First Read: Japan Post Insurance "How much can capital burden under old..."

Research evidence excerpt

First Read: Japan Post Insurance "How much can capital burden under old..."

Global Research

10 July 2026ab

First Read

EquitiesJapan Post Insurance

How much can capital burden under old Japan

classification be reduced? Insurance, Life

12-month rating Buy

12m price target ¥1,900

Conclusion

The addition of a new tool for risk management under the old classification leaves a

positive impression. However, at this stage, it is difficult to forecast earnings or make an Price (10 Jul 2026) ¥1,613

assessment. After confirming the scale of reinsurance ceded, reinsurance premiums, RIC: 7181.T BBG: 7181 JP

investment amount, degree of ESR improvement, and additional investment obligations,

Trading data and key metrics

we plan to revisit our view on the capital burden under the old classification.

52-wk range ¥1,763-1,138

Advance in liability management Market cap. ¥1,799b/US$11.1b

Japan Post Insurance announced that it will retrocede insurance underwriting risk Shares o/s 1,115m (ORD)

related to pre-privatisation policies to SCOR, and will also take a minority stake in a Free float 48%

reinsurance vehicle to be established by SCOR. The risks covered this time are not asset Avg. daily volume ('000) 2,538

management or interest-rate risks, which were central to past transactions, but Avg. daily value (m) ¥3,874.5

insurance underwriting risks, mainly longevity risk. The old classification includes many Common s/h equity (03/27E) ¥3325b

whole-life annuities and whole-life insurance policies, and is a closed account into which P/BV (03/27E) 0.5x

no new policies flow. Even if longevity risk increases, the company cannot diversify

EPS (reported, basic) (¥)

internally by adding new policies. In this vehicle, risks transferred from Japan Post

UBS Cons.