Nippon Life announced solid financial results for fiscal year 2024. The company’s net income increased by 5.7% year-on-year, reaching $3.0 billion (¥435 billion). Core profit grew significantly, soaring 32.3% to $6.97 billion (¥1.01 trillion). This improvement was driven by better performance from both the parent company and its subsidiaries.
Investment Spreads and Income Trends
Investment spreads rose sharply by 93.6%. This growth was fueled by higher interest income, dividends, and other returns from Nippon Life and Nippon Fortune Life. However, insurance income fell slightly by 5.2%.
Premiums and New Business Performance
Gross premiums decreased by 8.6% to $54.23 billion (¥7.86 trillion) in FY 2024. This decline was mainly due to lower sales to financial institutions and sales representatives. New business also shrank by 5.6%, totaling $3.4 billion (¥493 billion). This follows a strong performance in FY 2023, when gross premiums rose 20.9% and new premium growth reached 29.1% on an annualized basis.
Solvency Ratio and Capital Stability
The solvency ratio based on economic value remained stable at 222%, compared with 224% in FY 2023. Contributions from new business and favorable economic experience helped offset negative impacts from investments. Fitch Solutions Services CreditSights stated that it remains comfortable with Nippon Life’s capital position.
Outlook for the Future
Looking ahead, CreditSights expects insurance and service income to decline due to weaker performance at Nippon Life and Nippon Fortune Life. However, they anticipate growth in core operating profit driven by the company’s overseas expansion efforts.
Nippon Life’s FY 2024 results reflect a strong financial foundation despite some challenges in premiums and insurance income. The company’s focus on investment returns and global growth remains key to its future strategy.
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