Tokio Marine Holdings (8766): FY2025 Results Summary — International Strength Drives Underlying Profit Growth, Dividend Raised for 15th Straight Year

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Tokio Marine Holdings reported FY2025 (fiscal year ended March 31, 2026) results with Group Adjusted Net Income (JGAAP, previous definition, actual basis) of JPY1,204.8bn, down JPY10.1bn year on year, as a decline in capital gains from sales of business-related equities offset underlying growth; excluding those equity-sale gains, adjusted net income rose JPY102.7bn on strong International underwriting and Japan P&C rate increases. On a normalized basis (excluding one-off Nat Cat and North America capital gain/loss effects), adjusted net income fell JPY33.4bn YoY to JPY1,035.6bn, reflecting an increase in reserve provisions related to Greensill litigation in Australia and negative FX impact. From FY2026 the company transitions its primary disclosure to IFRS; on the new IFRS-basis definition, FY2026 Group Adjusted Net Income is guided at JPY950.0bn, up 8% YoY. The company also raised its FY2026 dividend per share to JPY245 (+12.4% YoY), marking the 15th consecutive annual increase, and plans a JPY400.0bn share buyback.

Consolidated Results (Full-Year Actual)

Group Adjusted Net Income (Actual, JGAAP previous definition) was JPY1,204.8bn in FY2025 versus JPY1,215.0bn in FY2024. By segment, International adjusted net income rose JPY45.5bn to JPY473.9bn, Japan P&C (TMNF) rose JPY46.2bn to JPY173.2bn, and Japan Life (TMNL) rose JPY15.1bn to JPY57.1bn, while Other fell JPY117.1bn to JPY500.5bn, mainly due to a JPY112.9bn decrease in capital gains from sales of business-related equities. Group top-line (combined net premiums written and life insurance premiums) grew 1% YoY to JPY5,943.5bn.

Item	FY2025	FY2024	Change
Group Adjusted Net Income (Actual, bn JPY)	1,204.8	1,215.0	-10.1 (excl. business-related equities: +102.7)
International	473.9	428.4	+45.5
Japan P&C (TMNF)	173.2	126.9	+46.2
Japan Life (TMNL)	57.1	41.9	+15.1
Other	500.5	617.6	-117.1
Group Adjusted Net Income (Normalized, bn JPY)	1,035.6	1,069.0	-33.4
Group Top-line (bn JPY)*1	5,943.5	5,891.9	+1%

Segment Results

International business drove the underlying profit improvement, with net premiums written up 6.1% YoY (+4.6% excluding FX) to JPY3,574.0bn and business unit profit up 10.6% YoY (+9.5% excluding FX) to JPY473.9bn. PHLY delivered record profit on strong underwriting; DFG’s profit rose on strong underwriting, investment income and lower capital losses; TMHCC’s profit declined mainly due to a negative FX effect between foreign currencies. Asia & Oceania business unit profit swung to a loss of JPY16.5bn, driven by an increase in reserve provisions related to Greensill litigation in Australia.

Segment	Metric	FY2025	FY2024
North America (Total)	Business Unit Profit (bn JPY)	428.4	362.9
PHLY	Business Unit Profit (bn JPY)	105.5	88.6
DFG	Business Unit Profit (bn JPY)	188.4	128.6
TMHCC	Business Unit Profit (bn JPY)	122.1	127.0
Europe	Business Unit Profit (bn JPY)	40.0	37.7
South & Central America	Business Unit Profit (bn JPY)	37.9	35.3
Asia & Oceania	Business Unit Profit (bn JPY)	-16.5	31.0
Total International	Business Unit Profit (bn JPY)	473.9	428.4
Total International	Net Premiums Written (bn JPY)	3,574.0	3,367.2

In Japan P&C, TMNF’s net premiums written (private insurance) grew 3.2% YoY to JPY2,402.5bn on rate and product revisions in auto and fire insurance, though this was slightly below the November projection of JPY2,429.2bn due to lower-than-expected specialty insurance revenue. Business unit profit rose JPY46.2bn YoY to JPY173.2bn, exceeding the November projection by JPY21.2bn on lower Nat Cat losses and solid investment income, despite deterioration in the auto loss ratio and increased Greensill-related reserve provisions.

Item	FY2025	FY2024	Change
Net premiums written (private insurance, bn JPY)	2,402.5	2,328.1	+74.4
Net premiums earned (private insurance, bn JPY)	2,398.0	2,313.6	+84.4
Net incurred losses (private insurance, bn JPY)	1,540.0	1,492.3	+47.6
Business expenses (private insurance, bn JPY)	754.7	735.8	+18.8
Business unit profit (bn JPY)	173.2	126.9	+46.2

FY2026 Forecast

From FY2026, Tokio Marine fully transitions to IFRS for its primary disclosure. On an IFRS (new definition) basis, FY2025 Group Adjusted Net Income is restated at JPY881.5bn, and FY2026 guidance calls for JPY950.0bn, up 8% YoY, with International contributing JPY634.0bn (+10%), Japan JPY305.0bn (flat YoY, comprising Japan P&C JPY223.0bn, -5.0%, and Japan Life JPY82.0bn, +18.3%), and Solutions JPY17.0bn (+20.1%). Group Total Business Volume (gross insurance premiums plus Solutions business sales) is guided to grow 8% YoY to JPY9,532.0bn.

Item	FY2026E (IFRS)	FY2025 (IFRS)	YoY
Group Adjusted Net Income (bn JPY)	950.0	881.5	+8%
International	634.0	578.5	+10%
Japan P&C	223.0	234.7	-5.0%
Japan Life	82.0	69.3	+18.3%
Solutions	17.0	14.1	+20.1%
Group Total Business Volume (bn JPY)	9,532.0	8,798.2	+8%

Shareholder Returns

Tokio Marine set FY2026 dividend per share at JPY245, up JPY27 (+12.4%) YoY and JPY7 above the November projection, marking the 15th consecutive annual dividend increase. After the IFRS transition, dividends will be based on a three-year average of IFRS Adjusted Net Income with a payout ratio of 50% as the general principle, while FY2026 continues to reflect continuity with the previous policy during the transition period. The company also plans a JPY400.0bn share buyback for FY2026, excluding additional repurchases needed to offset dilution from the JPY287.4bn third-party allotment to Berkshire Hathaway Group announced on March 23; such additional repurchases will be considered as part of shareholder returns in the second half of the fiscal year. The company’s ESR target is 190% or higher; ESR after execution of the planned JPY400.0bn buyback is estimated at 255% (234% after reflecting risk-taking expansion).

Medium-Term Plan / Topics

Under the current medium-term plan, Tokio Marine targets Adjusted EPS growth of +8% or more CAGR (JGAAP) and Adjusted ROE of 14% or more (JGAAP) for 2023-26. The company continues its program to reduce business-related equity holdings, targeting effectively zero holdings (excluding non-listed stocks and capital/business alliance-related investments) by the end of FY2029. FY2025 sales totaled JPY745.6bn, JPY145.6bn above original projections, with JPY430.0bn of sales planned for FY2026; this is expected to reduce the ratio of these holdings (market value basis) to IFRS net assets from 24.5% at end-FY2025 to a projected 19.4% by end-FY2026.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.