Worth reading
70In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
900
¥100 million (target increase in investment-related profit and loss compared with fiscal 2025)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet income for the current fiscal year+0.1%
基準 2,025Target2,028100 million (adjusted profit)
ROE0.0pt
基準 2,025Target2,025%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planAdjusted profit of ¥97 billion, adjusted ROE of approximately 6%, at least 18.5 million in-force policies, customer satisfaction of at least 90%, and an NPS at an industry-leading level → Adjusted profit of ¥171.5 billion, adjusted ROE of 10.1%, 17.72 million in-force policies, customer satisfaction of 84%, and an NPS of negative 54.8 points (11th out of 13 companies)+76.8%Calculated from the two disclosed figures
Total investment planApproximately ¥90 billion (investment during the medium-term plan period in business growth strategies, including the use of AI and digital technologies)
Investment amount by sectorField Business growth strategies, including the use of AI and digital technologies / Amount Approximately ¥90 billion
Statements about the use of capital
Payout ratio / DOE policyThe average total payout ratio during the medium-term plan period will be approximately 55%. As a general principle, Japan Post Insurance will not reduce the dividend per share and will seek to increase it. For fiscal 2028, it aims for a dividend per share of at least ¥62, based on the achievement of the adjusted profit target of ¥190 billion. The period covered is fiscal 2026 through fiscal 2028.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyJapan Post Insurance will consider and implement flexible share repurchases in line with its ESR level. If ESR exceeds the appropriate level and no suitable investment opportunities can be found, it will reconsider further shareholder returns.
Cost of capitalReferring to the CAPM, Japan Post Insurance recognizes 7–8% as the target earnings yield on equity over the medium to long term.The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share priceJapan Post Insurance aims to narrow the gap between its recognition of its cost of capital and market valuation, and recognizes the current earnings yield on equity as approximately 9–10%. PBR: Not disclosed.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Enhance the value of in-person channels through collaboration with remote and digital channels
02Enhance and expand the appeal of insurance products
03Convenient, comprehensive services powered by AI, digital technologies and other tools
04Sustainably renew investment-related profit and loss
05Address social issues through the power of investment
06Challenge of expanding value delivered through inorganic growth and other initiatives
07Challenge of transforming the business through AI, digital technologies and other tools
08Human Capital Management
09Strengthening Governance
10Dialogue with stakeholders
11Financial and capital policies (profit generation and allocation)
Plan assumptionsThe population of Japan is expected to decline to 112 million by 2040, with the working-age population falling to approximately half of the total population (National Institute of Population and Social Security Research), Single-person households are expected to account for approximately 44% of all households in 2040 (National Institute of Population and Social Security Research), Approximately 43% of municipalities are expected to become municipalities at risk of extinction, where the population of young women will decline by at least 50% between 2020 and 2050 (Population Strategy Council), The assumed interest rate for single-premium products will be 1.75% from January 2026, and the assumed interest rate for level-premium products will be 0.9% from May 2026, Population decline, the establishment of a longevity-focused society, the increase in single-person households, population concentration in urban areas, and technological advances
Non-financial targetsIndicator Contract retention rate / Target value Maintain an industry-leading level / Timing FY2028, Indicator Number of in-force policies issued after privatization (individual insurance) / Target value At least 11.5 million policies / Timing FY2028, Indicator Total number of in-force policies (individual insurance) / Target value At least 16 million policies / Timing FY2028, Indicator Percentage of employees in customer-facing roles / Target value At least 70% / Timing Not disclosed, Indicator Back-office workload / Target value Reduction equivalent to 1,000 employees / Timing April 2029, Indicator Frontline activity hours / Target value Create a total of 2 million hours annually / Timing Not disclosed, Indicator Systems productivity / Target value Increase by 20% / Timing Not disclosed, Indicator Workload in planning and other departments / Target value Reduce by 20% / Timing Not disclosed
Size of the Target MarketThe potential for life insurance enrollment among customers with touchpoints to the Japan Post Group is approximately 15 times Japan Post Insurance’s fiscal 2025 new business results. Japan Post Insurance’s fiscal 2025 new business results were ¥97.3 billion in annualized premiums from new business. Source: proprietary research by Japan Post Insurance (July–August 2025, internet survey, N: more than 7,000).
