TKOMF

S&P Global Ratings revised its outlook on Tokio Marine Group to positive from stable, affirming its 'A+' long-term ratings. The revision is based on the expectation that the group will further diversify its business and investment assets outside of Japan, which could lead to a ratings upgrade. S&P believes the group will maintain strong profitability and capital, supported by diversified revenue sources and advanced risk management. The positive outlook reflects a one-in-three chance that the ratings could exceed the sovereign rating on Japan.

The article analyzes Tokio Marine Holdings' valuation using an Excess Returns model. With a book value of ¥2,799.95 per share and an estimated stable EPS of ¥506.86, the model calculates an intrinsic value of ¥11,872.09 per share. This suggests a 47.4% discount to the current share price of ¥6,239, indicating the stock is undervalued. The analysis is based on the company's ability to generate profits above its cost of equity.

Tokio Marine Holdings has upgraded its profit outlook and dividend forecast for the fiscal year ending March 2026. The company aims for top-tier EPS growth through robust profit growth, a diversified underwriting portfolio, and strong asset management. It plans to divest business-related equities to reinvest in M&A and risk-taking opportunities, potentially improving margins and earnings. The article suggests the stock is undervalued, with a fair value of ¥6,828 compared to the current price of ¥6,297. Risks include execution risk in divesting equities and earnings volatility from international exposures.