Lifenet Insurance Company · TSE:7157
Lifenet Insurance — FY2024 Earnings Presentation
56 slides from Lifenet Insurance's earnings presentation, May 14, 2025
Slide 1: Presentation Material for Fiscal 2024
Securities Code: 7157 TSE Growth Presentation Material for Fiscal 2024 May 14, 2025
Slide 2: Executive Summary
Executive Summary Results for FY2024 ◼ Annualized premium of policies-in-force up 20.1% YoY, insurance service results up 16.5%, growing strongly ◼ Comprehensive Equity (CE) steadily growing despite market factors and tax changes Future Initiatives ◼ Reaccelerating investment for growth in FY2025 af
Slide 3: Table of Contents
Table of Contents １. Financial Results for Fiscal 2024 ２. Future Initiatives ３. Improvement of Market Evaluation 2
Slide 4: Fiscal 2024 Key Highlights
Fiscal 2024 Key Highlights Key Indicators Corporate Value Growth Profitability Comprehensive Equity1 Annualized premium2 Insurance service (CE) of policies-in-force results ¥ 167,090mn ¥ 34,518mn ¥ 9,576mn (YoY 104.6%) (YoY 120.1%) (YoY 116.5%) Notable Achievements ◼ Attracting younger customers thr
Slide 5: Annualized Premium of Policies-in-Force
Annualized Premium of Policies-in-Force ◼ Resulted in ¥34,518mn and achieved significant growth of 20.1% YoY YoY :AP1 of policies-in-force for GCL2 (JPY millions) :AP1 of policies-in-force for individual life (JPY millions) ¥ 34,518mn ＋20.1％ Group credit 28,750 7,640 life insurance 3,326 Individual
Slide 6: Policies-in-Force Movement
Policies-in-Force Movement ◼ Individual life significantly improved QoQ ◼ GCL continued positive momentum, accelerating quarterly growth :Net increase of AP of policies-in-force for GCL (JPY millions) :Net increase of AP of policies-in-force for individual life (JPY millions) Net increase of Premium
Slide 7: Summary IFRS P/L
Summary IFRS P/L ◼ Insurance service results and net income resulted in ¥9,576mn and ¥5,993mn, respectively ◼ Net income would exceed the forecast of ¥6,200mn, excluding the ¥612mn temporal impact from special defense corporation tax (JPY millions) Items FY2023 FY2024 Change Insurance service result
Slide 8: Insurance Service Results
Insurance Service Results1 ◼ Substantially grew 16.5% YoY, surpassing the forecast Business forecast 8,900 vs. forecast : Insurance service results (fiscal year, JPY millions) ￥9,576ｍn 2 107.6％ 2 8,222 7,216 2 6,606 6,618 YoY ＋16.5％ 2020 2021 2022 2023 2024 (fiscal year) 1. Figures for FY2021 and ea
Slide 9: Insurance Service Results Analysis
Insurance Service Results Analysis ◼ Achieved strong growth by GCL results and CSM release Insurance service results (JPY millions) 9,576 Insurance Items FY2023 FY2024 Change service results Results from CSM release GCL Expected claims minus incurred 8,222 383 claims 784 191 (592) 2,242 Expected Ris
Slide 10: Management Indicator “Comprehensive Equity”
Management Indicator “Comprehensive Equity” ◼ Having changed our management indicator from EEV to “Comprehensive Equity” based on IFRS, aim to achieve ¥200-240bn in FY2028 European Embedded Value（EEV） Comprehensive Equity (CE) Conceptually similar GCL contracts value1 CSM2 （after-tax） Value of in-fo
Slide 11: Movement of Management Indicators
Movement of Management Indicators ◼ Strongly growing at a CAGR of 18% since IPO Comprehensive European Embedded Value（EEV）1 Equity (CE) ¥2,080 ¥1,991 ¥1,788 167,090 : EEV (JPY millions) 13,840 6,709 : GCL contracts value (JPY millions) : CSM after tax (JPY millions) : IFRS Equity (JPY millions) 62,2
Slide 12: Changing Factors of Comprehensive Equity (CE)
