Lifenet Insurance Company · TSE:7157
Lifenet Insurance — Q1 FY2024 Earnings Presentation
21 slides from Lifenet Insurance's earnings presentation, Aug 14, 2024
Slide 1: 1Q Financial Results Briefing for Fiscal Year Ending March 2025
LIFENET INSURANCE COMPANY 1Q Financial Results Briefing for the Fiscal Year Ending March 2025 August 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 Q1 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
Please see page 1. These are the main points of today's financial results presentation. In May, we announced a new mid-term business plan and set three key indicators. First, we changed the most important management indicator for corporate value from European Embedded Value to Comprehensive Equity (
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 JPY29,507 million at the end of June 2024. We achieved significant growth of 20.9% over the end of the June 2023, due in part to the addition of GCL in July 2023. Copyright© LIFENET
Slide 5: Movement of policies in-force
Page 3 shows the factors that contribute to the movement of policies-in force. The net increase in annualized premium of policies-in-force for individual life insurance in Q1 was JPY348 million. The decline in demand for protection-based products due to the economic re-openings after COVID-19 bottom
Slide 6: IFRS income statement summary
Then see page 4. 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 income, and for a life insura
Slide 7: Insurance service results
Please refer to page 5. The following graph shows insurance service results. First, looking at trends over time, with the exception of FY2022, when there was a sharp increase in COVID-19 related claims, insurance service results continued to grow steadily, reaching JPY2,340 million in Q1 of FY2024.
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 Q1 of FY2023 to Q1 of FY2024. First, please see the table on the left. Insurance service results is mainly broken down into four components: expected claims minus incurred claim
Slide 9: Reason for small profit growth and GCL contribution
the main reason for small profit growth is that the Q1 of FY2023 had an extremely good payment situation. And there is one more factor, GCL business contributed strongly to profit growth, generating an increase of JPY272 million, the first profit record since the start of the GCL business. The CSM i
Slide 10: Change of management indicator to Comprehensive Equity
Please refer to page 7. We have changed our management indicator from “European Embedded Value” to “Comprehensive Equity”. Comprehensive Equity is an indicator of our corporate value same as EEV. Comprehensive Equity, which we define as our own measure, is expressed as the sum of three components: e
Slide 11: Movement of management indicators
Page 8 shows the movement of management indicators. The graph tracks EEV until March 2023. From March 2024, it shows Comprehensive Equity instead. Comprehensive Equity at the end of June 2024 was JPY161 billion, and management indicators have achieved high growth since listing, with CAGR of 19%. The
Slide 12: Factor analysis of changes in Comprehensive Equity
Page 9 presents a factor analysis of changes in Comprehensive Equity for the three-month period from the end of March 2024 to the end of June 2024. Among changes in equity, other comprehensive income was negatively affected by the rise in interest rates during the quarter, but CE as a whole increase
Slide 13: Group credit life one year after launch
Here is an explanation of our main initiatives. Please refer to page 10. One year has passed since we started offering GCL to au Jibun Bank mortgage loan borrowers in July 2023 as our first GCL business since our business commencement. au Jibun Bank is a strong partner whose growth in the mortgage l
Slide 14: GCL premium rate revision and expansion
Please refer to page 11. We revised the premium rate for GCL in July 2024, and annualized premium of policies-in-force at the end of July was JPY6,068 million (preliminary figures). We expect to continue to support the growth of au Jibun Bank's mortgage business from the aspect of better GCL product
Slide 15: Dementia insurance product with Eisai
Please refer to page 12. In April 2024, we launched dementia insurance product co-developed with Eisai Co., Ltd. The background of our business alliance with Eisai is that we aim to contribute to mitigate the burden of medical and nursing care for people living in an aging society, and as part of th
Slide 16: Rebranding and marketing message
Please refer to page 13. As a part of efforts of “Rebranding”, one of the priority areas in the mid-term business plan, we have changed our marketing message since April. With the online life insurance market becoming more mainstream and competitive, our goal is to solidify our position as the leadi
Slide 17: Impact of rising yen interest rates
Page 14 shows the impact of the current rise in yen interest rates. As for the short-term impact, we expect negative impact on equity in Comprehensive Equity and IFRS net income, but the impact is well controlled or mitigated due to the characteristics of our insurance products and the way we hold y
Slide 18: Consolidated business forecasts for FY2024
Page 15 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 payments for both individual life and GCL, we will continue to manage our business with an awareness of
Slide 19: Mid-term business plan overview
Please refer to page 16. This is an overview of the five-year mid-term business plan ending in FY2028. Through the implementation of the three priority areas and human resources strategies that will enable us to move to the next stage of growth, we aim to achieve our financial targets of a stock pri
Slide 20: Efforts to improve stock price and CE per share
Please refer to page 17. We will explain our current recognition and efforts to improve our stock price and CE per share as set forth in our mid-term plan. 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 the Comprehensiv
Slide 21: Closing remarks
Finally, please see page 18. 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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