SBI Insurance Group Co., Ltd. (7326) AI Stock Analysis

• Market Cap: ¥52.97B
• Dividend Yield: 1.1%
• Average Volume (3M): 59.07K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.86
• Revenue Growth: 13.99%
• EPS Growth: 85.66%
• Country: JP
• Employees: 913
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 26.11
• Shares Outstanding: 24,820,530
• 10 Day Avg. Volume: 87,530
• 30 Day Avg. Volume: 59,070
• PEG Ratio: 0.38
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 3.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥2,460.00 ▲(18.78% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by improving fundamentals (strong revenue growth and solid free cash flow) tempered by thin profitability and higher leverage versus prior years. Technicals are supportive with a strong uptrend and positive momentum, while valuation is only moderate given a mid-range P/E and a modest dividend yield.

Positive Factors

Business Diversification & Digital Distribution

Operating across life and non-life lines and using digital channels and partnerships gives durable diversification of premium streams and distribution. This reduces reliance on any single product cycle, enables cross-selling, and supports lower customer acquisition costs and scalable growth over months to years.

Accelerating Revenue Growth

A ~34% YoY revenue uplift in FY2025 signals sustainable top-line momentum, expanding the in-force book and scale. Higher premium volume improves capacity to absorb fixed costs, funds reserve strengthening and product investment, and creates a larger base for improving underwriting economics over the medium term.

Strong Cash Generation

Operating and free cash flow near net income indicates earnings are largely cash-backed. Reliable cash generation supports reserve funding, reinvestment in distribution or tech, and the ability to service higher leverage, making the business more resilient and better able to execute multi-month strategic initiatives.

Negative Factors

Thin Profitability

Very low operating and net margins leave limited buffer against underwriting volatility or adverse loss experience. Small deterioration in claims, expense ratios, or investment returns can materially compress earnings, constraining retained earnings and reducing long-term ability to improve returns without structural margin expansion.

Rising Leverage

A meaningful step-up in debt from near-zero to ~0.41 D/E reduces financial flexibility and raises servicing and refinancing risk. With insurance results sensitive to claims and market rates, higher leverage tightens covenants and worsens cash-flow-to-debt coverage, increasing vulnerability to adverse shocks over the medium term.

Moderate Returns on Equity

ROE around 4.7% indicates modest capital efficiency for an insurance group. Such moderate returns limit the company’s ability to generate attractive shareholder value without higher margins or investment returns. Improving ROE will require durable underwriting gains or better investment income.

SBI Insurance Group Co., Ltd. Business Overview & Revenue Model

Company Description

SBI Insurance Group Co., Ltd. provides various insurance products in Japan. It offers property/casualty, life, and small short term insurance products. The company was incorporated in 2016 and is based in Tokyo, Japan. SBI Insurance Group Co., Ltd. operates as a subsidiary of SBI Holdings, Inc.

How the Company Makes Money

The company makes money primarily through the earnings of its consolidated insurance subsidiaries and related service operations. Key revenue and profit drivers include: (1) Insurance underwriting results: subsidiaries collect premiums for life and non-life policies, then pay claims and policy benefits; profitability depends on pricing/underwriting discipline, claims experience, expense ratios, and reserve adequacy. In non-life lines, underwriting profit is driven by the spread between earned premiums and the sum of claims, loss adjustment expenses, commissions, and operating costs. In life insurance, earnings are influenced by the margin between premiums and expected benefits/expenses, as well as changes in actuarial assumptions and reserve movements. (2) Investment income (insurance float): premiums are invested until claims/benefits are paid; returns from investment portfolios (e.g., interest/dividends and realized/unrealized investment gains/losses) are a significant contributor to overall results, and are sensitive to market conditions and interest rates. (3) Fees and commissions: the group can earn distribution-related commissions and service fees tied to policy origination, renewals, and ancillary services, particularly where products are sold through partner channels or platforms; specific fee categories and materiality depend on subsidiary disclosures. (4) Holding-company/other income: as a holding company, it may also earn dividends from subsidiaries and, where applicable, income related to group management functions. Significant factors affecting earnings include the scale and mix of in-force policies, retention/renewal rates, catastrophe and large-loss exposure in non-life lines, regulatory capital requirements, and the performance of distribution partnerships and digital acquisition channels. Specific named partnerships, line-by-line premium breakdowns, and segment contribution details are null because they are not provided in the prompt.