Changing Factors of Comprehensive Equity (CE) ◼ Increased due to GCL contracts value and net income ◼ Valuation losses from high interest rates reduced OCI, but expected to be recovered in the long term Management efforts Others : GCL movement（JPY millions）1 174,353 : CSM movement（JPY millions）1 Net
Slide 13: Individual Insurance Key Results
Individual Insurance Key Results Rebranding Tech & Services Embedded ◼ Expanded customer base through youth market development and partnership strategies, leveraging No.1 online position Direct Business Partner Business • Promoted sales initiatives targeting the young with • Significantly expanded o
Slide 14: GCL Key Results
GCL Key Results Rebranding Tech & Services Embedded ◼ Started offering GCL for joint mortgage with au Jibun Bank ◼ Following the revision of premium rate in July 2024, the key indicators achieved strong growth (JPY millions) AP of policies-in-force GCL Results GCL contract value 7,640 13,840 YoY Sig
Slide 15: Initiatives for Human Resources Strategy
Initiatives for Human Resources Strategy ◼ Aim to enhance mid- to long-term corporate value based on human resources strategy Human Resources Strategy Initiatives Achievements (the mid-term business plan) ⚫ Promote organizational transition to focus on priority areas Assigned executive Increased dri
Slide 16: Progress toward FY2028 Goals (FY2024)
Progress toward FY2028 Goals (FY2024) FY2023 FY2024 FY2028 Results Results Goals Management Goal Increase in Comprehensive Equity ¥159bn ¥167bn ¥200-240bn corporate value Financial Targets Annual growth rate of CE per share 3.8％ 4.5％ approx.10% Stock price ¥1,5121 ¥1,7421 ¥3,000+ Non-financial Targe
Slide 17: Table of Contents
Table of Contents １. Financial Results for Fiscal 2024 ２. Future Initiatives ３. Improvement of Market Evaluation 16
Slide 18: Our Business Environment
Our Business Environment ◼ External environment changes will be a major tailwind for business growth Expansion of online life Younger generation × Trend of financial １ insurance market 2 technologies 3 ecosystem • COVID-19 accelerated online • Emerging new technologies • High interest in online insu
Slide 19: Priority Areas for Further Growth
Priority Areas for Further Growth ◼ Three priority areas to move toward the next stage of growth Rebranding Embedded Qualitative changes in Business enhancement Internet direct business with partners Direct Tech & Services Partner GCL Refinement of value provided Partner GCL Direct 18
Slide 20: Online Life Insurance Growth Loop
Online Life Insurance Growth Loop ◼ Aim for virtuous cycle of No.1 position and partner expansion with tech-driven and best-in-class services Rebranding Partnership Embedded opportunities Embedding our services into Strengthening No.1 position partners’ ecosystem in online life insurance Self- Bank
Slide 21: Challenges to Lead the AI Era
Challenges to Lead the AI Era Rebranding Tech & Services Embedded ◼ Create new customer value leveraging cutting-edge technology to maximize the potential of online life insurance AI voice tech Individual number1×AI AI-powered search Enhancing customer Revolutionizing UX by fusing Seizing AI-powered
Slide 22: Advancing Partner Business
Advancing Partner Business Rebranding Tech & Services Embedded ◼ Further embedding our products and services with partners by fully leveraging their customer base Individual Life Group Credit Life • Leveraging SMBC Group and KDDI Group as key partners to • Supporting au Jibun Bank in enhancing the c
Slide 23: Direction of Marketing Investment for FY2025
Direction of Marketing Investment for FY2025 ◼ Aiming for reboosting in individual life’s performance through the first 市場規模および proactive investment in 3 years under new management 当社の業績が拡大team Insurance acquisition cash flows (JPY millions) Shifting Gears for a Growth Surge Reaccelerating Investmen
