MS&AD Insurance Group Holdings: Underlying earnings power increases through strong capital generation and reallocation

研报英文原文证据摘录

MS&AD Insurance Group Holdings: Underlying earnings power increases through strong capital generation and reallocation

Global Research

26 June 2026ab

First Read

EquitiesMS&AD Insurance Group Holdings

Underlying earnings power increases through Japan

strong capital generation and reallocation Insurance, Full-Line

12-month rating Buy

12m price target ¥5,600

Maintaining Buy rating

Prior : ¥4,900

We are raising our price target from ¥4,900 to ¥5,600 and maintaining our Buy rating.

The discount applied by the market on the company is mainly attributable to: (1) Price (25 Jun 2026) ¥4,252

concerns over deterioration in share supply-demand dynamics due to the sale of RIC: 8725.T BBG: 8725 JP

strategic shareholdings and (2) low confidence in its growth strategy. We believe these

Trading data and key metrics

issues have already been overcome. Regarding the first concern over supply-demand

dynamics, major shareholders have already sold their shares, which appears to have 52-wk range ¥4,673-3,085

removed any market concerns (Toyota sells MS&AD shares, 25 June edition of the Market cap. ¥6,346b/US$39.2b

Nikkei; Japanese only). Visibility on the second issue, the growth strategy, has also Shares o/s 1,493m (ORD)

improved. Specifically, we now see a high probability that (1) substantial gains will be Free float 90%

generated from the sale of strategic shareholding through 2030, (2) cost savings from Avg. daily volume ('000) 4,199

the domestic non-life insurance business integration in April 2027 will translate directly Avg. daily value (m) ¥17,946.1

into profit, and (3) management's timely decisions to invest in W.R. Berkley and Barings Common s/h equity (03/27E) ¥5721b

have clarified the path to profit growth in overseas operations. In light of management's P/BV (03/27E) 1.1x