MS&AD Insurance Group Holdings, Inc.
8725・Prime Market・Insurance
Domestic Non-Life Insurance Business (Mitsui Sumitomo Insurance)
Segment representing one of the largest domestic non-life insurance companies, forming the core of the MS&AD Group
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue from external customers (insurance revenue) | ¥1,888,116 million | ¥1,800,017 million | ↑ |
| Total segment revenue (including internal transactions) | ¥1,934,749 million | ¥1,847,886 million | ↑ |
| Segment profit (profit attributable to owners of the parent) | ¥182,987 million | ¥108,601 million | ↑ |
| Income tax expense | ¥50,927 million | ¥28,908 million | ↑ |
| Interest revenue | ¥30,361 million | ¥29,000 million | ↑ |
| Depreciation and amortization | ¥37,031 million | ¥40,842 million | ↓ |
Business Details
The domestic non-life insurance business segment operated by Mitsui Sumitomo Insurance Co., Ltd. The company provides Fire Insurance, Marine Insurance, Accident Insurance, Automobile Insurance, Compulsory Automobile Liability Insurance, and other non-life insurance products to corporate and individual customers. In FY2026 (ending March 2026), under the initial application of IFRS, the company recorded insurance revenue of ¥1,934,749 million (including internal transactions). Segment profit (profit attributable to owners of the parent) reached ¥182,987 million, a substantial increase of 68.5% year on year.
Recent Overview
Both insurance revenue and segment profit increased substantially under initial IFRS application; merger agreement concluded with Aioi Nissay Dowa Insurance
In FY2026 (ending March 2026), IFRS accounting standards were applied for the first time. Insurance revenue from external customers was ¥1,888,116 million (up 4.9% year on year), and segment profit (profit attributable to owners of the parent) was ¥182,987 million, a substantial increase of 68.5% from ¥108,601 million in the prior period. In addition, Mitsui Sumitomo Insurance Co., Ltd. concluded a merger agreement with Aioi Nissay Dowa Insurance Co., Ltd., with an effective date of April 1, 2027. The company also agreed to establish an insurance agency business company jointly funded with the SMBC Group, effective April 1, 2026. As a subsequent event, a comprehensive resolution was passed for the issuance of domestic unsecured straight bonds up to ¥200 billion.
Key Products
Growth Drivers
- Continued revenue growth through premium rate optimization for Fire Insurance and Automobile Insurance (external customer revenue up 4.9% year on year)
- Scale expansion, cost efficiency, and governance strengthening through the merger with Aioi Nissay Dowa Insurance (planned for April 2027)
- Collaboration on underwriting technology and revenue diversification through investment in W.R. Berkley Corporation
- Strengthening of sales channels through establishment of an insurance agency business company jointly funded with the SMBC Group
- Enhanced underwriting through digital and data utilization, and expansion of revenue from new insurance types
- Improved capital efficiency and utilization of gains on sale of securities through accelerated reduction of strategic shareholdings
Risks
- Risk of deterioration in underwriting profit/loss due to the intensification and increased frequency of natural disasters (estimated domestic natural disaster claims: ¥83.0 billion for Mitsui Sumitomo Insurance, assumption for next fiscal year forecast)
- Continued costs for trust recovery and business restrictions in response to regulatory authorities (Japan Fair Trade Commission, Financial Services Agency) regarding premium adjustment practices in the corporate insurance field
- Integration costs and integration risks associated with the merger with Aioi Nissay Dowa Insurance (occurrence of merger-related expenses)
- Future risk of the disappearance of gains on sale associated with the reduction of strategic shareholdings (target of zero by the end of March 2030)
- Risk of loss ratio deterioration due to rising automobile repair costs, among other factors
- Fluctuations in the measurement of insurance contract liabilities due to initial application of IFRS accounting standards (changes in discount rates and risk adjustments affect profit/loss)
Last updated: June 30, 2026