Lifenet Insurance Company · TSE:7157
Lifenet Insurance — FY2024 Earnings Presentation
33 slides from Lifenet Insurance's earnings presentation, May 14, 2025
Slide 1: Full Year Financial Results Briefing for the Fiscal Year Ended March 2025
LIFENET INSURANCE COMPANY Full Year Financial Results Briefing for the Fiscal Year Ended March 2025 May 14, 2025 [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 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© LIFENET
Slide 3: Summary of today's points
Please look at page 1. First, let’s start with a summary of today’s points. For FY2024 results, annualized premiums of policies-in-force increased 120% from the end of the previous fiscal year, and insurance service results increased 117% from the previous fiscal year, representing a significant inc
Slide 4: Copyright© LIFENET INSURANCE COMPANY All rights reserved.
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Slide 5: Financial highlights for FY2024
First, we will provide the financial highlights for FY2024. Please refer to page 3. Comprehensive Equity or CE, a management indicator of corporate value, totaled JPY167.09 billion, 104.6% of the end of the previous fiscal year. Annualized premiums of policies-in-force, an indicator of growth, total
Slide 6: Annualized premiums of policies in-force
Please refer to page 4. Annualized premiums of policies in-force totaled JPY34.518 billion at the end of March 2025, surpassing the JPY34 billion that had been disclosed as the business forecast. We were able to continue strong growth in both our individual insurance and GCL businesses, with 120.1%
Slide 7: Policies-in-force movement
Page 5 shows policies-in-force movement. The net increase in individual insurance, which had been a challenge, was significantly higher in Q4 than in Q3, thanks to aggressive sales investments especially since January 2025. The GCL business also continues to perform well, steadily accelerating growt
Slide 8: Summary of IFRS P/L
Page 6 presents a summary of IFRS P/L. In FY2024, insurance service results was JPY9.576 billion, and the net income attributable to owners of the Company was JPY5.993 million. As reported in the announcement of the Q3 results, net income includes a one-time impact of JPY612 million due to the speci
Slide 9: Insurance service results
Please refer to page 7. In FY2024, the insurance service results grew strongly to JPY9.576 billion, 116.5% of FY2024, and landed at a level exceeding the forecast of JPY8.9 billion. Excluding FY2022, which was impacted by COVID-19-related payments, you can see that we have continued to grow steadily
Slide 10: Factors in insurance service results increase
Page 8 shows the main reasons for the JPY1.354 billion increase in insurance service results from the FY2023 to FY2024. The main reasons for the increase were a JPY383 million increase in CSM releases and a JPY2,242 million increase in results from GCL. We will continue to aim for further profit gro
Slide 11: Change of management indicator to Comprehensive Equity
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 on the IFRS balance sheet,
Slide 12: Changes in management indicators of corporate value
Page 10 shows changes in management indicators that represent its corporate value. We show EEV through the end of March 2023 and show CE for the period ended March 31, 2024 and thereafter. CE at the end of March 2025 was JPY167 billion, and management indicators have achieved high growth since IPO,
Slide 13: Factor analysis of changes in CE
Please refer to page 11. This is a factor analysis of changes in CE for a 12-month period from the end of March 2024 to the end of March 2025. While there were positive factors arising from changes in the value of group credit contracts and management efforts such as “net income” and “GCL contracts
Slide 14: FY2024 initiatives for individual insurance business
Page 12 shows the FY2024 initiatives for the individual insurance business. In the direct business, based on the priority area of “Rebranding” in a mid-term business plan, we have developed aggressive sales measures, including the development of new products and the refresh of the brand message that
Slide 15: Group credit business performance
Page 13 shows our performance in the group credit business. In FY2024, our second year in business, we revised premiums rate in July and also offered a new product—GCL for joint mortgage—in January 2025. The balance of mortgage loans executed by our partner bank, au Jibun Bank, also grew strongly, a
Slide 16: Human resource strategy initiatives
Page 14 is an initiative related to human resource strategies. In order to vigorously promote our priority areas, we are also focusing on investing in human resources. In FY2024, we relocated our headquarters office for the first time since business commencement. We believe that we have created an e
Slide 17: Progress toward mid-term business plan
Please see page 15. Finally, here is our progress toward our mid-term business plan goals, which will end in FY2028. We evaluate FY2024 as a year in which we made steady progress toward our financial and non-financial targets through the initiatives I have described and others. We will further raise
Slide 18: Copyright© LIFENET INSURANCE COMPANY All rights reserved.