Slide 24: Consolidated Business Forecasts for FY2025
Consolidated Business Forecasts for FY2025 ◼ Expect ¥9.8bn in insurance service results and ¥6.9bn in net income Growth Profitability AP of policies-in-force Insurance service results (JPY millions) Business forecasts (JPY millions) Business forecasts GCL approx. 1,400 37,500 9,800 Individual approx
Slide 25: Table of Contents
Table of Contents １. Financial Results for Fiscal 2024 ２. Future Initiatives ３. Improvement of Market Evaluation 24
Slide 26: Current Market Evaluation
Current Market Evaluation ◼ Market evaluation has room for improvement while our corporate value has been growing CE per Share1 Stock Price2 Price/CE per Share1 2,080 2.00 1,991 1株当たりEEV・CE CE/share (JPY) CE (JPY millions) EEV 1,788 CE 1,673 167,090 1,570 159,802 1,430 ¥ 1,742 1,239 124,666 116,604
Slide 27: Major Initiatives to Improve Market Evaluation
Major Initiatives to Improve Market Evaluation ◼ Implementing various initiatives to achieve a P/CE ratio exceeding 1x Commit to Adopt corporate value shareholder value indicators linked to IFRS • Commit to stock price target • Changed indicator from "EV" to IFRS- • Introduced stock based "CE" compe
Slide 28: Valuable Risk Take on Economic Base
Valuable Risk Take on Economic Base ◼ Internal ESR1 364%, sufficient capital against potential risks ◼ Good financial soundness and high growth for the corporate value create business model with high risk-return efficiency Risk mgmt. and corp. Good financial High impact value enhancement soundness g
Slide 29: New Management Team
New Management Team1 ◼ Change the management team to focus on further business growth, looking ahead a new growth phase ◼ Maintaining a board with a majority of independent outside directors New New Junpei Yokozawa Takeshi Kawasaki President and Director, Executive Vice Representative Director Presi
Slide 30: FY2024-2028 Mid-term Business Plan
FY2024-2028 Mid-term Business Plan Growth Strategy Goals in Fiscal 2028 Priority Areas Management Goal Comprehensive Equity (CE) : ¥200-240bn Rebranding Embedded Financial Targets 中期計画 Stock price：¥3,000+ Annual growth rate of CE per share： Tech & Services approx. 10% Non-financial Targets (Human ca
Slide 31: Achieving Mid-term Business Plan ¥200-240bn
Achieving Mid-term Business Plan ◼ Aim to achieve Comprehensive Equity of ¥200-240bn in FY2028 by realizing sustainable growth through investment in priority areas Fiscal 2025 ¥200-240bn CE growth image Aim for TSE Prime Market Goals in Fiscal 2028 Stock price 167 159 1241 133 ¥3,000+ Annual growth
Slide 32: LIFENET Manifesto
LIFENET Manifesto Sincere, Easy-to-understand, Affordable and Convenient I. Our Guiding Principles II. Making Life Insurance Accessible Again - Headache-free (1) Creating the future of the life insurance without losing sight of its original (1) Helping the customers help themselves. By making our ma
Slide 33: https://ir.lifenet-seimei.co.jp/en/
All information on this document that is not historical fact constitutes forward-looking information and is based on assumptions and forecasts available to the company at the time of preparation. The company cannot guarantee the accuracy of these assumptions and forecasts. Earnings projections and o
Slide 34: Appendix
Appendix
Slide 35: Impact on CE by Rising Interest Rates
Impact on CE by Rising Interest Rates ◼ Due to product characteristics, future revenue surpasses expenditures in insurance CF’s, positive on CE as contract value ◼ CE would be decreased through valuation losses with rising interest rates but the impact would be limited Insurance CF’s Contract value
