Lifenet Insurance Company · TSE:7157
Lifenet Insurance — Q2 FY2023 Earnings Presentation
22 slides from Lifenet Insurance's earnings presentation, Nov 15, 2023
Slide 1: Q2 Financial Results Briefing for the Fiscal Year Ending March 2024
LIFENET INSURANCE COMPANY Q2 Financial Results Briefing for the Fiscal Year Ending March 2024 November 15, 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 Q2 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 today's presentation
Please look at page 1. These are the main points of today's presentation. We started reporting our financial results using IFRS since Q1 of FY2023 and have established three key indicators accordingly. The most important management indicator for corporate value remains European Embedded Value, we se
Slide 4: Main initiatives and latest news
of the GCL business, annualized premium of policies-in-force of JPY2.5 billion and European Embedded Value of JPY4.4 billion as value of new business were added. I will explain the details later. Next, in September, we raised capital through public offering and a third-party allotment in order to un
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 JPY27,255 million at the end of September 2023. You can see that the growth of annualized premium of policies-in-force is accelerating, up 18.8% from the end of September 2022, part
Slide 6: Movement of policies-in-force
Page 3 shows the factors that contribute to the movement of policies-in-force. The newly launched GCL’s net increase in annualized premium of policies-in-force was JPY2.57 billion, which led the significant growth in-force business. On the other hand, the net increase in annualized premium of polici
Slide 7: IFRS income statement summary
Please 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 profit, and for a life insu
Slide 8: Insurance service results
Please refer to page 5. The following graph shows insurance service results. Insurance service results for H1 of FY2023 increased 38.8% YoY to JPY4,088 million. Based on the trends over time, except for FY2022 which has a sharp increase in COVID-19 claim, insurance service results has been growing s
Slide 9: Factors in change of insurance service results
Please refer to page 6. This chart shows the factors that contributed to the change and increase in insurance service results from H1 of FY2022 to H1 of FY2023. First, please see the table on the left. Insurance service results is composed of expected claims minus incurred claims, risk adjustment re
Slide 10: Reinsurance results and gross profit
On the other hand, reinsurance results was a negative factor of JPY245 million, of which JPY160 million included temporary adjustment related to reinsurance transactions. Therefore, the original gross profit out of insurance service results was estimated to have been approximately JPY4.25 billion fo
Slide 11: European Embedded Value
Please refer to page 7, which shows 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 the future, fo
Slide 12: Analysis of changes in EEV
Page 8 is an analysis of factors contributing to changes in EEV for the six-month period, from the end of March 2023 to the end of September 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 contribu
Slide 13: Group credit life insurance with au Jibun Bank
From here is an explanation of our main initiatives. Please refer to page 9. As part of our efforts to expand our business domain, we started offering GCL to au Jibun Bank mortgage loan borrowers since July. au Jibun Bank, our first partner in the GCL business, is a strong partner bank that is achie
Slide 14: Capital raising through public offering
Next, please refer to page 10. In September, we raised our capital through public offering and third-party allotment. The purpose of the capital raising is to achieve further growth and increase corporate value. We believe that we can unleash the growth potential of the online life insurance by real
Slide 15: Internet direct channel initiatives
Next, please refer to page 11. Here are some of the initiatives we are working on to unleash the potential of online life insurance. First, I will talk about initiatives of Internet direct channel of individual life insurance. Our major direction is to further expand support from the younger generat
Slide 16: Embedded into KDDI and au ecosystems
Please refer to page 12. Our unique position as the No.1 online life insurer, which we have consistently built over the past 15 years since its business commencement, has attracted strong partner companies with financial ecosystem. In recent years, embedded finance has been gaining momentum in Japan
Slide 17: Alliance with SMBC Group
And now the two SMBC Group companies, Sumitomo Mitsui Financial Group and Sumitomo Mitsui Card, as well as LIFENET and LIFENET MIRAI, have concluded another business alliance agreement. In addition, LIFENET has issued new shares to Sumitomo Mitsui Card through a third-party allotment. Their comprehe
Slide 18: Insurance with V-points
Please refer to page 13 To be embedded into SMBC Group's huge point ecosystem, we will start offering an exclusive product” Insurance with V-points” for their customer base from December. ” Insurance with V-points” is a life insurance product that earns an additional 1% more V- points on the monthly
Slide 19: New initiatives at LIFENET MIRAI
Please refer to page 14. This shows new initiatives at subsidiary LIFENET MIRAI. LIFENET MIRAI is currently providing services in two main areas, for individuals and corporations, and now has launched a new service for individuals. This is a LINE-based new service that allows customers to save on in
Slide 20: Consolidated business forecasts for FY2023
Please refer to page 15. This is the consolidated business forecasts for FY2023. The business forecasts remains unchanged from the upwardly revised profit forecast in August. While we will certainly need to continue to monitor the status of insurance claims and current trends in the financial market
Slide 21: Future direction
Please refer to page 16. Here is an explanation of our future direction. In the individual life insurance business, we aim to take our Internet direct channel to another level and re-accelerate growth. In addition, we intend to further improve the contribution to our business performance through the
Slide 22: 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 continue to expand the online life insurance market and remain a leading company in this market, aiming to
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