Tokyo, Japan — Japan’s insurance sector has reported substantial gains in net income as of the end of March 2024, driven largely by reduced COVID-19-related expenses in both the life and non-life insurance segments.
According to data released by Japan’s Financial Services Agency (FSA), net income for life insurers surged by 23.1% to ¥19.9 billion ($125.37 million), a significant increase from the ¥3.8 billion ($23.94 million) recorded in the previous year. This growth was attributed to higher core business profits, stemming primarily from decreased hospitalization benefit payments related to COVID-19, albeit offset partially by increased hedging costs for foreign exchange.
Premium and other income for life insurers also saw a notable rise, climbing 12.9% to ¥365.9 billion ($2.31 billion). The FSA noted that this increase was driven by heightened single premium insurance denominated in yen, buoyed by rising domestic interest rates.
Similarly, non-life insurers in Japan reported a more than doubling of net income attributable to shareholders, reaching ¥14.8 billion ($93.24 million). The FSA cited increased investment profits and reduced COVID-19 losses, particularly in overseas operations, as the primary drivers behind this growth.
Despite a slight 5.8% increase in net premiums written to ¥127.8 billion ($805.14 million), the FSA highlighted robust performance in overseas operations and the yen’s depreciation, counterbalancing a contraction in domestic fire insurance contracts following October 2022 rate revisions.
The FSA’s exchange rate of $1.00 to ¥0.0063 underlined the financial context for these figures.
These financial results underscore the resilience and adaptability of Japan’s insurance industry amid evolving economic conditions and shifting global health dynamics.
For further information, please contact the FSA or respective insurers directly.
