MS&AD Earnings: Japanese Insurer Reports Strong Profit; Will Unwind Part of Toyota Cross Holding

MS&AD Insurance Group reported an economic profit of JPY 197 billion for the June quarter, achieving 31% of its guidance of JPY 630 billion for the fiscal year ending March 2025 in the first three months. The core domestic nonlife business contributed JPY 103 billion, 24% of its full-year guidance of JPY 428 billion, as higher-than-expected investment returns, including sales of long-held equities, offset an increase in automobile insurance claims and losses from hail damage in April. The domestic life insurance business contributed JPY 26 billion, 55% of its full-year guidance of JPY 48 billion, as a large number of contracts previously sold by MS Primary Life reached their target prices, leading to a decrease in related policy reserve provisions. Overseas insurance contributed JPY 68 billion, 45% of its full-year guidance of JPY 153 billion. While improvement continued at Lloyd’s syndicate Amlin, whose profitability had been disappointing since shortly after MS&AD bought it in 2016 until 2022, the main drivers of the stronger-than-guided results overseas appear to be in MS&AD’s Asian businesses (where both Mingtai in Taiwan and First Capital in Singapore had quite strong results, supported by good investment returns) as well as a turnaround in Aioi Nissay Dowa’s European business after some issues last year.