Tokio Marine Holdings reported a slight increase in net income for the nine months ended Dec. 31, 2025, as growth in its international and domestic life businesses and stronger investment income helped offset weaker results in domestic non-life.

Net income attributable to owners of the parent rose to ¥899.3 billion, up from ¥895.2 billion in the same period a year earlier. Ordinary profit slipped to ¥1.202 trillion from ¥1.219 trillion, reflecting a faster rise in ordinary expenses than in ordinary income. The period covers the first three quarters of Tokio Marine’s financial year ending March 31, 2026.

Ordinary income rises, but expense growth trims margins

Consolidated ordinary income for the nine months increased by ¥424.5 billion to ¥6.674 trillion. Underwriting income accounted for ¥4.825 trillion of that total, with net premiums written climbing to ¥4.146 trillion from ¥3.864 trillion. Investment income contributed ¥1.601 trillion, up slightly from ¥1.581 trillion, supported by higher interest and dividends and gains on trading securities and separate accounts, partly offset by lower gains on sales of securities.

Ordinary expenses rose by ¥441.2 billion to ¥5.472 trillion. Underwriting expenses increased to ¥4.119 trillion from ¥3.796 trillion, driven by higher net claims paid, agency commissions and brokerage, and larger provisions for underwriting reserves. Operating and general administrative expenses also moved higher, to ¥1.171 trillion from ¥978.2 billion. Investment expenses declined to ¥152.1 billion from ¥229.5 billion, helped by lower derivative losses, but the overall rise in expenses outpaced income growth.

Extraordinary gains and losses resulted in income before income taxes and non-controlling interests of ¥1.193 trillion, down from ¥1.208 trillion a year earlier. Total income taxes fell to ¥297.0 billion from ¥321.8 billion, supporting a modest increase in net income.

Domestic non-life weakens as life and international units pick up slack

In the domestic non-life insurance business, ordinary income decreased by ¥116.2 billion to ¥2.933 trillion, and ordinary profit fell by ¥133.0 billion to ¥690.4 billion, compared with the same period of the previous year. The company did not provide a detailed breakdown of drivers in this summary, but domestic non-life remains exposed to inflation in claims costs, catastrophe activity and competition.

The domestic life insurance business showed improvement, with ordinary income rising ¥77.9 billion to ¥423.9 billion. Ordinary profit increased by ¥81.3 billion to ¥117.2 billion, reflecting better performance in Tokio Marine’s life operations.

The international insurance business continued to expand. Ordinary income reached ¥3.381 trillion, up ¥322.9 billion year on year, while ordinary profit increased by ¥33.0 billion to ¥386.3 billion. The figures highlight the growing contribution of overseas units to group earnings, consistent with Tokio Marine’s long-running strategy of building scale in the US, Europe and Asia.

As of Dec. 31, 2025, consolidated total assets stood at ¥31.854 trillion, up ¥616.8 billion from March 31, 2025. Total liabilities were ¥26.503 trillion, compared with ¥26.134 trillion at the previous financial year-end.

How Tokio Marine stacks up against Sompo

Within Japan’s “Big Three” non-life groups, Tokio Marine’s latest numbers show a more modest net income increase than Sompo Holdings, which reported net income attributable to owners of the parent of ¥518.3 billion for the same nine‑month period, up ¥267.4 billion year on year on the back of a much larger jump in its insurance service and finance results. Sompo’s overseas insurance segment also delivered a strong uplift in profit, while its domestic P&C and life operations contributed meaningfully.

Against that backdrop, Tokio Marine’s profile stands out in two ways. First, its domestic non-life segment showed a notable decline in ordinary profit, whereas Sompo’s domestic P&C unit recorded a substantial year‑on‑year profit increase.

Second, both groups continue to see growing contributions from international business, but Sompo’s nine‑month profit growth was significantly faster on a percentage basis than Tokio Marine’s.

Full-year outlook raised despite domestic non-life headwinds

Tokio Marine revised its full-year forecast for the financial year ending March 31, 2026, now projecting ordinary profit of ¥1.380 trillion and net income attributable to owners of the parent of ¥1.020 trillion.

The forecast assumes net premiums written of ¥5.590 trillion, life insurance premiums of ¥930.0 billion, net incurred natural catastrophe losses of ¥74.0 billion in Japan and ¥73.0 billion overseas, and no major shifts in interest rates, equity markets or currency rates from recent levels.