Lifenet Insurance Company · TSE:7157
Lifenet Insurance — Q1 FY2025 Earnings Presentation
47 slides from Lifenet Insurance's earnings presentation, Aug 13, 2025
Slide 1: Presentation Material for Investors First Quarter for Fiscal 2025
Securities Code: 7157 TSE Prime Presentation Material for Investors First Quarter for Fiscal 2025 August 13, 2025
Slide 2: Future Direction of the New Management Team
Future Direction of the New Management Team Creating and Delivering The Ultimate Insurance Experience ◼ Create a dominant competitive advantage by leveraging technology to transform our business model ◼ Achieve high growth by strengthening our own brand and leveraging the strengths of our partners ◼
Slide 3: New President and Representative Director Junpei Yokozawa
New President and Representative Director Junpei Yokozawa Leveraging career as a systems engineer to drive business forward Brief career history • 2003 Joined NTT DATA Net’s CORPORATION1 -Worked as a System Engineer • 2008 Joined LIFENET INSURANCE COMPANY -Developed core systems for insurance admini
Slide 4: Table of Contents
Table of Contents 1. Strategy of the New Management Team 2. Financial Results for 1Q of FY2025 3
Slide 5: New Management Team
New Management Team ◼ Changing management structure for future growth New New Directors1 Junpei Yokozawa Takeshi Kawasaki President and Representative Director, Executive Vice Director President CFO Partner Business Department, Corporate Planning Department, IT Departments Investment Department, Acc
Slide 6: Advancement of Online Life Insurance
Advancement of Online Life Insurance ◼ Driven by new challenges and technological opportunities, evolving our business model to “Next-Generation Model” Initial Business Model Next-Generation Model From paper to online application Transforming the insurance experience • Reduced personnel and office c
Slide 7: Ultimate Insurance Experience
"Ultimate Insurance Experience" ◼ Creating the “Ultimate Insurance Experience”, aiming to maximize through a digital-first approach Experience-Driven Vehicles for Maximizing Products and Services Customer Reach Ultimate Services beyond Insurance Optimal partnering expectations Experience Products ta
Slide 8: Initiatives to Realize Blueprint
Initiatives to Realize Blueprint ◼ Driving a dominant competitive advantage and high growth through superior service design and maximized reach Partner business (Individuals) Direct business (Individuals) • Expanding scale with services optimized for • Enhancing our brand each partner with a new, cu
Slide 9: FY2024-2028 Mid-term Business Plan
FY2024-2028 Mid-term Business Plan Growth Strategy Goals in Fiscal 2028 Priority Areas Management Goal Comprehensive Equity (CE) : ¥200-240bn Rebranding Embedded Financial Targets 中期計画 Stock price：¥3,000+ Annual growth rate of CE per share： Tech & Services approx. 10% Non-financial Targets (Human ca
Slide 10: Table of Contents
Table of Contents 1. Strategy of the New Management Team 2. Financial Results for 1Q of FY2025 9
Slide 11: 1Q for Fiscal 2025 Key Highlights
1Q for Fiscal 2025 Key Highlights Key Indicators Corporate Value Growth Profitability Comprehensive Equity1 Annualized premium2 Insurance service of policies-in-force results ¥ 170,406mn ¥ 35,214mn ¥ 2,945mn (YoY 105.8%) (YoY 119.3%) (YoY 125.8%) Notable Achievements ◼ Aiming to enhance our value pr
Slide 12: Annualized Premium of Policies-in-Force
Annualized Premium of Policies-in-Force ◼ Resulted in ¥35,214mn and continued significant growth of 19.3% YoY YoY +19.3％ :AP1 of policies-in-force for GCL (JPY millions) :AP1 of policies-in-force for individual life (JPY millions) ¥ 35,214mn Group credit life insurance 29,507 7,923 3,735 Individual
Slide 13: Policies-in-Force Movement