Slide 36: ESR（Internal Model）
ESR（Internal Model） ◼ In addition to the responses to statutory accounting and capital funding for the business growth, low market risk nature from protection type focused strategy contributes to high level of ESR • A concept close to CE in that it Eligible includes future profits of existing capita
Slide 37: Composition Ratios of Required Capital (Regulatory Base)
Composition Ratios of Required Capital (Regulatory Base) 1 ◼ Due to our focus on protection products, insurance risk constitutes majority of the risk profile Lifenet Industry average2 Other risk 4% Other risk 11% Market risk Insurance Credit risk risk 13% 34% Market risk Insurance risk Credit risk 7
Slide 38: Glossary 1
Glossary 1 Glossary Explanation Revenue accrued for fulfillment of insurance services. Mainly, expected claims, expected maintenance expenses, risk Insurance revenue adjustment release, CSM release and recovery of insurance acquisition cash flows. Investment components which will be paid regardless
Slide 39: Glossary 2
Glossary 2 Glossary Explanation An indicator defined by the Group. It is the sum of “Equity (attributable to owners of the Company)” on the IFRS balance sheets, “CSM”, a liability representing unearned profit that the Group expects to earn as it provides insurance services Comprehensive Equity (insu
Slide 40: Breakdown of Policies-in-Force
Individual life Breakdown of Policies-in-Force Component 2024/03 2025/03 ratio Number of policies-in-force 600,945 637,417 100% - Term Life 293,384 309,489 49% - Whole-life Medical & Term Medical 164,207 174,797 27% - Long-term Disability 69,670 71,947 11% - Cancer 66,617 74,126 12% - Others1 7,067
Slide 41: Annualized Premium / Number of New Business
Individual life Annualized Premium / Number of New Business :AP1 of new business (JPY millions) :Number of new business 1,166 1,123 1,137 1,104 1,051 991 981 969 934 933 923 889 820 808 747 734 675 689 681 639 29,864 28,136 27,553 26,918 26,167 23,369 22,164 22,506 24,410 23,928 22,612 22,128 20,934
Slide 42: Surrender and Lapse Ratio
Individual life Surrender and Lapse Ratio :Surrender and lapse ratio1（%） 7.6% 7.1% 6.9% 6.8% 6.6% 6.6% 6.4% 6.4% 6.4% 6.3% 6.3% 6.3% 6.0% 6.1% 5.5% 5.9% 5.5% 5.5% 5.6% 5.4% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2020年度 FY2020 2021年度 FY2021 2022年度 FY2022 FY2023 2023年度 FY2024 2024
Slide 43: Insurance Acquisition Cash Flows (IACF) Efficiency
Individual life Insurance Acquisition Cash Flows (IACF) Efficiency :Insurance acquisition cash flows / AP of new business :Insurance acquisition cash flows per new business (JPY thousands) Fiscal year1 Quarter 133 150 131 138 137 129 118 105 82 97 3.3 3.4 3.5 3.4 3.7 3.3 3.0 2.7 2.4 2.0 (fiscal year
Slide 44: Operating Expenses Ratio
Operating Expenses Ratio1 :Operating Expenses Ratio（％） :Operating expenses excl. insurance acquisition cash flows (JPY millions) Fiscal year2 Quarter 20.7% 18.9% 19.4% 16.3% 18.4% 17.8% 17.8% 16.7% 16.7% 16.1% 5,352 4,935 4,715 3,896 3,047 1,337 1,215 1,294 1,463 1,379 (fiscal year) 2020 ’21 ’22 ’23
Slide 45: Summary IFRS P/L (Quarter)
Summary IFRS P/L (Quarter) (JPY millions) Items 2023/4Q 2024/1Q 2024/2Q 2024/3Q 2024/4Q Note Insurance service results 1,947 2,340 2,224 2,628 2,383 Expected claims minus incurred Increased in claim payments for claims1 189 46 (19) 153 12 individual life Risk adjustment release 407 391 405 399 416 C
Slide 46: Breakdown of Insurance Service Results