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Slide 19: Business environment
Please refer to page 17. There is no particular change in our recognition of the business environment as described in our mid-term business plan announced last May. The shift of financial services online is irreversible and structural, and many customers already use financial services online on a da
Slide 20: Three priority areas of the mid-term plan
In light of the business environment described above, we have established three priority areas in our mid-term business plan that will support future business growth. “Rebranding”,“Tech & Services”, and “Embedded” are the three key themes that we believe will take Lifenet to the next stage of growth
Slide 21: Growth loop through priority areas
Please refer to page 19. This represents our growth loop through these three priority areas. Since its inception, Lifenet has expanded and led this market as a leading company specializing in online life insurance. We are proud of our efforts to increase Lifenet’s recognition and brand power through
Slide 22: Use of AI in Tech & Services and Rebranding
From page 20 onward, we will explain the initiatives that will be implemented based on each priority area. First, as an initiative related to “Tech & Services” and “Rebranding”, I would like to discuss the potential for the use of AI. Today, AI is said to be fundamentally changing the structure of s
Slide 23: Embedded strategy with partners
Please see page 21. We will vigorously promote our "Embedded" strategy by making the most of our partners' strong customer bases and providing products and services optimized for their respective economic zones. In the individual life insurance domain, we will develop and provide products and servic
Slide 24: Aggressive marketing investment in FY2025
To promote these initiatives, in FY2025, under the new management team, we will aggressively invest in marketing expenses for the first time in three years. The last two years have been a frustrating period in which we have been unable to make aggressive investments while assessing changes in the ex
Slide 25: Consolidated business forecasts for FY2025
Please see page 23. Based on the initiatives explained so far, we present our consolidated business forecasts for FY2025. First, as a growth indicator, we expect annualized premiums of policies-in-force as of March 31, 2026 to be 37.5 billion yen. Then, as a profitability indicator, we project insur
Slide 26: Efforts to improve market evaluation
In the last section, we will discuss our efforts to improve market evaluation. Copyright© LIFENET INSURANCE COMPANY All rights reserved. 25
Slide 27: Indicators related to market valuation
Please refer to page 25. This page shows various indicators related to our market valuation. The graph on the left-hand side shows the gross value of CE and CE per share, which represent corporate value. You can see that CE per share, the theoretical price of the company's stock, has continued to gr
Slide 28: Initiatives to improve market evaluation
Please see page 26. This section explains our efforts to improve market evaluation. Major initiatives to achieve a stable P/CE ratio of over 1x (one time) include: "strong commitment to shareholder value" by announcing a mid-term business plan that includes a stock price target; "adoption of corpora
Slide 29: Internal ESR disclosure
Please see page 27. Internal ESR, calculated for internal management as the indicator of the soundness, currently stands at 364%. Our ESR, which is high relative to our peers, stems from the extremely high risk-return efficiency of our business model. Specifically, the high risk-return efficiency of
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Slide 31: New management team
Finally, I would like to explain our new management team. On March 17, we announced changes to our management team to focus on business growth in response to the change in our growth phase. There are three main things that have been achieved under the current management structure since 2018, when I
Slide 32: Management team reform and governance
We would like to reform our management team, including the change of the President and Representative Director, based on the conviction that a new management team that can tackle and overcome these new management challenges head-on is indispensable for putting Lifenet on a strong growth path and fur
Slide 33: Five-year mid-term plan summary and closing
Please see page 29 for a summary of the five-year mid-term plan announced last May, ending in FY2028. Through the implementation of our three priority areas and human resource strategy to move us to the next stage of growth, we aim to achieve the management goal of Comprehensive Equity as well as th
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