Risks identified by the company
Risk of mass policy cancellations
Sharp decline in ESR due to a rapid rise in interest rates or other factors
Information Security Risk
Personal Information Protection
Conduct risk
Amendments to the Insurance Business Act and other regulations
| Item | Details |
|---|---|
| Plan name | Japan Post Insurance Medium-Term Management Plan (Fiscal 2026–Fiscal 2028) |
| Plan period | FY2026-FY2028 |
| Progress against the plan | Formulated |
| Net income target | ¥171.5 billion (fiscal 2025 actual, adjusted profit) → More than ¥190 billion (fiscal 2028 target, adjusted profit) |
| ROE target | Approximately 6% (fiscal 2025 target under the previous medium-term plan, adjusted ROE) → 10.1% (fiscal 2025 actual under the previous medium-term plan, adjusted ROE) |
| Payout ratio / DOE policy | The average total payout ratio during the medium-term plan period will be approximately 55%. As a general principle, Japan Post Insurance will not reduce the dividend per share and will seek to increase it. For fiscal 2028, it aims for a dividend per share of at least ¥62, based on the achievement of the adjusted profit target of ¥190 billion. The period covered is fiscal 2026 through fiscal 2028. |
| Treasury share acquisition policy | Japan Post Insurance will consider and implement flexible share repurchases in line with its ESR level. If ESR exceeds the appropriate level and no suitable investment opportunities can be found, it will reconsider further shareholder returns. |
| Cost of capital | Referring to the CAPM, Japan Post Insurance recognizes 7–8% as the target earnings yield on equity over the medium to long term. |
| Self-assessment of PBR and share price | Japan Post Insurance aims to narrow the gap between its recognition of its cost of capital and market valuation, and recognizes the current earnings yield on equity as approximately 9–10%. PBR: Not disclosed. |
| Total investment plan | Approximately ¥90 billion (investment during the medium-term plan period in business growth strategies, including the use of AI and digital technologies) |
| Investment amount by sector | Field Business growth strategies, including the use of AI and digital technologies / Amount Approximately ¥90 billion |
| Non-financial targets | Indicator Contract retention rate / Target value Maintain an industry-leading level / Timing FY2028, Indicator Number of in-force policies issued after privatization (individual insurance) / Target value At least 11.5 million policies / Timing FY2028, Indicator Total number of in-force policies (individual insurance) / Target value At least 16 million policies / Timing FY2028, Indicator Percentage of employees in customer-facing roles / Target value At least 70% / Timing Not disclosed, Indicator Back-office workload / Target value Reduction equivalent to 1,000 employees / Timing April 2029, Indicator Frontline activity hours / Target value Create a total of 2 million hours annually / Timing Not disclosed, Indicator Systems productivity / Target value Increase by 20% / Timing Not disclosed, Indicator Workload in planning and other departments / Target value Reduce by 20% / Timing Not disclosed |
| Plan assumptions | The population of Japan is expected to decline to 112 million by 2040, with the working-age population falling to approximately half of the total population (National Institute of Population and Social Security Research), Single-person households are expected to account for approximately 44% of all households in 2040 (National Institute of Population and Social Security Research), Approximately 43% of municipalities are expected to become municipalities at risk of extinction, where the population of young women will decline by at least 50% between 2020 and 2050 (Population Strategy Council), The assumed interest rate for single-premium products will be 1.75% from January 2026, and the assumed interest rate for level-premium products will be 0.9% from May 2026, Population decline, the establishment of a longevity-focused society, the increase in single-person households, population concentration in urban areas, and technological advances |
| Key initiatives | Enhance the value of in-person channels through collaboration with remote and digital channels, Enhance and expand the appeal of insurance products, Convenient, comprehensive services powered by AI, digital technologies and other tools, Sustainably renew investment-related profit and loss, Address social issues through the power of investment, Challenge of expanding value delivered through inorganic growth and other initiatives, Challenge of transforming the business through AI, digital technologies and other tools, Human Capital Management, Strengthening Governance, Dialogue with stakeholders, Financial and capital policies (profit generation and allocation) |
| Results under the previous plan | Adjusted profit of ¥97 billion, adjusted ROE of approximately 6%, at least 18.5 million in-force policies, customer satisfaction of at least 90%, and an NPS at an industry-leading level → Adjusted profit of ¥171.5 billion, adjusted ROE of 10.1%, 17.72 million in-force policies, customer satisfaction of 84%, and an NPS of negative 54.8 points (11th out of 13 companies) |
| Size of the Target Market | The potential for life insurance enrollment among customers with touchpoints to the Japan Post Group is approximately 15 times Japan Post Insurance’s fiscal 2025 new business results. Japan Post Insurance’s fiscal 2025 new business results were ¥97.3 billion in annualized premiums from new business. Source: proprietary research by Japan Post Insurance (July–August 2025, internet survey, N: more than 7,000). |
| Risks identified | Risk of mass policy cancellations, Sharp decline in ESR due to a rapid rise in interest rates or other factors, Information Security Risk, Personal Information Protection, Conduct risk, Amendments to the Insurance Business Act and other regulations |
| Publication date | 15 May 2026 |
Items this document does not state (7)
Sales TargetOperating profit targetOperating profit margin targetROIC targetSegment targetReason for revision or withdrawalDate of board resolution
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The plan was formulated as Japan Post Insurance approaches its 110th anniversary, reflecting its aspiration to remain an indispensable presence in customers’ lives and in society, grounded in the purpose for which it was founded. To respond to changes in the operating environment, including population decline, the establishment of a longevity-focused society, the increase in single-person households and technological advances, fiscal 2026 through fiscal 2028 has been positioned as a growth and challenge phase.
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