MS&AD Insurance Group Holdings (8725) AI Stock Analysis

• Market Cap: ¥5.46T
• Dividend Yield: 2.63%
• Average Volume (3M): 3.86M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.37
• Revenue Growth: 23.01%
• EPS Growth: 2.59%
• Country: JP
• Employees: 38,391
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 179.55
• Shares Outstanding: 1,492,551,800
• 10 Day Avg. Volume: 3,912,120
• 30 Day Avg. Volume: 3,855,210
• PEG Ratio: 0.08
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 7.88
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥3,621.00 ▼(-2.58% Downside)

The stock's overall score is driven by strong financial performance and attractive valuation, despite technical indicators suggesting potential short-term weakness. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Strong Profitability

The significant improvement in net profit margin indicates efficient cost management and strong profitability, enhancing long-term financial health.

Stable Balance Sheet

A low debt-to-equity ratio reflects conservative leverage, providing financial stability and flexibility for future growth opportunities.

Efficient Cash Conversion

Efficient cash conversion indicates strong cash generation relative to net income, supporting sustainable operations and potential for reinvestment.

Negative Factors

Revenue Growth Decline

A decline in revenue growth poses a challenge to maintaining top-line expansion, potentially impacting long-term market competitiveness.

Cash Flow Volatility

Volatile cash flows can lead to uncertainty in funding operations and investments, affecting financial stability and strategic planning.

Growth Opportunities

While low debt is beneficial, reduced leverage might limit the company's ability to capitalize on growth opportunities, affecting future expansion.

MS&AD Insurance Group Holdings Business Overview & Revenue Model

Company Description

MS&AD Insurance Group Holdings, Inc., an insurance holding company, provides insurance and financial services worldwide. The company offers fire and allied, marine, personal accident, voluntary automobile, compulsory automobile liability, and others non-life insurance products; life insurance products; and reinsurance services. It also provides risk-related services. The company was formerly known as Mitsui Sumitomo Insurance Group Holdings, Inc. and changed its name to MS&AD Insurance Group Holdings, Inc. in April 2010. MS&AD Insurance Group Holdings, Inc. was founded in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

MS&AD Insurance Group Holdings generates revenue primarily through its insurance underwriting activities, which involve collecting premiums from policyholders in exchange for coverage against potential risks. The company earns most of its income from property and casualty insurance, where it assesses risks and sets premium rates accordingly. In addition to underwriting income, MS&AD benefits from investment income derived from the premiums collected, as these funds are typically invested in various financial instruments to generate returns. The company also earns fees from its asset management services. Significant partnerships with global reinsurance firms enhance its risk management capabilities and provide additional revenue streams through reinsurance arrangements. Additionally, macroeconomic factors such as interest rates and market performance can influence the company's investment income, further impacting its overall earnings.

MS&AD Insurance Group Holdings Financial Statement Overview

Summary

MS&AD Insurance Group Holdings demonstrates strong profitability with improved net profit margins and a stable balance sheet with conservative leverage. However, the decline in revenue growth and historical cash flow volatility present potential risks.

Income Statement

The company shows strong profitability with a consistent gross profit margin of 100% and a significant improvement in net profit margin from 5.63% to 10.75% over the last year. However, the revenue growth rate has declined by 5.11% in the most recent year, indicating a potential challenge in maintaining top-line growth. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.15, indicating conservative leverage. Return on equity has improved significantly to 17.29%, showcasing effective use of equity. The equity ratio is strong, suggesting a solid financial foundation. However, the total debt has decreased, which could impact future growth opportunities if not managed carefully.

Cash Flow

The company has shown a remarkable improvement in free cash flow growth, although the previous year had a negative free cash flow. The operating cash flow to net income ratio is stable, indicating consistent cash generation relative to net income. The free cash flow to net income ratio is high, reflecting efficient cash conversion, but past volatility in cash flows suggests potential risks.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.45T	6.35T	6.34T	5.06T	5.01T	4.82T
Gross Profit	6.45T	5.46T	5.49T	4.28T	4.28T	4.09T
EBITDA	946.16B	1.04T	593.74B	413.98B	482.62B	300.39B
Net Income	710.17B	691.66B	369.27B	211.01B	262.80B	144.40B
Balance Sheet
Total Assets	26.33T	26.24T	26.96T	24.35T	25.03T	24.14T
Cash, Cash Equivalents and Short-Term Investments	0.00	2.14T	2.91T	2.77T	2.36T	2.06T
Total Debt	590.32B	590.57B	715.04B	714.74B	782.90B	809.09B
Total Liabilities	22.20T	22.19T	22.45T	21.21T	21.73T	21.02T
Stockholders Equity	4.08T	4.00T	4.47T	3.09T	3.26T	3.09T
Cash Flow
Free Cash Flow	0.00	634.99B	526.59B	169.53B	208.58B	-357.61B
Operating Cash Flow	0.00	660.19B	549.47B	194.15B	236.71B	-323.91B
Investing Cash Flow	0.00	-360.92B	-178.37B	453.78B	148.95B	-128.82B
Financing Cash Flow	0.00	-659.40B	-227.16B	-312.03B	58.55B	79.28B

MS&AD Insurance Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3717.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8725, the sentiment is Positive. The current price of 3717 is above the 20-day moving average (MA) of 3473.80, above the 50-day MA of 3354.54, and above the 200-day MA of 3228.07, indicating a bullish trend. The MACD of 85.94 indicates Negative momentum. The RSI at 72.45 is Negative, neither overbought nor oversold. The STOCH value of 80.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8725.

