MS&AD Holdings (8725): Group adjusted profit guidance raised by ¥240bn to ¥1tn; somewhat positive

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MS&AD Holdings (8725): Group adjusted profit guidance raised by ¥240bn to ¥1tn; somewhat positive

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MS&AD Holdings (8725)

Group adjusted profit guidance raised by

¥240bn to ¥1tn; somewhat positive

Maintain Rating: BUY | PO: 4,640 JPY | Price: 4,024 JPY

12 May 2026

Large portion of upward revision driven by equity gains Equity

On May 11, MS&AD raised its FY3/26 group adjusted profit guidance by ¥240bn. By

segment, this comprises ¥150bn from domestic non-life insurance, ¥75bn from overseas Natsumu Tsujino, CFA >>

Research Analyst

operations, and ¥15bn from life insurance. The breakdown below is on an after-tax basis. BofAS Japan

natsumu.tsujino@bofa.com

Within domestic non-life, the ¥150bn upside reflects ¥22bn from lower-than-assumed

natural catastrophe losses (Exhibit 7), ¥73bn from higher-than-expected gains on equity

sales, and the remainder primarily from stronger dividend and interest income.

Stock Data

Of the ¥75.0bn upward revision in overseas operations, approximately ¥20.0bn came Price 4,024 JPY

from lower nat cat losses, while other factors included ¥10bn in FVTPL gains at overseas Price Objective 4,640 JPY

life insurance, ¥10bn from MS Amlin, and broader upside across multiple regions Date Established 25-Nov-2025

including the US and Asia. Investment Opinion B-1-7

In life insurance, both MSP and MSA appear to have benefited from stronger-than- 52-Week Range 3,041-4,383 JPY

expected dividend and interest income. Market Value (mn) 6,472,196 JPY

Market Value ($mn) 41,223 USD

Shares Outstanding (mn) 1608.4Anticipate an increase in buybacks and no change in DPS

Under the company’s policy, 50% of group adjusted profit needs to be returned to Average Daily Value ($mn) 88.1 USD

shareholders.