Earnings Alerts

MS&AD Insurance (8725) Earnings: FY Net Income Soars Above Estimates, Brilliant Fourth Quarter Results Seen

• MS&AD’s forecast for the fiscal year net income surpasses estimates, reaching 610.00 billion yen instead of the estimated 381.21 billion yen.

• The projected dividend also exceeds expectations, with a proposal of 145.00 yen relative to the estimated 95.63 yen.

• Nevertheless, the fourth quarter results fell short of estimates, with a net income of 87.67 billion yen versus the projected 193.66 billion yen.

• In terms of market sentiment, the outlook on the company is mixed with 4 buys, 6 holds, and 1 sell.


MS&AD Insurance on Smartkarma

Analyst coverage of MS&AD Insurance on Smartkarma highlights the impact of cross-shareholding on the company’s investments. Sumeet Singh‘s research report, “MS&AD Cross-Shareholding – At Least US$20bn of Cross-Shareholding to Sell,” sheds light on the Japanese Financial Services Agency’s directive for insurers to trim their cross-shareholding. With MS&AD having stakes exceeding US$100m in multiple listed Japanese stocks totaling US$17.4bn, the report delves into potential sell-down candidates within the portfolio.

Additionally, Travis Lundy‘s insights in “[Japan Governance] FSA Urges Japan Non-Life Insurers to Eliminate Cross-Holdings – Sales Coming” emphasize the urgency for Japan’s non-life insurers to eliminate cross-holdings following recent scandals. The FSA’s pressure to expedite liquidation of Β₯6.5trln+ of 5,900 Cross-Holdings among major insurers underscores the evolving governance landscape impacting companies like MS&AD Insurance. The research provides valuable insights for investors navigating the implications of these regulatory changes in the insurance sector.


A look at MS&AD Insurance Smart Scores

FactorScoreMagnitude
Value4
Dividend4
Growth5
Resilience5
Momentum5
OVERALL SMART SCORE4.6

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

MS&AD Insurance Group Holdings, Inc., the parent company of Mitsui Sumitomo Insurance, has a promising long-term outlook based on the Smartkarma Smart Scores. With strong scores of 4 for Value, 4 for Dividend, and impressive ratings of 5 for Growth, Resilience, and Momentum, the company is positioned well across key factors. MS&AD Insurance Group offers a wide range of insurance policies, including marine, fire, casualty, automobile, life, and allied insurance, along with financial services and agencies.

Based on the combination of high scores in Growth, Resilience, and Momentum, MS&AD Insurance shows positive signs for sustained success in the long term. Investors may find the company appealing for its solid value proposition and consistent dividend payouts. With a diversified portfolio of insurance products and financial services, the company has built a strong foundation for future growth and resilience in the face of market challenges, positioning it as a notable player in the insurance industry.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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