Japan Post Insurance (7181): FY2025 Results Summary — Record Adjusted Profit of ¥171.5bn Despite Decline in New Policies

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Japan Post Insurance reported consolidated net income of ¥168.7 billion for the fiscal year ended March 31, 2026 (FY2025), up from ¥123.4 billion in FY2024. Adjusted profit rose to a record high of ¥171.5 billion, and positive spread also reached a record high of ¥255.5 billion, driven mainly by the diversification of asset management. However, the number of new policies declined during FY2025 following the revelation of improper use of private financial information, and the company resumed efforts to attract new customers in May 2026. Alongside the results, the company unveiled a new Medium-Term Management Plan for FY2026–FY2028, targeting Adjusted Profit of approximately ¥190.0 billion and Adjusted ROE of approximately 10% by FY2028.

Consolidated Results (Full-Year Actual)

Consolidated net income for FY2025 was ¥168.7 billion, up from ¥123.4 billion in FY2024. Adjusted profit — used as the source of shareholder returns since FY2024 — rose to a record ¥171.5 billion from ¥145.7 billion, and Adjusted ROE improved to 10.1% from 8.8%. Positive spread, supported by continued diversification of asset management including the build-up of alternative assets and the capital and business alliance with Mitsui & Co., Ltd. and Daiwa Securities Group, reached a record ¥255.5 billion, up from ¥142.5 billion in FY2024. The company’s ESR (Economic Solvency Ratio) stood at 181% as of March 31, 2026, within the appropriate range of 150%–220%, but down 15 points from 196% a year earlier mainly due to the impact of the mass lapse risk; ESR excluding the mass lapse risk was 220%.

Item	FY2025	FY2024	Change
Consolidated net income (¥bn)	168.7	123.4	+45.3
Adjusted profit (¥bn)	171.5	145.7	+25.8
Adjusted ROE	10.1%	8.8%	+1.3pt
Positive spread (¥bn)	255.5	142.5	+113.0
EV, fiscal year-end (¥bn)	4,256.5	3,940.9	+315.6
ESR, fiscal year-end	181%	196%	(15)pt

Segment Results

Japan Post Insurance’s new business metrics reflect the impact of the improper use of private financial information disclosed during FY2025. The number of new policies (individual insurance) fell to 42 (10 thousand) in FY2025 from 79 (10 thousand) in FY2024, and Value of New Business declined to ¥61.5 billion from ¥67.9 billion. The total number of policies in force (individual insurance) decreased to 1,772 (10 thousand) from 1,881 (10 thousand), comprising 1,214 (10 thousand) post-privatization policies and 557 (10 thousand) Postal Life Insurance policies. Despite the decline in new business, the policy continuation rate remained among the highest in the industry, and customer satisfaction held steady at 84%, unchanged from FY2024.

Segment	Metric	FY2025	FY2024
Individual Insurance (Total)	Number of new policies (10 thousand)	42	79
Individual Insurance (Total)	Value of New Business (¥bn)	61.5	67.9
Individual Insurance (Total)	Number of policies in force (10 thousand)	1,772	1,881
Post-Privatization Policies	Number of policies in force (10 thousand)	1,214	1,278
Postal Life Insurance Policies	Number of policies in force (10 thousand)	557	602
Individual Insurance (Total)	Customer satisfaction	84%	84%

FY2026 Forecast

For FY2026 (fiscal year ending March 31, 2027), Japan Post Insurance expects Adjusted profit — the source of shareholder returns — of approximately ¥155.0 billion, down from the FY2025 record of ¥171.5 billion. Adjusted spread is forecast to expand further to ¥220.0 billion from ¥203.5 billion (recalculated basis) in FY2025, supported by active investment in yen-denominated bonds and rebalancing of return-seeking assets. Commissions paid to Japan Post Co. are expected to decrease to ¥74.5 billion from ¥89.8 billion, mainly reflecting the decline in new policies. The company plans to raise the dividend per share to ¥150 (before the 3-for-1 stock split effective April 1, 2026), equivalent to an expected ¥50 after the split, up from ¥124 (¥41 post-split equivalent) in FY2025.

Item	Forecast (FY2026)	FY2025 (Actual)
Adjusted profit (¥bn)	Approx. 155.0	171.5
Adjusted spread (¥bn)	220.0	203.5
Dividend per share, pre-split (¥)	150	124
Dividend per share, post-split equivalent (¥)	Expected 50	41
Commissions paid to Japan Post Co. (¥bn)	74.5	89.8

Shareholder Returns

Japan Post Insurance’s basic policy is to aim not to decrease but to increase dividends per share in principle. The total payout ratio for FY2025 was 52.7%, up from 51.4% in FY2024, exceeding the previous Medium-Term Management Plan’s target range of 40%–50% (actual average of approximately 47% from FY2022 to FY2026). Under the new Medium-Term Management Plan, the company raised its target average total payout ratio to approximately 55% over the medium term. Effective April 1, 2026, the company implemented a 3-for-1 stock split; on a post-split basis, it targets a dividend per share of ¥62 or more for FY2028, more than double the level of the first year of the previous Medium-Term Management Plan.

Item	FY2025 (Actual)	FY2024 (Actual)	FY2028 Target
Dividend per share, pre-split (¥)	124	104	186 or more
Dividend per share, post-split equivalent (¥)	41	—	62 or more
Total payout ratio	52.7%	51.4%	Approx. 55% (medium-term average)

Medium-Term Plan / Topics (FY2026–FY2028)

In May 2026, Japan Post Insurance announced a new Medium-Term Management Plan covering FY2026–FY2028, positioning the period as a ‘Growth and Challenge Phase.’ Key financial targets for FY2028 include Adjusted Profit of ¥190.0 billion, Adjusted ROE of approximately 10%, and an EV growth rate per share averaging 8% or more over the medium term. Non-financial targets include bottoming out the total number of policies in force and reversing the decline in post-privatization policies, aiming for 16.0 million or more policies in force (of which 11.5 million or more post-privatization) and 1.2 million or more new policies in FY2028, alongside a customer satisfaction target of 93% or more. The plan also calls for Adjusted spread of ¥290.0 billion in FY2028, profit contributions from inorganic growth of ¥25.0 billion or more, and an investment of approximately ¥90.0 billion in AI and digital technologies to restructure operations.

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