Sompo Japan Nipponkoa posts 25% YOY drop in net profit on lower investment income

Sompo Japan Nipponkoa Holdings posted a year-on-year drop in attributable net profit for the period April-June, its first accounting quarter of 2016, as foreign exchange moves dented investment profits.

Sompo Japan Nipponkoa’s attributable net income fell 24.6 percent year-on-year between April-June to ¥19.98 billion (£151.58).

Investment profit dropped to ¥20.7 billion from ¥38.1 billion in the same period of 2015 mainly driven by net losses on foreign exchange caused by a strong yen.

At the same time, underwriting performance improved year-on-year to a ¥12.7 billion profit compared to an underwriting loss of ¥5.8 billion in the first quarter of 2015.

The combined ratio of the domestic property/casualty business improved to 89.8 percent in the period April-June (excluding CALI, household earthquake) compared to 94.5 percent in the 2015 full year.

For 2016 the group expects its consolidated net income to drop 12.3 percent to ¥140.0 billion compared to 2015.