Key Facts
• On May 26, 2025, nine major Japanese life insurers released forecasts for FY2026.
• Five insurers expect a decline in core profits due to reduced interest and dividend income.
• Increased standard liability reserves for future insurance payouts contribute to profit decline.
• Overseas insurance business revenue is projected to grow steadily.
• Nippon Life predicts a second consecutive drop in premium income by FY2026.
• Dai-ichi Life Holdings anticipates overseas business to offset declining domestic income.
• Meiji Yasuda Life faces higher reserve burdens, impacting profitability.
• Fukoku Life expects reduced core profits due to salary increases under a new profit-sharing policy.
• Market volatility, driven by U.S. tariffs, poses risks for all insurers.
• T&D Holdings plans to mitigate risks with asset-liability management (ALM) strategies.
• In FY2025, eight of nine insurers saw core profit growth, driven by higher interest and dividend income.
• Nippon Life’s core profit exceeded ¥1 trillion for the first time in the industry.
• Fukoku Life achieved record-high core profits for two consecutive years.
Summary
Japan’s nine major life insurers have released their FY2026 forecasts, with five expecting core profit declines due to reduced interest and dividend income and increased reserve requirements. Despite these challenges, overseas insurance business growth is expected to provide stability. Nippon Life and Dai-ichi Life Holdings anticipate mixed results, with domestic income declining but overseas operations offering support. Market volatility, influenced by U.S. tariffs, remains a key risk, prompting insurers like T&D Holdings to adopt ALM strategies. In FY2025, eight insurers experienced core profit growth, with Nippon Life surpassing ¥1 trillion in core profit and Fukoku Life achieving record highs for two consecutive years.
