ENVALITH
SOMPOホールディングス株式会社 logo

Sompo Holdings, Inc.

8630・Prime Market・Insurance

Official website
SOMPOホールディングス株式会社 logo
Sompo Holdings, Inc.8630

Business

SOMPO Holdings is an insurance holding company operating four segments: the Domestic Property & Casualty Insurance Business centered on Sompo Japan Insurance, the Overseas Insurance Business centered on Sompo International Holdings Ltd. (SIH), the Domestic Life Insurance Business through SOMPO Himawari Life, and the Nursing Care Business through SOMPO Care. The group has 165 subsidiaries and 22 affiliated companies under its umbrella, and operates Commercial and Consumer Insurance businesses across the Americas, Europe, Asia-Pacific, and other regions worldwide. In February 2026, the company acquired Aspen Insurance Holdings Limited for approximately ¥540.0 billion, significantly strengthening its presence in the Lloyd's, UK, and reinsurance markets. "

Business Model

The core is insurance revenue from domestic and overseas property & casualty insurance underwriting (¥5,372,921 million for FY2026 (ending March 2026)), supplemented by investment income (equivalent to ¥582.9 billion in investment gains/losses) generated from insurance premium income. In the Domestic Life Insurance Business, sales of protection-type products and variable insurance through Insurhealth® add to this, while the Nursing Care Business contributes usage fee income from facility-based and in-home care services, forming a composite revenue structure combining insurance and non-insurance businesses. The use of gains from the sale of strategic shareholdings for shareholder returns is also a distinctive feature of the company's capital policy.

Company Strengths

The Domestic Property & Casualty Insurance Business generated insurance revenue of ¥2,730,572 million, while the Overseas Insurance Business generated insurance revenue of ¥2,441,152 million, reflecting a revenue base balanced between domestic and overseas operations. In FY2026 (ending March 2026), segment profit for domestic P&C insurance reached ¥268,112 million (up 359.6% year on year), and segment profit for the Overseas Insurance Business reached ¥294,489 million (up 65.7% year on year), with both segments achieving substantial profit growth simultaneously.

In February 2026, the company made Aspen Insurance Holdings Limited a wholly owned subsidiary for approximately ¥540.0 billion, acquiring reinsurance and specialty insurance franchises in the Lloyd's market, the UK, Bermuda, and the United States. SIH's gross written premium reached an all-time high of US$17.1 billion (up 4.4% year on year), achieving the geographic expansion target of the medium-term management plan one year ahead of schedule.

SOMPO Care offers a full lineup of nursing care services ranging from home care to residential facilities, and achieved an occupancy rate of 94.7% (as of the end of March 2025, per the Annual Securities Report) as of the end of March 2026, the highest level since entering the business. Through its "Future of Nursing Care" model leveraging technology and AI to improve productivity, the segment's ROE reached 14.4%, exceeding the medium-term management plan target of 12% or higher.

ENVALITH's Perspective

Profit attributable to owners of the parent for FY2026 (ending March 2026) reached a record ¥640,086 million (up 163.3% year on year), but the forecast for FY2027 (ending March 2027) points to a substantial profit decline of ¥490,000 million (down 23.4% year on year). The sharp profit expansion in the previous fiscal year was driven by improved investment gains/losses (Other investment gains/losses: ¥491,052 million) and favorable foreign currency translation differences (an external factor), and the unwinding of these effects is seen as the main cause of the decline. This is a phase in which the appropriateness of the stock valuation relative to the forecast EPS of ¥549.17 will be tested.

Following the consolidation of Aspen Insurance Holdings Limited, assets in the Overseas Insurance Business segment increased by approximately 56%, and insurance contract liabilities for the group as a whole expanded from ¥9,343,635 million to ¥10,737,677 million. Overseas Insurance Business segment profit stood at a high level of ¥294,489 million, but reinsurance contract assets surged from ¥1,209,313 million to ¥2,194,887 million, making trends in reinsurance costs and the maintenance of underwriting discipline a touchstone for earnings stability. As an external factor, the impact of market interest rate and foreign exchange rate fluctuations on investment income also warrants continued attention.

Domestic Property & Casualty Insurance Business segment profit expanded sharply to ¥268,112 million, approximately 4.6 times the previous fiscal year's level, reflecting the results of the earnings structure transformation achieved through the SJ-R project. On the other hand, compliance and governance risks stemming from past administrative sanctions have not been completely dispelled, and continued efforts toward restoring trust are required. The assumed domestic natural catastrophe losses for FY2027 (ending March 2027) (¥110,000 million on a standalone basis for Sompo Japan Insurance Inc.) remain a key source of uncertainty for the earnings forecast.

Growth Strategy

Advancing disciplined growth and revenue structure transformation through the two pillars of SOMPO P&C (property and casualty insurance business) and SOMPO Wellbeing

Through the consolidation of Aspen Insurance Holdings Limited, Overseas Insurance Business segment assets expanded to ¥8,164,339 million. A diversified portfolio spanning Commercial, Reinsurance, and Consumer lines was established, achieving segment profit of ¥294,489 million. The company will continue to promote earnings stability through disciplined underwriting and geographic diversification.

Profitability-focused underwriting was strengthened through portfolio and underwriting transformation as well as sales transformation. As the effects of premium rate revisions for Automobile Insurance and Fire Insurance took hold, Domestic Property & Casualty Insurance Business segment profit expanded sharply to ¥268,112 million (approximately 4.6 times the previous period). Efforts to improve the combined ratio will continue.

Under the policy of returning an additional 50% of after-tax gains from the sale of strategic shareholdings, the company conducted share buybacks of ¥229,290 million and cancellations of ¥219,622 million. As a subsequent event, an additional share buyback with an upper limit of ¥69.0 billion was resolved. Net assets per share rose to ¥5,791.94, achieving continued improvement in capital efficiency.

In the Nursing Care Business, segment profit reached ¥7,951 million (up from ¥5,303 million in the previous period), driven by improved occupancy rates and the rollout of the "Future Nursing Care" model. In Domestic Life Insurance Business, the company expanded its portfolio of protection-type products centered on Insurhealth®, resulting in a substantial increase in segment profit to ¥68,605 million (up from ¥29,876 million in the previous period). Collaboration between the two businesses will continue to be strengthened.

On April 22, 2026, the company issued USD 1.3 billion in senior unsecured bonds (fixed rate of 5.411% per annum, maturing in 2037), with proceeds to be applied toward a subordinated loan to Sompo Japan Insurance Inc. This strengthens the group's overall capital base and addresses solvency requirements associated with the expansion of overseas operations.

Last updated: July 19, 2026