First Read: Japan P&C "Slightly positive: Three P&C insurers reported so..."

Research evidence excerpt

First Read: Japan P&C "Slightly positive: Three P&C insurers reported so..."

Global Research

20 May 2026ab

First Read

EquitiesJapan P&C

Slightly positive: Three P&C insurers reported Japan

solid earnings; significant capacity for Insurance, Property & Casualty

shareholder returns, but differences in agility KoichiAnalystNiwa

koichi.niwa@ubs.com

+81-3-5208 6245

Makoto IshiiQ: How did the three companies' results come in overall?

Associate Analyst

The results of the three P&C insurance groups confirmed that high levels of shareholder makoto.ishii@ubs.com

returns can be expected, supported by favourable fundamentals. Their earnings +81-3-5208 3097

capability on a normalised basis is steadily improving due to domestic rate revisions and

growth in overseas businesses. While the softening of overseas insurance markets is a

concern, the overall business environment is expected to remain relatively favourable.

Meanwhile, capital adequacy ratios are at high levels across all companies, though the

agility in shareholder returns varies among them. In the short term, the focus will likely

be on the scale of returns, while in the medium to long term, the key point will likely be

how much sustainable growth expectations can be fostered through growth

investments.

Q: How were the results of Tokio Marine Holdings (8766)?

Positive: our impression is positive for strong overseas businesses and strengthened

shareholder returns (Earnings Materials)

What were the most noteworthy areas in the results? Continued profit growth

trend in the overseas operations, centring on the North American insurance business.

On the other hand, it should be noted that further ROE improvement is a medium- to

long-term theme, on the back of the ample capital (ESR 268%), which is higher than the

target level.