Meiji Yasuda Receives Outperform Recommendation
Tokyo, Japan – March 6, 2025 – CreditSights has initiated an ‘Outperform’ recommendation for Meiji Yasuda, one of Japan’s largest life insurers. The financial analysis firm cited the company’s solid balance sheet and robust solvency margin as key factors driving the positive outlook.
CreditSights’ report highlighted Meiji Yasuda’s position among the top five life insurers in Japan, emphasizing its strong financial foundation and superior solvency, a metric that gauges a company’s ability to meet its long-term financial obligations.
Premium Performance
The report indicates that while standalone premiums modestly declined, consolidated premiums demonstrated growth. Specifically, Meiji Yasuda’s standalone premiums decreased by 0.9% to JPY2.1tn (US$13.9bn). However, the company’s consolidated premiums, which includes StanCorp, saw a 0.6% year-over-year increase reaching JPY2.5tn. The data also revealed a 2.1% drop in annualized new premiums, totaling JPY94.6bn.
Profitability and Income
Despite the positive results, consolidated net income decreased by 6.4% year-over-year, attributed to increased provisions for contingency reserves linked to insurance and investment yields along with reserves allocated for price fluctuation due to market volatility. As a standalone entity, Meiji Yasuda’s core profit increased by 9.1% to JPY314.6bn. However, the overall consolidated core profit rose by 7.8% and reached JPY377.4bn.
Outlook
Meiji Yasuda has revised its outlook for the fiscal year 2024, anticipating a rise in insurance premiums to approximately JPY3.4tn, up from JPY3.3tn in FY2023 (+3%). This increase is primarily driven by the company’s strategic overseas business expansion. The report forecasts a 1.6% rise in core profit, reaching JPY570bn in FY2024, compared to JPY561bn in FY2023. This optimistic outlook reflects the company’s confidence in achieving further growth through mergers, acquisitions and an enhanced market presence, supported by increased interest income and dividend income.
