T&D: Bond losses top ¥2tn as 2027 forecast stays unchanged
T&D reported ¥2.0083 trillion in unrealized bond losses at Sept. 30, 2026, but said falling insurance-liability values offset the impact. It kept its full-year forecast unchanged.
Key facts
- Total loss
- ¥2.0083 trillion
- Net balance
- ¥2.0079 trillion loss
- As of
- Sept. 30, 2026
- Full-year forecast
- Unchanged from May 2026 announcement
Bond market values fall below book values
Unrealized losses on the covered bonds totaled ¥2.0083 trillion at the end of the second quarter of the fiscal year ending March 2027. The securities are held-to-maturity bonds and policy-reserve-matching bonds. Book and market values are shown below, rounded to the nearest ¥100 million.
| Category | Book value (¥100m) | Market value (¥100m) | Unrealized loss (¥100m) |
|---|---|---|---|
| Held-to-maturity bonds | 7,233 | 5,793 | 1,440 |
| Policy-reserve-matching bonds | 62,802 | 44,159 | 18,643 |
| Total | 70,035 | 49,952 | 20,083 |
Unrealized gains were ¥400 million, leaving a net loss of ¥2.0079 trillion after they were deducted from the losses. The total unrealized loss was equivalent to 780.9% of consolidated recurring profit and 1,445.1% of net income attributable to owners of the parent for the fiscal year ended March 2026.
T&D cites offset from insurance liabilities, keeps forecast unchanged
T&D said the size of the unrealized losses would not directly affect its financial soundness. It also left unchanged its full-year consolidated forecast for the fiscal year ending March 2027, announced on May 15, 2026.
- Purpose of holdings: The bonds are held as assets backing insurance liabilities.
- Effect of rising interest rates: Higher rates reduce the market value of bonds, but also lower the economic value of the corresponding insurance liabilities, offsetting the effects.
- Future disclosures: T&D said it would promptly announce any matters requiring disclosure, including those related to its earnings forecast.
The company’s explanation that the bond losses are offset by insurance liabilities is central to assessing their significance. The loss figure alone does not show the impact on financial health: the relationship between assets and liabilities also needs to be considered.
Share price around the disclosure
Close on disclosure (Oct 30, 2026)
¥4,868
Latest close (Oct 30, 2026)
¥4,868
Reference chart of daily closing prices, not real-time quotes (split-adjusted; weekly closes before the last year). Updated Oct 30, 2026.
Compare T&D with its rivals
Pay, results and share price side by sideThe Insurance industry now
6 companiesT&D is one of 6 Insurance companies we cover, #3 by revenue. Here is how the industry’s shares and company plans look:
- Industry shares, 1 year
- +21.3%All industries +14.9%
- Op. profit plan, this FY
- +3.4%All industries +13.0%
- Forecasts raised
- 1cut 0
- Industry op. margin
- 4.7%
- T&D+46.6%
- Insurance (average)+21.3%
- All industries+14.9%
- Latest resultsYear to date through Q1, 2 companies combined: revenue +10.5% year over year. 1 are ahead of an even pace toward their full-year plan, 0 behind.
- Revisions1 raised and 0 cut this year's forecast. The biggest revision: Sony Financial (operating profit +261.1%).
Tags#T&D#Unrealized losses#Bonds#Insurance#Interest rates#Earnings forecast#Insurance liabilities#Japan stocks
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Unrealized losses exceeded ¥2 trillion, but T&D said the bonds back insurance liabilities, whose economic value declines as interest rates rise, offsetting the asset-side impact. The disclosed loss should therefore be assessed alongside the matching liabilities, rather than treated on its own as evidence of financial deterioration. The full-year forecast remains unchanged, while interest-rate movements and any further company disclosures will be worth watching.
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