Lifenet Insurance Company · TSE:7157
Lifenet Insurance — Q2 FY2024 Earnings Presentation
18 slides from Lifenet Insurance's earnings presentation, Nov 14, 2024
Slide 1: 2Q Financial Results Briefing for the Fiscal Year Ending March 2025
LIFENET INSURANCE COMPANY 2Q Financial Results Briefing for the Fiscal Year Ending March 2025 November 14, 2024 [Speaker] Ryosuke Mori President and Representative Director
Slide 2: Presentation
Presentation Mori: Thank you very much for attending our financial results briefing today. We announced financial results for Q2 FY2024. Presentation materials are available on our IR website. I would like to provide an overview of the financial results using the presentation materials. Copyright© L
Slide 3: Main points of today's financial results presentation
Please look at page 1. These are the main points of today’s financial results presentation. First, Comprehensive Equity or CE, the most important management indicator of corporate value, increased 7.9% to JPY164,974 million, mainly due to growth in GCL contracts value. Next, annualized premium of po
Slide 4: Annualized premium of policies-in-force
Please refer to page 2. Annualized premium of policies-in-force, which correspond to annual recurring revenue, totaled JPY32,559 million as of September 30, 2024. It continued to grow strongly with an increase of 19.5% over the end of the same period last year. Copyright© LIFENET INSURANCE COMPANY A
Slide 5: Movement of policies-in-force by segment
Page 3 shows the factors that contribute to the movement of policies-in-force. As explained above, while the overall performance of policies-in-force continues to grow strongly, looking at the performance by business segment, we recognize that the growth of for individual life insurance has been slo
Slide 6: IFRS income statement summary
Next, please refer to page 4. From here we move on to an explanation of financial reporting under IFRS. To give you an initial sense of the whole picture, we have provided a summary of the IFRS- based income statement. To put it simply, insurance service results is equivalent to operating income, an
Slide 7: Historical insurance service results
Please refer to page 5. The following graph shows the historical record of insurance service results. Looking at the trends over the years, excluding FY2022 when there was a sharp increase in COVID-19-related claims, insurance service results have steadily grown. In the H1 of FY2024, it has reached
Slide 8: Factors in change of insurance service results
Please refer to page 6. The following chart shows the factors contributing to the change in insurance service results from H1 of FY2023 to H1 of FY2024. See the table on the left. Insurance service results is mainly broken down into the following items: the difference between expected and incurred c
Slide 9: Change of management indicator to Comprehensive Equity
Next, please see page 7. We have changed our management indicator from “European Embedded Value” to “Comprehensive Equity”. Comprehensive Equity is an indicator of our corporate value, the same as EEV. Comprehensive Equity, which we define as our own measure, is the sum of three components: equity o
Slide 10: Trends in management indicators
Page 8 shows trends in management indicators. In the graph, we show EEV until the end of March 2023, and Comprehensive Equity at the end of March 2024 and September 2024. As for Comprehensive Equity as of the end of September 2024, it amounted to JPY164.9 billion, and the management indicator has ac
Slide 11: Factors contributing to changes in Comprehensive Equity
Page 9 presents an analysis of the factors contributing to changes in Comprehensive Equity for the six-month period from the end of March 2024 to the end of September 2024. The impact of sluggish growth in new business CSM and rising inflation rate resulted in slightly negative, and thus CSM growth
Slide 12: GCL for joint mortgage loans
In the slides that follow, I will explain the main newly announced initiatives. Please refer to page 10. We have been providing group credit life insurance to au Jibun Bank mortgage loan borrowers since last July. We are pleased to announce that we have decided to start offering a group joint credit
Slide 13: Term medical insurance Jibun Z
Please refer to page 11. As one of the initiatives of “Rebranding”, our priority area in the mid-term business plan, the Company started sales of term medical insurance, Jibun Z and Jibun Z for Women in October. In the Japanese medical insurance market, the majority of policies are whole life type m
Slide 14: Efforts to improve stock price and Price to CE multiple
Please refer to page 12. This slide shows our current perception of and efforts to improve our stock price and Price to CE multiple. The dark green line on the left side of the graph shows the price-to-CE ratio, which is the ratio of the stock price divided by Comprehensive Equity per share. To date
Slide 15: Employee stock compensation plan
On the next page, we will explain in detail about its employee stock compensation. Please refer to page 13. We are pleased to announce today that we are introducing it for all employees to raise awareness of shareholder value and to invest in human capital. In light of the stock price target in our
Slide 16: Consolidated business forecasts for FY2024
Page 14 shows consolidated business forecasts for FY2024. The business forecast remains unchanged from May 2024 announcement. While we will need to continue to closely monitor trends in insurance claim payments for both individual life and GCL, we will continue to manage our business with an awarene
Slide 17: Mid-term business plan ending FY2028
Please refer to page 15. This is an overview of the five-year mid-term business plan ending in FY2028. Through the implementation of our three priority areas and human resources strategy to move us to the next stage of growth, we aim to achieve our financial targets of a stock price of over JPY3,000
Slide 18: Closing remarks
This slide will be the last. We will continue to pursue growth to expand the scale of our business while capturing the structural trend of digitization of financial services. On this basis, we will strive to achieve strong and sustainable growth through both the individual life insurance and GCL bus
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