Japan Post Insurance Co. increased its nine-month net income due to stronger investment performance in a better market environment.
Net income for the period reached ¥84.4 bn ($550 mn), up from ¥65.1 bn a year earlier. Investment income rose to ¥909.1 bn from ¥876.5 bn.
The number of individual policies in force declined 3.0% to 19.1 mn, while annualized premiums dropped 2.8% to ¥2.90 tn compared to the previous fiscal year-end.
Despite the added cost of regular policy reserves from new policies, JPI reported stronger results. Adjusted profit, which accounts for the impact of these reserves in the first year and goodwill amortization, increased 62.3%.
The number of new-category policies declined 1.2% from the previous fiscal year-end, though the company stated it remains focused on achieving a swift turnaround and recovery in this segment.
Higher new business value resulted from rising interest rates and an increase in new policies, according to JPI.
Reinsurance Group of America Inc. recently agreed to reinsure ¥700 bn in individual life annuities through coinsurance in partnership with a JPI affiliate.
