Sompo predicts ‘a record high’ for 2019 despite domestic disasters

Japan-based specialty reinsurer Sompo Holdings has predicted it will see “a record high” in its fiscal year 2019 (FY 2019) results for ordinary profit and consolidated net income, as it reported steady increases in net income for FY 2018.

The company said the figures for FY 2018 (ended March 31, 2019) “reflect the impact of domestic natural disasters” as results revealed a drop in net premiums written for property and casualty.

They fell 4.8 percent to ¥2,718 billion in FY2018 from ¥2,854 billion for the same period the previous year. However, the firm’s net income rose 4.9 percent, reaching ¥146.6 billion for FY 2018, up from ¥139.8 billion for FY 2017.

The company said it had offset net incurred losses related to domestic natural disasters “with net reversal of catastrophic loss reserve and acceleration in reduction of strategic-holding stock”, which brought its consolidated ordinary profit up by ¥57 billion to ¥198.9 billion.

The reinsurer will buyback shares to the tune of ¥33.5 billion “as a part of the shareholder return reflecting the performance for the fiscal year ended March 31, 2019.”

Sompo’s management also agreed a rise in dividend per share for the sixth consecutive year (including FY2019 forecast).

In its highlights for the FY2018 results, Sompo said: “Consolidated net income for FY2018 increased by ¥6.8 billion, partly due to the rebound of a decrease in tax expenses in connection with the reorganization of SI, etc. in FY2017.

“Consolidated ordinary profit and consolidated net income in FY2019 are expected to increase to a record-high based on normalization of the impact from domestic natural disasters and growth in overseas insurance business.”

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