Morningstar

MS&AD Insurance Group Holdings Inc 8725

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Stock XTKS Rating as of
¥‎3,379.00 +110.00 (3.36%)
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As of Delayed Price Closed

Company Report

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MS&AD Insurance Will Decide Soon on Possible Merger of Domestic Nonlife Units

Michael Makdad

MS&AD Insurance Group Holdings held an IR Day for investors and analysts. This event was notable as it marked Funabiki Shinichiro’s debut as group CEO, succeeding Hara Noriyuki in June. Funabiki and MS&AD are well positioned to discuss significant structural changes in Japan’s nonlife insurance industry that we believe will impact industry sales practices, competitive dynamics, and economic moats for the major players. Unlike rival Sompo Holdings, whose chairman and CEO resigned in March amid an industry scandal, and Tokio Marine Holdings, which may be seen as representing the industry as a whole due to its size and leadership role, Funabiki and MS&AD can offer a more candid perspective.

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Price vs Fair Value

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8725 is trading at a 583% premium.
Price
¥‎3,269.00
Fair Value
¥‎2,462.00
Uncertainty
Medium
1-Star Price
¥‎6,912.00
5-Star Price
¥‎9,252.00
Economic Moat
Twnb
Capital Allocation
Pjvxftmt

Bulls Say, Bears Say

Bulls

MS&AD's larger holdings of domestic equities relative to its capital mean that it stands to release the most capital over the coming six years as it and its rivals sell down strategic equity holdings to zero.

Bears

Among the three Japanese nonlife insurers, we think MS&AD has the highest sensitivity to fluctuations in Japanese stock prices, reflecting its smaller cushion of excess capital.

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News

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Trading Information

Previous Close Price
¥‎3,269.00
Day Range
¥‎3,338.00–3,392.00
52-Week Range
¥‎1,750.67–4,018.00
Bid/Ask
¥‎3,370.00 / ¥‎3,380.00
Market Cap
¥‎5.36 Tril
Volume/Avg
4.9 Mil / 5.6 Mil

Key Statistics

Price/Earnings (Normalized)
29.46
Price/Sales
0.60
Dividend Yield (Trailing)
3.06%
Dividend Yield (Forward)
3.06%
Total Yield
3.64%

Company Profile

MS&AD is Japan’s second-biggest nonlife insurer, trailing industry leader Tokio Marine in the scale of global operations although not in Japan. Like Tokio Marine and Sompo, MS&AD has grown into a second-tier presence in the domestic life insurance market since life and non-life insurance were mutually deregulated in 1996. Overseas, it is less focused on the US market than its two Japanese rivals and more focused on emerging Asia, but its acquisition of Lloyd’s syndicate Amlin in 2017 has increased its exposure to the European and North American markets. MS&AD has historical business connections with the Mitsui and Sumitomo groups (the ‘MS’ in the company name) and has a long-term partnership with Toyota Motor that is advantageous in acquiring auto insurance customers.
Sector
Financial Services
Industry
Insurance - Property & Casualty
Stock Style Box
Large Core
Total Number of Employees
44,839
Website
http://www.ms-ad-hd.com

Competitors

Valuation

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Metric
8725
8630
8766
Price/Earnings (Normalized)
 29.467.9815.40
Price/Book Value
 1.161.102.02
Price/Sales
 0.600.641.47
Price/Cash Flow
 —13.9119.64
Price/Earnings
8725
8630
8766

Financial Strength

Metric
8725
8630
8766
Quick Ratio
 ———
Current Ratio
 ———
Interest Coverage
 45.2235.8832.60
Quick Ratio
No chart available

Profitability

Metric
8725
8630
8766
Return on Assets (Normalized)
 1.62%3.45%2.89%
Return on Equity (Normalized)
 11.22%20.34%19.62%
Return on Invested Capital (Normalized)
 9.50%16.21%19.06%
Return on Assets
8725
8630
8766

Insurance - Property & Casualty Industry Comparables

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