Housing Performance Evaluation, Ground Warranty, extended warranty insurance, and other services provided to small and medium-sized housing companies. It has the largest number of client housing companies within the group and serves as the starting point for expanding the group's network. Main revenue consists of insurance/warranty premium income and inspection fee income, with risk minimized through reinsurance and other means.

Recent Overview

Operating profit recovered significantly, up 26.0% year-on-year, driven by the disappearance of prior-year one-time costs and growth in energy-efficiency-related services

In FY2026 (ending March 2026), operating revenue was ¥3,375 million (+2.0% year-on-year) and operating profit was ¥361 million (+26.0% year-on-year). The main driver of profit recovery was the absence in the current period of head office relocation-related costs (a one-time expense) that had been recorded in the previous fiscal year. While some services, such as "New Home Defect Insurance" and "Ground Warranty," were affected by the decline in nationwide new owner-occupied (custom-built) housing starts, related services such as "Housing Performance Evaluation" grew, supported by government policies promoting the spread of energy-efficient housing. The number of issuances of insurance policies, warranty certificates, evaluation reports, conformity certificates, etc. (excluding items related to time-limited economic policy measures) increased by 2.5% year-on-year.

Key Products

Growth Drivers

• Expanding demand for related services such as "Housing Performance Evaluation" driven by policies promoting the spread of energy-efficient housing
• Deepening of cross-selling through joint proposals combining "Suketto Cloud" and "Ground Warranty"
• Competitive advantage from high entry barriers, with only five corporations designated by the Minister of Land, Infrastructure, Transport and Tourism permitted to enter the market
• Normalization and recovery of profit levels due to the disappearance of head office relocation-related costs (a one-time expense) recorded in the prior year
• Deepening of one-stop solutions for housing companies (linkage with building confirmation applications, etc.)

Risks

• Downward pressure on demand for "New Home Defect Insurance" and similar products due to the continued decline in nationwide new owner-occupied (custom-built) housing starts
• Impact on housing starts from delays in building confirmations and the rebound from rush demand associated with the revised Building Standards Act enforced in April 2025
• Increasing difficulty for consumers to acquire housing due to soaring housing prices and rising mortgage interest rates
• Risk of a shrinking customer base due to the deteriorating business environment and declining creditworthiness of small and medium-sized housing companies
• Structural contraction in new housing starts due to the medium- to long-term decline in population and number of households