Breakdown of Insurance Service Results (JPY millions) Items FY2023 FY2024 Insurance revenue 24,698 30,081 Expected claims 10,464 11,170 Risk adjustment release 1,678 1,612 CSM release 7,056 7,440 Recovery of IACF 3,647 4,143 Others (150) (83) Premium income of GCL1 2,004 5,797 Insurance service expe
Slide 47: Breakdown of Financial Results
Breakdown of Financial Results ◼ Decreased due to foreign exchange valuation losses up to Q2 and rising hedging costs from Q3 while an increase in the outstanding balance of foreign securities boosted interest income (JPY millions) Items FY2023 FY2024 Change Investment results 670 53 (616) Interest
Slide 48: Detail of Bond Portfolio
Detail of Bond Portfolio1 As of March 31, 2025 (JPY millions) Available-for-Sale Held-to-Maturity Total JPY Bonds 16,364 35,296 51,661 Duration2 4 years 7 years 6 years Foreign Currency Bonds 12,189 — 12,189 Duration2 4 years Non-Currency Hedged — — — Currency Hedged 12,189 — 12,189 1. Based on J-GA
Slide 49: CSM Movement
CSM Movement ◼ Decreased due to slower growth in new business CSM for individual life and assumption changes (JPY millions) Impact of assumption changes, etc. Items FY2023 FY2024 Interest 2,887 Amortization New business accretion in current CSM CSM, beginning of the period 83,604 92,173 952 period C
Slide 50: CSM Future Allocation
CSM Future Allocation ◼ Stable profits will be realized over long period from in-force CSM ◼ Aim for CSM release growth by adding CSM generated from future acquired new business Future allocation of CSM (JPY billions) Expected timing when CSM is recognized in PL Amount A year 6 A year 1 A year 2 A y
Slide 51: Comprehensive Equity Sensitivity Analysis
Comprehensive Equity Sensitivity Analysis1 ◼ Impacts of changes in assumptions (sensitivities) Changes in Comprehensive Equity (CE) as of March 31, 2025 Of which (JPY millions) Changes in CE % changes changes in CSM2 Comprehensive Equity as of March 31, 2025 167,090 ー 61,140 1.0% increase in risk-fr
Slide 52: Changing Factors of EEV
Changing Factors of EEV1 (JPY millions) Assumption Expected Operating changes existing experience Adjustments business variances 2,262 to the values3 contribution as of Mar. 31, 2025 Value of 956 new business 1,716 70 154,732 6,024 Economic variances and assumption changes (3,289) Adjusted 146,991 i
Slide 53: Solvency Margin Ratio Calculation
Solvency Margin Ratio Calculation As of Mar. 31, 2025 ( (𝑅 1 + 𝑅 8 )2 + (𝑅 2 + 𝑅 3 + 𝑅 7 )2 + 𝑅 4 )/2 (JPY millions) = Solvency margin ratio Total amount of solvency margin Total amount of risk/2 1,590.5％ <numerator> ÷ < the denominator> 【Ref.】 42,730 Consolidated 5,372/2 Solvency margin…
Slide 54: IFRS Reporting
IFRS Reporting ◼ IFRS adoption better presents periodic performance and profitability from policies-in-force ◼ Capital adequacy and dividends are regulated by statutory accounting standards (J-GAAP) Statutory Accounting Embedded Value IFRS 17 （J-GAAP） Economic value of Recognition of revenue Financi
Slide 55: Summary J-GAAP P/L & B/S
Summary J-GAAP P/L & B/S ◼ Strengthen modified co-insurance in FY2025 to mitigate the decline in capital and aim to improve the financial condition (JPY millions) Items FY2023 FY2024 Items End of FY2023 End of FY2024 Ordinary income 35,964 41,994 Total assets 84,194 89,866 Insurance premiums and 34,
Slide 56: Dividend Policy
Dividend Policy ◼ Aim for the increase in total shareholder return by capital gain1 Profit Policies-in-force & profit and loss（illustrative image） : Policies-in-force : New business : J-GAAP profit and loss Retained earnings are realized after generating profit Marketing expenses are recorded in lum
Lifenet Insurance Company — FY2024 Earnings Presentation on 6ix