SBI Insurance Group Co., Ltd.

Business Details

Consists of a single company, SBI Insurance Co., Ltd. The company offers Automobile Insurance, Cancer Insurance, Fire Insurance, Overseas Travel Insurance and other products at low premiums through non-face-to-face channels centered on the internet. It is also expanding its sales network through alliances with regional financial institutions and corporate partners. The number of policies in force (including the number of insured persons under group Cancer Insurance) as of the end of March 2026 was 1,397 thousand policies (up 5.5% from the end of the prior fiscal year). Segment assets stood at ¥72,156 million.

Recent Overview

All KPIs reached record highs; the combined ratio improved by 1.5 points to 89.7%

In FY2026 (ending March 2026), ordinary revenue was ¥46,819 million (up 15.8% year on year), and segment profit was ¥2,015 million (up 29.8% year on year), both marking record highs. Direct premiums written were ¥64,556 million (up 11.8% year on year). The net loss ratio remained flat at 73.3%, while the net expense ratio declined 1.5 points from 17.9% to 16.4%, improving the combined ratio to 89.7%. The number of policies in force expanded steadily to 1,397 thousand (up 5.5% year on year). Note that in the prior fiscal year, tax expenses were kept low due to a one-time recognition of deferred tax assets; as this effect disappeared in the current fiscal year, tax expenses increased.

Key Products

Growth Drivers

• Steady increase in the number of policies in force (1,397 thousand at the end of March 2026, up 5.5% from the end of the prior fiscal year), driving increased premium revenue
• Expansion of applications through non-face-to-face channels leveraging new TV commercials and high ratings on insurance comparison sites
• Expansion of Cancer Insurance and Overseas Travel Insurance sales and diversification of sales channels through partnerships with multiple regional financial institutions
• Improved operational efficiency through the upgrading of accident reporting and customer support systems using generative AI and voice recognition technology
• Enhanced customer convenience through cutting-edge technology such as hail alert notifications using a hail damage prediction model
• Continued decline in the net expense ratio (16.4%) driven by the low-cost operations of direct-type P&C insurance

Risks

• Risk that the net loss ratio, remaining flat at a high level of 73.3%, could pressure profitability through increased claims payments
• Risk of increased losses in Fire Insurance and other products due to frequent natural disasters
• Medium- to long-term risk of a shrinking automobile insurance market due to the declining birthrate, aging population, and the expansion of the sharing economy
• Risk of intensifying competition with the three major P&C insurance groups (which hold a combined market share of over 80%)
• Risk that the normalization of the effective tax rate, following the lapse of the prior fiscal year's one-time deferred tax asset recognition effect, could affect profit levels as tax expenses increase