The combined group net profit of Japan’s leading nonlife insurance companies is expected to climb to a record 590 billion yen or $5.38 billion.
Tokio Marine Holdings, Sompo Japan Nipponkoa Holdings and MS&AD Insurance Group Holdings likely increased their combined group net profit by 30% for the year ending in March, according to an online report by the Nikkei Asian Review
The report said Sompo Japan posted the biggest earnings increase among the three insurers, as its net profit is likely to hit a record 160 billion yen.
MS&AD Insurance is also expected to have a record net profit of 180 billion yen, while Tokio Marine would match its highest net profit of 247.4 billion yen that was achieved in the previous year.
The three companies’ auto insurance business also improved their bottom lines due to premium hikes and declining payouts, the Nikkei Asian Review
A spike in the number of clients switching to long-term fire insurance policies in October also boosted the insurers’ profits, the report added.
The insurers also tapped reserves to cover payouts to typhoon victims, further increasing their profits.