Lifenet Insurance Company · TSE:7157
Lifenet Insurance — Q3 FY2023 Earnings Presentation
20 slides from Lifenet Insurance's earnings presentation, Feb 13, 2024
Slide 1: Q3 Financial Results Briefing for the Fiscal Year Ending March 2024
LIFENET INSURANCE COMPANY Q3 Financial Results Briefing for the Fiscal Year Ending March 2024 February 13, 2024 [Speaker] Ryosuke Mori President and Representative Director
Slide 2: Presentation
Presentation Mori: Thank you very much for attending our financial results briefing today. The Company announced its financial results for Q3 of FY2023. Presentation materials are available on our IR website. I would like to provide an overview of the financial results using the presentation materia
Slide 3: Main points of the financial results presentation
Let us begin with an explanation. See page 1. These are the main points of today's financial results presentation. In conjunction with the start of financial reporting using International Financial Reporting Standards (IFRS) in FY2023, we have established three key indicators, and I will explain our
Slide 4: Customer experience update for same-sex partners
Finally, here is an initiative we are announcing today: We are updating the customer experience for same-sex partners in an attempt to improve convenience for our customers. Details of each item will be explained later. Copyright© LIFENET INSURANCE COMPANY All rights reserved. 3
Slide 5: Annualized premium of policies-in-force
Please refer to page 2. Annualized premium of policies-in-force, which correspond to annual recurring revenue, totaled JPY27,872 million as of December 31, 2023. You can see that we have continued strong growth in policies-in-force, up 18.5% from the end of the same period last year, due in part to
Slide 6: Factors in growth of policies-in-force
Page 3 shows the factors that contribute to growth of policies-in-force. The net increase in annualized premium of policies-in-force for GCL, which began this fiscal year, was JPY306 million during the quarter, maintaining a strong performance. We also believe that the net increase in annualized pre
Slide 7: IFRS income statement summary
Then see page 4. From here, we move on to an explanation of financial reporting under IFRS. First, to give you a sense of the whole picture, we have provided a summary of the IFRS- based income statement. To put it simply, insurance service results on P&L corresponds to so-called operating profit, a
Slide 8: Movements of insurance service results
See page 5. The following table shows the movements of insurance service results. First, looking at the trends over time, except for FY2022 which has a sharp increase in COVID-19 claims, insurance service results has been growing solidly and steadily. For the nine months of FY2023, insurance service
Slide 9: Factors in change of insurance service results
See page 6. This page shows the factors that contributed to the change in insurance service results from the nine months of FY2022 to the nine months of FY2023. First, see the table on the left. Insurance service results is mainly broken down into the “expected claims minus incurred claims”, “risk a
Slide 10: Results from GCL
On the other hand, “results from GCL" was minus JPY221 million, a factor pushing down the growth of insurance service results, due to the fact that more insurance claims were paid in Q3 than originally expected, although this figure does not consider reinsurance. Copyright© LIFENET INSURANCE COMPANY
Slide 11: European Embedded Value
Next, please see page 7. Moving on to an explanation of European Embedded Value. European Embedded Value is the present value of net assets, so to speak, after considering the after-tax value of unrealized future profits that the policies-in-force will generate in the future for statutory accounting
Slide 12: Analysis of changes in EEV
Page 8 is an analysis of factors contributing to changes in EEV for the nine-month period from the end of March 2023 to the end of December 2023. We define adjusted incremental EEV as the sum of the three components of the change in EEV: value of new business; expected existing business contribution
Slide 13: Main initiatives: GCL business contribution
Here is an explanation of our main initiatives. Please see page 9 of the slides. As for our main initiatives, I will first explain the strong contribution of GCL business. As part of our efforts to expand our business domain, we began offering GCL to au Jibun Bank mortgage loan borrowers in July las
Slide 14: Embedded finance and KDDI partnership
Then see page 10. With the recent announcement of a major capital and business alliance by KDDI, the trend toward building and strengthening the point ecosystem is further accelerating. In this situation, we have positioned embedded finance as a medium- to long-term growth theme and are focusing on
Slide 15: SMBC Group alliance and Insurance with V-Points
Then see page 11. Last year, the Company and its subsidiary LIFENET Mirai entered into a business alliance agreement with SMBC Group companies, Sumitomo Mitsui Financial Group and Sumitomo Mitsui Card, and also issued new shares to Sumitomo Mitsui Card through a third-party allotment. We are pleased
Slide 16: New customer experience improvement measures
Please see page 12. Here is the new customer experience improvement measures announced today. In 2015, we were the first in the industry to begin handling the extension of death benefits to same-sex partners, and we have received positive responses from sexual minority parties and their allies. When
Slide 17: Enhancing brand value
thereby enhancing the value of the LIFENET INSURANCE COMPANY brand, which in turn will lead to increased corporate value. Copyright© LIFENET INSURANCE COMPANY All rights reserved. 16
Slide 18: Consolidated business forecasts for FY2023
Page 13 shows the consolidated business forecasts for FY2023. The business forecasts remains unchanged from the upward revision of profits made at the time of the announcement of the Q1 results last August. Although we will need to pay close attention to this situation in Q4 as well, we will continu
Slide 19: Accelerating growth of in-force business
Please see page 14. Going forward, we aim to accelerate the growth of in-force business performance through both the individual life insurance business and the group credit life insurance business. In addition to achieving high profit growth of sustained 10% growth of insurance service results, we a
Slide 20: Management policy
Finally, here is the management policy. We will continue to pursue growth to expand the scale of our business while capturing the structural trend of digitization of financial services. We will then expand the online life insurance market by ourselves, and by remaining a leading company in this mark
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