Nippon Life profit rises 24.7% as capital buffer eases

Insurance and service revenue climbed 24.9% year-on-year.

Nippon Life’s core operating profit rose 24.7% year-on-year to $1.6b (JPY260.8b) in the first quarter of fiscal 2026, supported by higher investment yield margins and insurance-related gains, whilst its economic solvency ratio (ESR) eased to 190% from 195%.

CreditSights said Nippon Life’s capitalisation remained strong despite the decline in its ESR. 

The internal-model ESR fell to 190% from 195% as higher interest rates increased mass lapse risk, but remained well above the 100% supervisory threshold.

Consolidated insurance and service revenue rose 24.9% year-on-year to $17.9b (JPY2,848.5b), driven by higher single-premium whole life and group annuity sales at the parent company, as well as the first full-quarter consolidation of Resolution Life and the Acenda Group.

Overseas operations also contributed to earnings.

Resolution Life generated $112.1m (JPY17.8b) in core profit, with its local core profit rising 418.2% to $114m.

Corebridge contributed $152.5m (JPY24.2b) through the equity method, whilst the Acenda Group recorded a $46.6m (JPY7.4b) loss.

At the parent company, Nippon Life continued to rebalance its Japanese government bond portfolio.

Losses on securities sales increased by $162.5m (JPY25.8b) to $1.4b (JPY223.1b), whilst JGB holdings fell to $163.0b (JPY25,873.3b) from $166.7b (JPY26,458.9b). 

Net investment income rose 4.3% to $1.3b (JPY210.9b) despite higher valuation losses.

($1.00 = JPY159.04)