SBI Insurance Group Co., Ltd. Financial Statement Overview

Summary

Strong FY2025 revenue acceleration (~34% YoY) and solid, cash-backed free cash flow (~¥7.0B; FCF ~0.96x net income). Offsetting this, profitability remains structurally thin (~1.7% net margin; ~1.8% EBIT margin) and leverage rose meaningfully (debt-to-equity ~0.41 vs near-zero historically), reducing flexibility.

Income Statement

Revenue growth accelerated materially in FY2025 (TotalRevenue up ~34% YoY after a modest FY2024), showing improving top-line momentum. Profitability is positive but thin for the period, with net margin ~1.7% in FY2025 and EBIT margin ~1.8%, and margins have not shown a clear step-up despite the revenue lift. Net income has improved versus prior years, but earnings quality remains sensitive given the consistently low margin profile.

Balance Sheet

The balance sheet shows a meaningful increase in leverage in FY2025 (debt-to-equity ~0.41 versus near-zero in prior years), which raises financial risk versus the company’s historical position. Equity remains sizable (~¥42.4B) relative to assets, and return on equity has improved to ~4.7% in FY2025 from low-single-digits previously, but overall returns are still moderate and now come with higher debt than the recent track record.

Cash Flow

Cash generation is solid and improving versus earlier years, with FY2025 operating cash flow of ~¥7.3B and free cash flow of ~¥7.0B. Free cash flow is closely aligned with net income in FY2025 (~0.96x), indicating earnings are broadly backed by cash. A key watch item is that the company’s cash-flow-to-debt coverage weakened in FY2025 (reflecting the step-up in debt), even though absolute cash flow remains healthy.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	120.80B	116.88B	107.14B	93.74B	87.00B	86.44B
Gross Profit	122.15B	121.06B	111.16B	97.63B	90.10B	89.14B
EBITDA	3.00B	4.07B	4.09B	3.85B	3.94B	3.29B
Net Income	12.80B	1.99B	1.45B	1.24B	891.00M	763.00M
Balance Sheet
Total Assets	218.83B	217.71B	210.26B	191.04B	192.11B	194.38B
Cash, Cash Equivalents and Short-Term Investments	0.00	34.33B	33.54B	33.11B	31.45B	32.81B
Total Debt	14.94B	17.57B	0.00	1.00M	2.00M	25.00M
Total Liabilities	174.47B	175.19B	170.27B	152.17B	149.04B	150.59B
Stockholders Equity	44.23B	42.41B	39.88B	38.76B	42.97B	43.70B
Cash Flow
Free Cash Flow	0.00	6.99B	5.88B	2.85B	2.59B	4.39B
Operating Cash Flow	0.00	7.29B	7.27B	4.89B	4.64B	5.95B
Investing Cash Flow	0.00	-5.42B	-9.40B	-6.42B	-5.82B	1.34B
Financing Cash Flow	0.00	-469.00M	-250.00M	0.00	1.00M	1.00M

SBI Insurance Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2071.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7326, the sentiment is Neutral. The current price of 2071 is below the 20-day moving average (MA) of 2289.10, below the 50-day MA of 2246.12, and above the 200-day MA of 1750.99, indicating a neutral trend. The MACD of -31.93 indicates Positive momentum. The RSI at 45.21 is Neutral, neither overbought nor oversold. The STOCH value of 65.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7326.

SBI Insurance Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7164	73 Outperform	¥435.32B	16.35	14.42%	4.80%	10.39%	12.77%
8715	72 Outperform	¥100.13B	-6,185.63	―	0.82%	11.18%	-16.50%
8713	71 Outperform	¥34.65B	7.00	4.94%	4.00%	10.72%	293.23%
7326	69 Neutral	¥52.97B	19.36	6.16%	1.10%	13.99%	85.66%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7157	67 Neutral	¥169.28B	22.15	―	―	20.22%	19.40%
5843	63 Neutral	¥6.87B	11.55	―	0.72%	16.04%	86.97%