Sompo Holdings, Inc.
8630・Prime Market・Insurance
Domestic Property & Casualty Insurance Business
Core segment of the SOMPO Group. Responsible for domestic non-life insurance underwriting and asset management.
| Period | Current | Previous | Change |
|---|---|---|---|
| Insurance revenue (including inter-segment transactions) | ¥2,730,572 million | ¥2,634,478 million | ↑ |
| Net income attributable to owners of the parent (segment profit) | ¥268,112 million | ¥58,338 million | ↑ |
| Segment assets | ¥6,444,135 million | ¥6,311,943 million | ↑ |
| Income tax expense | ¥94,895 million | ¥15,049 million | ↑ |
| Depreciation and amortization | ¥56,795 million | ¥53,125 million | ↑ |
| Capital expenditures | ¥34,155 million | ¥40,138 million | ↓ |
Business Details
With Sompo Japan Insurance Inc. as the main operating company, this segment conducts non-life insurance underwriting, asset management, and related operations in Japan. It offers a wide range of insurance lines, including Fire Insurance, Marine Insurance, Accident Insurance, Automobile Insurance, and Compulsory Automobile Liability Insurance, providing services that contribute to "safety, security, and health" for individual and corporate customers. As the core segment accounting for approximately half of the Group's total insurance revenue, it is driving the transformation of its business and profit foundations through the SJ-R Project.
Recent Overview
Net income attributable to owners of the parent surged approximately 4.6x year on year to ¥268,112 million.
In the Domestic Property & Casualty Insurance Business for FY2026 (ending March 2026), insurance revenue (including inter-segment transactions) increased by ¥96,094 million year on year to ¥2,730,572 million. Net income attributable to owners of the parent expanded approximately 4.6-fold, from ¥58,338 million in the prior year to ¥268,112 million. While the prior year had seen a significant profit decline due to deteriorating domestic equity market conditions and the impact of natural disasters, the current year benefited from the penetration of premium rate revision effects, a recovery in investment gains and losses, and the absence of one-time loss factors that had occurred in the prior year. Segment assets increased by ¥132,192 million year on year to ¥6,444,135 million.
Key Products
Growth Drivers
- Sustained growth in insurance revenue driven by the penetration of premium rate revision effects for Fire Insurance and Automobile Insurance (Automobile Insurance: ¥1,412,948 million; Fire Insurance: ¥1,093,695 million)
- Emerging effects of profit foundation transformation through the SJ-R Project (portfolio and underwriting transformation, sales transformation)
- Improvement in investment gains and losses and enhanced capital efficiency through accelerated sales of strategic shareholdings
- Strengthened underwriting focused on profitability to improve Sompo Japan's combined ratio
- Revenue diversification through expanded sales of new insurance products and corporate insurance
Risks
- Rising claims payment unit costs and repair costs for Automobile Insurance due to continued inflation
- Risk of increased insurance claims payments due to the intensification and increased frequency of natural disasters (Sompo Japan's projected net incurred losses from domestic natural disasters for FY2027 (ending March 2027) are estimated at ¥110,000 million)
- Trust recovery costs and compliance risks associated with multiple business improvement orders issued to Sompo Japan (premium rate coordination practices, fraudulent automobile insurance claims, and inappropriate management of insurance contract information)
- Impact on investment gains and losses from fluctuations in domestic equity markets, interest rates, and foreign exchange rates
- Medium- to long-term risk of contraction in the domestic insurance market due to the declining birthrate and aging population
Last updated: June 17, 2026