Tokio Marine hikes full-year outlook due to rate growth

Tokio Marine Holdings has revised its full-year income forecast with an increase of JPY40bn (£205m) to JPY1.04tr (£5.1bn), due to accelerated sales and strong international underwriting.

For the first half of the fiscal year, the Japan-based insurer reported an adjusted net income of JPY771.2bn (£3.9bn), exceeding its initial full-year profit projection.

Over the first half of the year, the insurer reported net premium growth of 5.7 per cent year-on-year as a result of rate increases in Japan and internationally.

However, its life insurance premiums fell by nearly 33 per cent due to block reinsurance in Japan Life, but the company stated this aligned with initial forecasts.

For its full-year forecast, the insurer expects net premiums written to rise by over five per cent because of stricter underwriting in Japan P&C.

While life insurance premiums are forecasted to drop by nearly 16 per cent year-on-year.

Tokio Marine stated that foreign exchange gains, strong international underwriting and sales of business-related equities contributed to the growth.

Satoru Komiya, Group CEO, said: “Our performance for the first half of the fiscal year was driven by our global diversification, bottom-line-focused strong underwriting and robust investment income. It showcases our balanced portfolio and ability to consistently deliver sustainable growth.

“Increasing shareholder returns, including increased DPS and share repurchases, underscore our commitment to sustainable growth and delivering strong financial performance and value to shareholders. Furthermore, through this EPS growth and disciplined capital policy, we will further enhance our ROE.”