Global Insurance Provider's Ambitious Growth Strategy
The company is aggressively pursuing its ambitions to become a major global insurance provider, offering both non-life and life insurance services across international and domestic markets. The strategic plan aims to elevate the fiscal year 2030 adjusted profit target to 800 billion yen from a previous 700 billion yen, with a long-term objective of reaching 1 trillion yen, achieving an adjusted return on equity of 15%.
Aligned with this goal, the company commits to a progressive dividend policy, predicting an 11% compound annual growth rate in earnings per share up to fiscal year 2030. Strategies include accelerating the sale of strategic equity holdings to redirect funds towards growth investments and enhancing shareholder returns. For fiscal year 2025, the adjusted profit under IFRS is projected at 918.7 billion yen (or 525.5 billion yen excluding equity gains), with a forecast of 800 billion yen (532 billion yen excluding equity gains) for 2026.
The company plans dividend payments of 160 yen for FY2025, increasing to 170 yen in FY2026, alongside anticipated share buybacks totaling 270 billion yen for FY2026. A policy shift to ensure a 50% payout of adjusted profit as ordinary dividends will be linked to the progress of equity sales. Financial soundness will be maintained with an Economic Solvency Ratio target exceeding 180%. The international business segment targets a 600 billion yen profit by the early 2030s, focusing on U.S. expansion through group synergies and diverse management structures.
In the domestic life insurance sector, the expansion of asset-building products will leverage partnerships with MassMutual and governance restructuring. The domestic non-life division aims for cost reductions of 150 billion yen by FY2030 through strategic premium rate adjustments and strengthened auto insurance collaborations. Furthermore, the company is enhancing its asset management capabilities through investments in Barings, broadening global investment opportunities and advancing risk management expertise.