Sompo Holdings (8630) Earnings Call Presentation

Acquisition Highlights - Sompo Holdings will acquire Aspen Insurance Holdings for $3.48 billion (approximately ¥519.5 billion, equivalent to 1.3x PBR)[7, 30] - The acquisition is expected to be completed between January and June 2026, subject to regulatory approval[7] - The acquisition is projected to reduce operating expenses by $200 million by FY2030[9, 12] Strategic Significance - The acquisition expands Sompo's overseas insurance/reinsurance business, making it a top 10 global reinsurance company[7] - Aspen Capital Markets (ACM) will expand fee income with low capital requirements, reducing profit volatility and improving balance sheet flexibility[7, 31, 54] - Gross written premiums in insurance are expected to increase by approximately 20%, from $12.0 billion to $14.7 billion[49] - Gross written premiums in reinsurance are expected to increase by approximately 40%, from $4.5 billion to $6.4 billion[49] Financial Impact - The acquisition is expected to improve the likelihood of achieving mid-term targets for FY2026, including ROE and EPS growth[8, 14] - Adjusted consolidated ROE is expected to increase by approximately 1 percentage point due to the acquisition[15] - Adjusted EPS growth is projected to increase, with a CAGR of +18%[6, 15] - ACM adds approximately $170 million in fee income in 2024[54]