Policies-in-Force Movement ◼ While growth in GCL slows, individual life shows gradual recovery Premium rate revision in Apr.2025 :Net increase of AP of policies-in-force for GCL (JPY millions) :Net increase of AP of policies-in-force for individual life (JPY millions) Net increase of Net increase of
Slide 14: Summary IFRS P/L
Summary IFRS P/L ◼ Insurance service results and net income resulted in ¥2,945mn and ¥2,177mn, respectively (JPY millions) Items FY2024/1Q FY2025/1Q Change Insurance service results 2,340 2,945 604 Financial results1 338 183 (155) Other results (57) (65) (7) Profit before tax 2,621 3,063 442 Net inc
Slide 15: Insurance Service Results
Insurance Service Results1 ◼ Achieved significant growth of 25.8% YoY and 30.1% progress rate for business forecasts :Insurance service results (fiscal year, JPY millions) :Insurance service results (1Q, JPY millions) Business forecasts Progress rate 9,576 2 9,800 for the business forecasts 2 8,222
Slide 16: Insurance Service Results Analysis
Insurance Service Results Analysis ◼ Grew strongly driven by GCL profits and lower-than-expected incurred claims of individual life Insurance service results (JPY millions) 2,945 Items FY2024/1Q FY2025/1Q Change Results from Risk adjustment GCL Expected claims minus incurred Expected claims 46 364 3
Slide 17: GCL Business Performance
GCL Business Performance ◼ Sales through au Jibun Bank are strongly boosting key indicators Key indicator results (as of Jun. 2025) 8.3% (18.9%, if IFRS equity excluded) GCL contracts value Comprehensive 包括資本 Equity 14,185mn 22.5% AP for GCL business AP of 保有契約年換算保険料 policies-in-force 7,923mn 24.8%
Slide 18: Movement of Management Indicators
Movement of Management Indicators ◼ Strongly growing at a CAGR of 18% since IPO European Embedded Value（EEV）1 Comprehensive Equity ¥2,080 ¥2,122 ¥1,991 167,090 170,406 159,802 : EEV (JPY millions) 13,840 14,185 6,709 : GCL contracts value (JPY millions) : CSM after tax (JPY millions) : IFRS Equity (
Slide 19: Changing Factors of Comprehensive Equity (CE)
Changing Factors of Comprehensive Equity (CE) ◼ Increased due to new business CSM, GCL contracts value and net income Management efforts Others : GCL movement（JPY millions）1 Other : CSM movement（JPY millions）1 comprehensive income Other : Equity movement（JPY millions） 1 movement 1,027 (0) 170,406 Im
Slide 20: New Initiatives
New Initiatives ◼ Design a top-tier customer experience, from comparison to payment Improving CX in the comparison phase Enhancing brand with new focus New message emphasizing “Integrity” Comparison Formed capital and business alliance Quote with Advance Create Co., Ltd., aiming for equity-method af
Slide 21: Uplisting to the TSE Prime Market
Uplisting to the TSE Prime Market ◼ Advancing to the next stage of growth by changing our market segment in July 2025, aiming to enhance corporate value and improving market valuation Key benefits • Expansion of customer base and securing of top talent by earning greater public trust • Stable capita
Slide 22: Enhancing Market Valuation
Enhancing Market Valuation ◼ Transition from valuation based on current in-force business value to an expectation-driven valuation incorporating future growth potential Current valuation Approach to improving valuation 2.00 yen ¥ 2,4621 2,400 2,200 Addressing the P/CE ratio of below 1x 2,000 Securin
Slide 23: Consolidated Business Forecasts for FY2025
Consolidated Business Forecasts for FY2025 ◼ Remains unchanged since May 2025 Growth Profitability AP of policies-in-force Insurance service results (JPY millions) Business forecasts (JPY millions) Business forecasts GCL approx. 1,400 37,500 9,800 Individual approx. 1,600 9,576 34,518 2025/03 2026/0
Slide 24: Achieving Mid-term Business Plan
Achieving Mid-term Business Plan ◼ Aim to achieve FY2028 management goal by realizing sustainable growth through investment in priority areas ¥200-240bn CE growth image FY 2028 Financial goals 167 Stock price 159 1241 133 ¥3,000+ Annual growth rate of CE per share approx. 10% 2022/03 2023/03 2024/03
