Addressing social challenges to enhance corporate value
Waves of accelerating change are impacting the modern world. I believe each is a reason why companies must transform their business models from the status quo to deal with a broad range of societal issues. Chief among them are declining birthrates amid aging populations, climate change, rising geopolitical risks, and rapid advancements in digital technology, all occurring amid shifting consumer values and behaviors.
Understanding these societal shifts and responding with agility and innovation is key for companies’ future growth. We at the Sompo Group are far from complacent and have built robust foundations through strategic mergers, alliances, and acquisitions over our 136-year history. To continue to adapt to the rapidly changing external environment, we are committed to building on these foundations and experience and pursuing growth under the themes of “increasing resilience” as a business and “connect and be connected” among our businesses and services and with our customers. These efforts aim not just to solve today’s challenges but to elevate our corporate value for the long term.
The Sompo Group has embarked on a bold growth story, with our domestic and overseas P&C insurance businesses and our wellbeing services at the core of this ambition. We are already making steady progress with a market capitalization of approximately 3.8 trillion yen as of November 2024 and adjusted consolidated profits forecasted to reach 270 billion yen in fiscal 2024. The initial targets when we started fiscal year 2024 were a market capitalization of 3 trillion yen and adjusted consolidated profits of 255 billion yen, but our goal remains clear: to double these figures by fiscal year 2030.
Cementing our presence in P&C insurance
In Japan, we are addressing the dual challenges of a shrinking market and shifting customer needs. We are working to deepen our connections with our customers and with society, building on that trust to reform the earnings structure and operating foundations of our domestic P&C business, aiming to revitalize Sompo Japan into a brand that exemplifies both uniqueness and resilience.
Our overseas P&C insurance business outside Japan is a key source of our profitability, as we continue to expand our global reach and strengthen our presence in the United States, Canada, Europe, and Singapore.
Through the collaboration between operations in Japan and overseas, we expect to further enhance the financial resilience of our P&C insurance business. To ensure a cohesive and high-performing insurance network, we are fostering a Center of Excellence approach. This allows for best practices to be shared across our operations throughout the global network to respond flexibly and quickly to customers’ challenges.
The road to customer wellbeing
Our wellbeing business is built around the idea “to connect and be connected.” By connecting businesses, products, and services of the Sompo Group, as well as being connected with customers and data, we can maximize the value that we provide for customer wellbeing. This strategy focuses on addressing what we call the ‘three concerns’ of health, nursing care, and retirement finances that come as a result of the declining birthrate and aging population.
A key initiative is our expanded Insurhealth offerings—a unique blend of insurance and health services. We are also developing a wellbeing data platform in collaboration with RIZAP Group, a Japanese company that provides fitness and lifestyle services. These efforts aim to extend the healthy life expectancy of our customers while enhancing customer life time value (LTV), which eventually contributes back into the Sompo Group’s sustainable growth.
As the Sompo Group evolves into a Japanese-born, truly global company, our ambition remains clear: to meet our global customers’ changing needs with optimal solutions that create lasting impact.
