Sompo Holdings projects 2018 recovery after 2017 profit decrease

Sompo Holdings has revealed that its consolidated ordinary profit for full year 2017 decreased by ¥99.8 billion to ¥141.8 billion ($1.28 billion), mainly due to the impact of hurricanes in North America and large losses.

Consolidated net income for FY2017 decreased by just ¥26.5 billion to ¥139.8 billion, mainly due to a decrease in tax expenses in connection with the reorganization of Sompo International.

However, the company said that its consolidated ordinary profit is projected to double in 2018 based on growth in each business with stripping out of onetime factors and that it plans for its consolidated net income to increase by ¥70.1 billion to a record-high ¥210.0 billion.

Sompo plans to bring all international businesses outside Japan under the ownership of Bermuda-based Sompo International by 2020. The company has 45 licensed entities spanning 32 countries throughout Europe, North and South America, Asia and Oceania, the Middle East and Africa.

Sompo has acquired Endurance for an aggregate purchasing price of ¥637.5 billion in 2017.

Overseas insurance saw net income decrease by ¥57.3 billion, mainly due to hurricanes in North America.

Overall, Sompo expects the group’s consolidated net income to increase by ¥70.1 billion to a record-high ¥210.0 billion in the 2018 financial year.