Slide 25: https://ir.lifenet-seimei.co.jp/en/
All information on this document that is not historical fact constitutes forward-looking information and is based on assumptions and forecasts available to the company at the time of preparation. The company cannot guarantee the accuracy of these assumptions and forecasts. Earnings projections and o
Slide 26: LIFENET Manifesto
LIFENET Manifesto Sincere, Easy-to-understand, Affordable and Convenient I. Our Guiding Principles II. Making Life Insurance Accessible Again - Headache-free (1) Creating the future of the life insurance without losing sight of its original (1) Helping the customers help themselves. By making our ma
Slide 27: Appendix
Appendix
Slide 28: Glossary 1
Glossary 1 Glossary Explanation Revenue accrued for fulfillment of insurance services. Mainly, expected claims, expected maintenance expenses, risk Insurance revenue adjustment release, CSM release and recovery of insurance acquisition cash flows. Investment components which will be paid regardless
Slide 29: Glossary 2
Glossary 2 Glossary Explanation An indicator defined by the Group. It is the sum of “Equity (attributable to owners of the Company)” on the IFRS balance sheets, “CSM”, a liability representing unearned profit that the Group expects to earn as it provides insurance services Comprehensive Equity (insu
Slide 30: Breakdown of Policies-in-Force
Individual life Breakdown of Policies-in-Force Component 2024/06 2025/06 ratio Number of policies-in-force 609,888 647,914 100% - Term Life 297,565 313,522 48% - Whole-life Medical & Term Medical 166,558 178,209 28% - Long-term Disability 70,242 72,634 11% - Cancer 68,455 76,426 12% - Other1 7,068 7
Slide 31: Annualized Premium / Number of New Business
Individual life Annualized Premium / Number of New Business :AP1 of new business (JPY millions) :Number of new business 1,123 1,137 1,051 981 969 933 923 889 820 808 792 747 734 675 689 681 639 29,864 27,553 26,167 22,506 24,410 23,928 22,612 22,128 20,934 20,498 19,967 18,471 18,634 16,993 17,174 1
Slide 32: Surrender and Lapse Ratio
Individual life Surrender and Lapse Ratio :Surrender and lapse ratio1（%） 7.6% 6.9% 6.8% 6.6% 6.6% 6.4% 6.4% 6.4% 6.3% 6.3% 6.3% 5.6% 6.0% 6.1% 5.6% 5.5% 5.4% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2021 FY2022 FY2023 FY2024 FY2025 1. The surrender and lapse ratio is the annual equivalen
Slide 33: Insurance Acquisition Cash Flows (IACF) Efficiency
Individual life Insurance Acquisition Cash Flows (IACF) Efficiency :Insurance acquisition cash flows / AP of new business :Insurance acquisition cash flows per new business (JPY thousands) Fiscal year1 Quarter 150 129 133 127 137 131 127 118 3.7 105 97 3.3 3.4 3.2 3.0 3.4 3.3 3.2 2.7 2.4 (fiscal yea
Slide 34: Operating Expenses Ratio
Operating Expenses Ratio1 :Operating Expenses Ratio（％） :Operating expenses excl. insurance acquisition cash flows (JPY millions) Fiscal year2 Quarter 20.7% 19.4% 18.4% 16.7% 14.4% 17.8% 16.7% 14.4% 5,352 16.1% 16.3% 4,935 4,715 3,896 1,463 1,252 1,215 1,294 1,379 1,252 (fiscal year) 2021 ’22 ’23 ’24
Slide 35: Summary IFRS P/L (Quarter)
Summary IFRS P/L (Quarter) (JPY millions) Items 2024/1Q 2024/2Q 2024/3Q 2024/4Q 2025/1Q Note Insurance service results 2,340 2,224 2,628 2,383 2,945 Expected claims minus incurred Incurred claim payments for claims1 46 (19) 153 12 364 individual life decreased Risk adjustment release 391 405 399 416
Slide 36: Breakdown of Insurance Service Results
Breakdown of Insurance Service Results (JPY millions) FY2024 FY2025 Items （Ref.）Fiscal Year １Q 1Q Insurance revenue 30,081 6,776 8,222 Expected claims 11,170 2,694 2,944 Risk adjustment release 1,612 391 404 CSM release 7,440 1,864 1,871 Recovery of IACF 4,143 990 1,123 Others (83) (34) (40) Premium
