Q4 FY2023 Consolidated Financial Results announced on May 15, 2024

While the number of policies in force decreased, core profit increased due to the decline in insurance claims payments for COVID-19. Although provisions for contingency reserves increased due to the aforementioned decline in insurance claims payments, etc., ordinary profit for FY2023 was ¥ 161.1 billion, a 37.1% increase year on year, owing to substantially improved capital gains.

Net income for FY2023 decreased 10.8% year on year to ¥ 87.0 billion, as capital gains, etc. were neutralized by reserve for price fluctuations.

As a result of efforts to build sales capabilities in the medium to long term, annualized premiums*1 from new policies*2 for individual insurance in FY2023 increased by 77.3% year on year to ¥ 116.8 billion.

Annualized premiums from policies in force*3 for individual insurance in FY2023 decreased by 7.2% from the end of the previous fiscal year to ¥ 2,987.3 billion.

The number of new policies in FY2023 increased by 100.1% year on year.

• “Annualized premiums” are the amount of insurance premiums adjusted according to differences in payment method (monthly, yearly, etc.), and converted to one year (12 months). Annualized premiums from new policies and policies in force are indicators that show the size of sales of life insurance companies as with the amount of insurance premiums and others.
• New policies include net increase by conversion.
• Includes reinsured Postal Life Insurance Policies received from the Organization for Postal Savings, Postal Life Insurance and Post Office Network (limited to insurance from Postal Life Insurance Policies).

EV* for FY2023 increased by 14.5% from the end of the previous fiscal year to ¥ 3,965.0 billion mainly due to an increase in unrealized gains of domestic stocks holdings resulting from an increase in the market value of domestic stocks, etc.

• EV is an abbreviation for Embedded Value, and one of the corporate value indicators for life insurance companies.
  The profit-loss structure in the life insurance business involves a loss at the time of sale and profit over a policy’s duration. A loss occurs temporarily at the time of sale, caused by a considerable amount of expenses generally incurred with the sale of a policy. Future profit is generated as the policy’s long duration serves to provide revenues over a long period of time, covering these initial expenses.
  Under the current statutory accounting practices in Japan, gains and losses are recognized as they occur in each fiscal year. EV, on the other hand, is used to represent the present value of gains and losses that cover the entire duration. EV is the sum of the adjusted net worth, which reflects gains/losses from business activities in the past, and the value of in-force covered business, which is the present value of the expected future profits from the in-force covered business.
• With regard to methodology and assumptions for the calculation of EV (Embedded Value) and value of new business, please refer to disclosure document for EV or Conference Call Material for each period.

For details, please check the latest ‘Conference Call Material’

FY2024 Consolidated Financial Results Forecast announced on May 15, 2024

Net income for FY2024 is expected to decrease from the end of the previous fiscal year, mainly due to a decrease in the number of policies in force and an increase in burden of regular policy reserves related to sale of lump-sum payment whole life insurance policies.
In order to partially adjust for the effect unique to life insurance companies whose net income is reduced in the short term as new policies increase, from FY2024 we introduce “adjusted profit” taking into account the adjustment for the increased burden of regular policy reserves after tax in the first year of new policies.
And adjusted profit is expected to amount to approximately ¥ 91.0 billion.

(Billions of yen)

• The figures reflect the financial results forecast revision announced on March 22, 2024.

[Definition of adjusted profit (to be introduced from FY2024)]

• Please check the latest IR news for timely disclosure of any revisions to the financial results forecast.