Aashi Life’s net profit surged more than threefold in the first quarter of 2024, reaching $20 million. This significant rise marks a notable improvement from the $0.02 billion (¥3.5 billion) recorded in Q1 2023, bringing the annualized return on equity to 8.6%.
According to CreditSights, Aashi Life’s performance in Q1 2024 reflects both growth and financial prudence, underpinned by a strong solvency ratio and enhanced earnings. However, concerns remain about Nanairo Life, a subsidiary that, despite its growth, continues to report losses.
The company’s core profit also saw impressive growth, increasing by 23.5% compared to the previous quarter, reaching $0.09 billion (¥13.0 billion). This figure more than doubled the core profit from Q1 2023.
Consolidated core profit was buoyed by a 91.7% year-on-year (YoY) increase in standalone core profit, which amounted to $0.11 billion (¥16.1 billion).
Aashi Life’s new business saw a 5.9% uptick, totaling $0.06 billion (¥9.1 billion), driven by growth in both the standalone Aashi Life segment and its subsidiary Nanairo Life.
The company also benefited from a 16.8% increase in interest and dividend income, attributed to higher interest rates and yen depreciation.
Investment in foreign securities grew by 6.7%, with foreign bonds rising by 7.2% and foreign equity investments increasing by 5.8%.
Despite a slight dip in the solvency margin ratio from 1,036.2% to 1,021.1%, Aashi Life remains well above the 200% minimum requirement, maintaining a position comparable to larger competitors like Nippon Life and Meiji Yasuda.
(Current exchange rate: $1.00 = ¥145.55)
