P&C Insurance Subsector: Implications from Kumamoto earthquake (initial assessment)

Research evidence excerpt

P&C Insurance Subsector: Implications from Kumamoto earthquake (initial assessment)

J P M O R G A N Asia Pacific Equity Research

28 July 2026

P&C Insurance Subsector

Implications from Kumamoto earthquake (initial

assessment)

We would like to express our heartfelt sympathy to those affected by the earthquake Japan Equity Research

in Kumamoto Prefecture, and hope the affected areas make the swiftest possible

Insurance, Securities, Diversified

recovery. Financials

Koki Sato AC

On July 28 at around 4:27 p.m. Japan time, an earthquake occurred in Kumamoto

(81-3) 6736-8609

Prefecture with a magnitude of up to 7. Information on the damage situation was koki.sato@jpmorgan.com

limited at the time of this writing this note, and it is still too early to make Yuka Azami

predictions at this stage; however, we summarize our views on the likely impact (81-3) 6736-8619

at each P&C insurance company below. yuka.azami@jpmorgan.com

JPMorgan Securities Japan Co., Ltd.

• Earthquake damage impact and past cases: Household-related earthquake

damage is generally covered by a government-managed reinsurance scheme,

resulting in a neutral impact on earnings at private-sector insurance companies.

However, private-sector insurance companies may be responsible for

underwriting earthquake extension coverage and business interruption losses

associated with commercial properties. Plants producing the likes of

semiconductors, beverages, and paper are near the epicenter, and we thus

recommend monitoring the damage situation. In the case of the 2016

Kumamoto earthquake, the amount of insurance claims paid mainly to

households was nearly ¥400 billion, and net underwriting losses (after

reinsurance deductions) were ¥12.7 billion at Tokio Marine Holdings (8766),