Lifenet Insurance Company · TSE:7157
Lifenet Insurance — Q1 FY2023 Earnings Presentation
21 slides from Lifenet Insurance's earnings presentation, Aug 14, 2023
Slide 1: 1Q Financial Results Briefing for the Fiscal Year Ending March 2024
LIFENET INSURANCE COMPANY 1Q Financial Results Briefing for the Fiscal Year Ending March 2024 August 14, 2023 [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 Q1 FY2023. Presentation materials are available on our IR website. I would like to provide an overview of the financial results using the presentation materials
Slide 3: Introduction to IFRS reporting vs statutory accounting and Embedded Value
Please look at page 1. We are pleased to announce that we will report our financial results using IFRS starting from Q1 FY2023. This is the first attempt for a life insurance company listed in Japan and it means a great challenge for us. Since today is the first announcement of financial results usi
Slide 4: IFRS 17 can meet these demands
IFRS 17 can meet these demands. IFRS 17 has a characteristic that it records revenue based on the maintenance of in-force business and allocates expected profits over the insurance period. Financial reporting under IFRS 17 will enable us to present the actual periodic profit and loss and profitabili
Slide 5: Main points of the financial results
I will now move on to the explanation of the financial results. Please refer to page 2. These are the main points of today's financial results presentation. We have established three key indicators with the change in financial reporting to IFRS. While the most important management indicator of corpo
Slide 6: New initiative: Habitto and revised forecasts
In addition, as a new initiative for the future, we plan to start selling life insurance products through Habitto, a financial services app provided by our new partner, in autumn 2023. Finally, we revised our consolidated business forecasts for FY2023 based on Q1 results. We will explain the details
Slide 7: Annualized premiums of policies-in-force
Please refer to page 3. Annualized premiums of policies-in-force, which correspond to annual recurring revenue, totaled JPY24,408 million at the end of June 2023, continuing steady growth. Although preliminary figures, annualized premiums of policies-in-force as of July 31, 2023, including group cre
Slide 8: Factors in movement of policies-in-force
Page 4 shows the factors that contribute to the movement of policies-in-force. The net increase in annualized premiums of policies-in-force for individual life insurance in Q1 was JPY375 million. Although the growth trend of in-force business has continued, the current pace of growth has slowed to s
Slide 9: IFRS-based income statement summary
Please refer to page 5. From here we move on to an explanation of financial reporting under IFRS. To give you the whole picture, we have provided a summary of the IFRS-based income statement. To put it simply, insurance service results is the equivalent of so-called operating profit or loss, and for
Slide 10: Insurance service results
Please refer to page 6. The following table shows insurance services results. First, looking at trends over time, with the exception of FY2022, when there was a sharp increase in COVID-19 claim, insurance service results has been growing steadily, increasing 37.7% YoY to JPY2,274 million in Q1 of FY
Slide 11: Factors in change of insurance service results
Please refer to page 7. The following chart shows the factors that contributed to the change in insurance services results from Q1 of FY2022 to Q1 of FY2023. First, please see the table on the left. Insurance service results is broken down into four main components: expected claims minus incurred cl
Slide 12: CSM release amount
With the growth of in-force business, the CSM release amount increased from JPY1,537 million in Q1 FY2022 to JPY1,677 million in Q1 FY2023, as shown in the third line of the table on the left, resulting in a positive recording of JPY140 million. Copyright© LIFENET INSURANCE COMPANY All rights reserv
Slide 13: European Embedded Value
Please see page 8. Moving on to an explanation of European Embedded Value. European Embedded Value is considered to be the present value of net assets, which is the net asset value after taking into account the after-tax value of unrealized future profits that the in-force business will generate in
Slide 14: Analysis of changes in EEV
Page 9 is an analysis of factors contributing to changes in EEV for the three-month period from the end of March 2023 to the end of June 2023. We define adjusted incremental EV as the sum of the three components of the change in EEV: the value of new business, expected existing business contribution
Slide 15: Group credit life insurance with au Jibun Bank
From here is an explanation of our main initiatives. Please refer to page 10. As our first group credit life insurance business since business commencement, we began offering group credit life insurance to au Jibun Bank mortgage loan borrowers on July 1, 2023. au Jibun Bank is an encouraging partner
Slide 16: Group credit business as a new step
We believe that our efforts in the group credit business are a new and significant step toward unlocking the potential of online life insurance through the expansion of our business domain and further enhancing our corporate value. To this end, we will first strive to steadily grow our cooperation w
Slide 17: Distribution agreement with Habitto
Please refer to page 11. We have signed a distribution agency agreement with Habitto, and by around the autumn of 2023 we plan to begin offering life insurance products through the Habitto, financial services app. Habitto is a digital bank that proposes new money habits and provides financial servic
Slide 18: Sustainability initiatives
Please refer to page 12. I would like to present our initiatives in terms of sustainability. We have cherished LIFENET Manifesto since business commencement in 2008, and it begins with a single clause: creating the future of life insurance. In the area of sustainability, we place importance on the c
Slide 19: Revised consolidated business forecasts for FY2023
Please refer to page 13. Based on the results for Q1 of the current fiscal year, we have revised our consolidated business forecasts for FY2023 as shown in the table below. First, we have revised our forecast for annualized premium of policies-in-force, a growth indicator, to JPY28.2 billion, about
Slide 20: Future direction
Please refer to page 14. Here is an explanation of our future direction. The individual life insurance business has achieved continuous growth to date, and we aim to accelerate growth again by taking our mainstay Internet channel to another level. In addition, we intend to further improve the contri
Slide 21: Management policy
Finally, this is the management policy. We will continue to firmly expand the online life insurance market by our own efforts and remain a leading company in this market, aiming to achieve an EEV of JPY200 billion as soon as possible. We have taken on new initiatives such as the introduction of IFRS
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