Hurricanes flatten Sompo results
Hurricanes in North America have reduced Sompo’s consolidated net profit to ￥1.9 billion ($20 million) in the six months ended Sept. 30 (first half of Sompo’s financial year) compared to ￥43.4 billion in the same period a year ago.
The impact of hurricanes in North America at Sompo International (SI) and Canopius impacted the consolidated net income with ¥57.6 billion.
At the same time, the top-line increased due to higher net premiums written at Sompo Japan Nipponkoa and the start of the consolidation of the profit/loss of SI (Endurance).
Sompo has acquired specialty insurance group Endurance for an aggregate purchasing price of ¥637.5 billion ($6.3 billion) earlier in the year.
Sompo reported net premiums written grew 17.1 percent year on year to ¥1.50 trillion in the six months ended Sept. 30.
Sompo has adjusted its business forecasts for the full year ending March 2018. Adjustments include extraordinary losses related to the sales of fixed assets, along with the impact of the sale of Canopius.
A private equity consortium led by Centerbridge Partners, including the private investment firm Gallatin Point Capital, will acquire Sompo Canopius for $952 million.
Adjusted consolidated profit is now projected at ¥195.0 billion, ¥9.9billion below the previous forecast.
Also included in Sompo’s business forecast is a decrease in tax expenses scheduled to materialize in the six months ending March 2018 in connection with the reorganization of (SI), as well as the impact of hurricanes in North America.
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