Slide 37: Breakdown of Financial Results
Breakdown of Financial Results ◼ Decreased due to foreign exchange valuation losses while additional bond purchases increase interest income (JPY millions) Items FY2024/1Q FY2025/1Q Change Investment results 360 184 (176) Interest income 237 284 46 Impairment losses on financial assets, net (3) (0)
Slide 38: Detail of Bond Portfolio
Detail of Bond Portfolio1 As of June 30, 2025 (JPY millions) Available-for-Sale Held-to-Maturity Total JPY Bonds 15,792 36,792 52,585 Duration2 4 years 6 years 5 years Foreign Currency Bonds 13,054 — 13,054 Duration2 4 years Non-Currency Hedged 2,030 — 2,030 Currency Hedged 11,023 — 11,023 1. Based
Slide 39: CSM Movement
CSM Movement (JPY millions) Impact of assumption Interest changes, etc. New business accretion Items FY2024 FY2025/1Q CSM, CSM 251 196 beginning 995 Amortization of the period in current CSM, CSM, beginning of the period 92,173 92,059 92,059 period end of the period (1,871) 91,631 New business CSM 3
Slide 40: CSM Future Allocation
CSM Future Allocation ◼ Stable profits will be realized over long period from in-force CSM ◼ Aim for CSM release growth by adding CSM generated from future acquired new business Future allocation of CSM (JPY billions) Expected timing when CSM is recognized in PL Amount A+year 6 A+year 1 A＋year 2 A＋y
Slide 41: Comprehensive Equity Sensitivity Analysis
Comprehensive Equity Sensitivity Analysis1 ◼ Impacts of changes in assumptions (sensitivities) Changes in Comprehensive Equity (CE) as of June 30, 2025 Of which (JPY millions) Changes in CE % changes changes in CSM2 Comprehensive Equity as of June 30, 2025 170,406 ー 60,907 1.0% increase in risk-free
Slide 42: Impact on CE by Rising Interest Rates
Impact on CE by Rising Interest Rates ◼ Due to product characteristics, future revenue surpasses expenditures in insurance CF’s, positive on CE as contract value ◼ CE would be decreased through valuation losses with rising interest rates but the impact would be limited1 Insurance CF’s Contract value
Slide 43: Composition Ratios of Required Capital (Regulatory Base)
Composition Ratios of Required Capital (Regulatory Base) 1 ◼ Due to our focus on protection products, insurance risk constitutes majority of the risk profile Lifenet2 Industry average3 Other risk Other risk 4% 11% Market risk Insurance Credit risk risk 13% 30% Market risk Insurance risk Credit risk
Slide 44: Solvency Margin Ratio Calculation
Solvency Margin Ratio Calculation As of June 30, 2025 ( (𝑅 1 + 𝑅 8 )2 + (𝑅 2 + 𝑅 3 + 𝑅 7 )2 + 𝑅 4 )/2 (JPY millions) = Solvency margin ratio Total amount of solvency margin Total amount of risk/2 1,611.3％ <numerator> ÷ < the denominator> 【Ref.】 44,092 Consolidated 5,472/2 Solvency margin…
Slide 45: IFRS Reporting
IFRS Reporting ◼ IFRS adoption better presents periodic performance and profitability from policies-in-force ◼ Capital adequacy and dividends are regulated by statutory accounting standards (J-GAAP) Statutory Accounting Embedded Value IFRS 17 （J-GAAP） Economic value of Recognition of revenue Financi
Slide 46: Summary J-GAAP P/L & B/S
Summary J-GAAP P/L & B/S ◼ Strengthen modified co-insurance in FY2025 to mitigate the decline in capital and aim to improve the financial condition (JPY millions) Items FY2024 FY2024/1Q FY2025/1Q Items FY2024 FY2025/1Q Ordinary income 41,994 10,437 12,467 Total assets 89,866 92,803 Insurance premium
Slide 47: Dividend Policy
Dividend Policy ◼ Aim for the increase in total shareholder return by capital gain1 Profit Policies-in-force & profit and loss（illustrative image） : Policies-in-force : New business : J-GAAP profit and loss Retained earnings are realized after generating profit Marketing expenses are recorded in lum
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