MS&AD Insurance Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8630	76 Outperform	¥4.80T	20.72	―	2.90%	11.37%	27.90%
7181	72 Outperform	¥1.59T	10.76	―	2.58%	-21.38%	58.05%
8725	69 Neutral	¥5.46T	7.74	16.44%	2.63%	23.01%	2.59%
8750	69 Neutral	¥4.69T	11.52	10.61%	3.37%	-8.02%	5.21%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8766	66 Neutral	¥10.97T	10.53	19.96%	3.41%	-2.10%	-8.76%
8795	61 Neutral	¥1.79T	13.91	8.83%	2.92%	-1.96%	10.32%

MS&AD Insurance Group Holdings Corporate Events

MS&AD Insurance Group Initiates Share Buyback Program

MS&AD Insurance Group Holdings has announced the purchase of 1,917,400 of its own shares for approximately JPY 6.62 billion between November 20 and November 30, 2025. This move is part of a larger stock repurchase plan, aiming to buy back up to 75 million shares, representing about 5% of its outstanding shares, with a maximum budget of JPY 135 billion, scheduled to continue until March 24, 2026.

MS&AD Insurance Group Expands Asset Management with New U.S. Subsidiary

MS&AD Insurance Group Holdings has announced the establishment of a new sub-subsidiary, MSIG MB Management LLC, in the United States to strengthen its asset management capabilities by acquiring an equity interest in Barings LLC. This strategic move is aimed at enhancing the company’s enterprise value and establishing a governance structure for managing foreign currency-denominated assets, with minimal expected impact on financial results.

MS&AD Insurance Group Announces Treasury Stock Cancellation

MS&AD Insurance Group Holdings has announced the cancellation of 115,846,976 shares of its treasury stock, which represents 7.2% of its issued shares. This strategic move, scheduled for completion on November 28, 2025, aims to optimize the company’s capital structure and potentially enhance shareholder value.

MS&AD Insurance Group Announces Share Repurchase Plan

MS&AD Insurance Group Holdings has announced a plan to repurchase up to 75 million shares, equivalent to approximately 5% of its outstanding shares, with a maximum consideration of JPY 135 billion. This decision is part of the company’s strategy to enhance shareholder returns and improve capital efficiency, reflecting an upward revision in the annual forecast of Group Adjusted Profit for fiscal year 2025.

MS&AD Insurance Group Reports Stable Six-Month Financial Results

MS&AD Insurance Group Holdings reported its business results for the six months ended September 30, 2025, highlighting the performance of its domestic and overseas insurance subsidiaries. The results indicate a stable financial performance across its main subsidiaries, with a focus on maintaining strong market positioning and operational efficiency. The announcement underscores the company’s strategic emphasis on consolidating its domestic market presence while expanding its international footprint.

MS&AD Insurance Reports Strong Interim Results, Revises Full-Year Forecasts

MS&AD Insurance Group Holdings announced its consolidated financial results for the six months ended September 30, 2025, showing a significant increase in ordinary income and net income attributable to owners of the parent compared to the previous year. The company also revised its earnings forecasts for the fiscal year ending March 31, 2026, indicating a decrease in ordinary profit and net income, which reflects the challenges posed by market conditions and natural disasters.

MS&AD Completes Share Buyback as Part of Strategic Initiative

MS&AD Insurance Group Holdings has completed the purchase of its own shares, acquiring 3,124,200 shares for JPY 10,380,903,000 between October 1 and October 22, 2025. This move is part of a broader strategy authorized by the Board of Directors to buy back up to 50 million shares by December 2025, aiming to enhance shareholder value and optimize capital structure.

MS&AD Insurance Group’s Strategic Share Buyback

MS&AD Insurance Group Holdings announced the purchase of 3,121,300 shares of its own common stock for JPY 10,873,286,100 during September 2025. This move is part of a broader strategy approved by the Board of Directors to buy back up to 50 million shares, aiming to enhance shareholder value and optimize capital structure.

MS&AD Insurance Group Announces Major Merger and Rebranding

MS&AD Insurance Group Holdings announced a significant merger between its core companies, Mitsui Sumitomo Insurance Co., Ltd. and Aioi Nissay Dowa Insurance Co., Ltd., resulting in a new entity named Mitsui Sumitomo Aioi Insurance Company, Limited, effective April 1, 2027. This strategic move aims to unify the brand, strengthen group management, and position the company as a leading insurance and financial group, enhancing its ability to address social risks and provide optimal security and solutions globally.