MS&AD Insurance Group Holdings Inc 8725

JPY 3,167.00 +18.00 (0.57%)

As of May 22, 2024 2:17am Delayed Price Open

Company Report

MS&AD Earnings: Improved P&C Underwriting Margins and Accelerated Equity Sales to Boost Profit

Lorraine Tan, Iris Tan May 21, 2024

MS&AD Insurance’s fiscal 2023 (ended March 2024) adjusted net profit of JPY 380 billion grew 71% year on year, helped by a broad-based turnaround in the domestic property and casualty, life, and overseas businesses. This exceeded revised April guidance of JPY 350 billion by 9%. Fiscal 2024 adjusted net profit is guided at JPY 630 billion, up 66% year on year and above market expectations, driven by 129% and 9.7% growth in the domestic P&C and overseas businesses.

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Bulls Say, Bears Say

Bulls

MS&AD trades at a steeper discount to adjusted book value than its closest peers.

Bears

We believe MS&AD has less excess capital than Tokio Marine and Sompo.

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Trading Information

Previous Close Price: JPY 3,149.00
Day Range: JPY 3,135.00–3,220.00
52-Week Range: JPY 1,572.67–3,265.00
Bid/Ask: JPY 3,166.00 / JPY 3,168.00
Market Cap: JPY 5.02 Tril
Volume/Avg: 5.9 Mil / 5.8 Mil

Key Statistics

Price/Earnings (Normalized): 8.19
Price/Sales: 0.58
Dividend Yield (Trailing): 3.25%
Dividend Yield (Forward): 3.61%
Total Yield: 3.29%

Company Profile

MS&AD is Japan’s second-biggest nonlife insurer, trailing industry leader Tokio Marine in the scale of global operations although not in Japan. Like Tokio Marine and Sompo, MS&AD has grown into a second-tier presence in the domestic life insurance market since life and non-life insurance were mutually deregulated in 1996. Overseas, it is less focused on the US market than its two Japanese rivals and more focused on emerging Asia, but its acquisition of Lloyd’s syndicate Amlin in 2017 has increased its exposure to the European and North American markets. MS&AD has historical business connections with the Mitsui and Sumitomo groups (the ‘MS’ in the company name) and has a long-term partnership with Toyota Motor that is advantageous in acquiring auto insurance customers.

Sector: Financial Services
Industry: Insurance - Property & Casualty
Stock Style Box: Large Growth
Total Number of Employees: 38,367
Website: http://www.ms-ad-hd.com

Competitors

Valuation

Metric	8725	8766	8750
Price/Earnings (Normalized)	8.19	15.93	17.23
Price/Book Value	1.29	2.22	0.94
Price/Sales	0.58	1.44	0.36
Price/Cash Flow	58.90	26.84	—

Price/Earnings

8725

8766

8750

Financial Strength

Metric	8725	8766	8750
Quick Ratio	—	—	—
Current Ratio	—	—	—
Interest Coverage	40.70	29.69	10.12

Quick Ratio

No chart available

Profitability

Metric	8725	8766	8750
Return on Assets (Normalized)	1.56%	2.54%	0.74%
Return on Equity (Normalized)	11.73%	18.24%	16.29%
Return on Invested Capital (Normalized)	9.76%	17.68%	10.27%

Return on Assets

8725

8766

8750

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