JAPAN POST INSURANCE Co.,Ltd. [7181.T]
TOKYO, May 15 (Pulse News Wire) – Japan Post Insurance CO.,LTD. (7181.T) reported record operating profit for the fiscal year ended March 2026, driven by improved investment conditions and reduced initial-year standard liability reserve burdens.
The company's net profit reached ¥168.7 billion, marking a ¥45.30 billion increase compared to the previous year. Adjusted earnings also hit a record high at ¥171.5 billion, up ¥25.70 billion. Looking ahead, the insurer expects to maintain stable earnings despite a decline in contract renewals. It forecasts adjusted earnings of approximately ¥155.0 billion for the fiscal year ending March 2027.
In light of this outlook, the board approved a dividend hike to ¥50 per share, effective April 01, 2026. Japan Post Insurance noted that its economic value-based solvency regulation was implemented starting March 2026, leading to changes in how new contract values and economic value (EV) are measured. The company anticipates continued growth in EV, which increased to ¥4 trillion, reflecting higher domestic equity gains. For the upcoming fiscal year, key assumptions include a potential drop in domestic interest rates by 50 basis points and a rise in hedging costs by 50 basis points, impacting overall profitability.
Despite these challenges, management remains confident in achieving their forecasted targets.
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