Tokio Marine Holdings Inc. increased its fiscal third-quarter profit through equity sales and lower catastrophe losses, estimating a ¥31 bn ($200 mn) loss from the Los Angeles wildfires.
Net income for the quarter rose to ¥895.2 bn ($5.88 bn) from ¥517.4 bn a year earlier. Net premiums written increased to ¥3.86 tn from ¥3.75 tn, while life insurance premiums declined to ¥603.8 bn from ¥805.8 bn.
Higher profit came from accelerated sales of business-related equities, strong capital gains, and increased overseas earnings, the company said in a presentation. Premium growth resulted from rate hikes in Japan and abroad, while life insurance premiums dropped due to a reinsurance transaction by Japan Life.
After-tax catastrophe losses declined to ¥108.5 bn from ¥124.2 bn. The company estimated a ¥15.3 bn loss from Hurricane Helene. The Los Angeles wildfires and Hurricane Milton, both fiscal fourth-quarter events, are expected to result in ¥13 bn and ¥31 bn losses, respectively.
Tokio Marine’s overseas businesses performed well, though Asia’s life insurance segment saw weaker earnings due to lower interest rates and yen appreciation.
Philadelphia Cos. recorded strong results, with an improved combined ratio of 93.8 from 94.1, benefiting from a lower loss ratio excluding catastrophes and favorable prior-year loss reserve development.
Delphi Financial saw strong underwriting profit in both life and property/casualty insurance, though its combined ratio worsened to 94.1 from 93.3. Tokio Marine HCC maintained consistent performance, with its combined ratio deteriorating to 88.6 from 87.2.
Tokio Marine Holdings nominated Masahiro Koike to replace Satoru Komiya as president, CEO of Tokio Marine Holdings, and group CEO of Tokio Marine Group. Koike will assume the role after the company’s shareholder meeting in June, pending approvals. Komiya will become chairman, replacing Tsuyoshi Nagano, who resigned, according to a company disclosure.
