Outline of Financial Results for
the Fiscal Year Ended March 31, 2021
May 14, 2021
Summary of Financial Results
Ordinary Profit
Net income
Annualized
premiums from
New policies
Annualized
premiums from Policies in Force
EV
Year ended
Mar-21
- 345.7bn
- 166.1bn
(Individual Insurance)
¥ 30.6bn
(Medical Care)
¥ 1.4bn
(Individual Insurance)
¥ 3,898.1bn
(Medical Care)
- 669.1bn
- 4,026.2bn
Year on Year
- 59.1bn
- 20.6 %
- 15.4bn
- 10.2 %
- (116.3)bn (79.1) %
- (20.6)bn (93.4) %
- (420.5)bn (9.7) %
- (46.4)bn (6.5) %
- 701.9bn
- 21.1 %
【Financial Highlights】
- As the policies in force have been declining continuously, core profit increased due to a decrease in operating expenses as a result of decreased new policy sales, and a decrease in payment of hospitalization benefit etc. In addition, capital losses improved and ordinary profit for the current period was ¥ 345.7billion, a 20.6% increase year on year.
- Capital losses are offset by the price fluctuation reserves. Thus, net income for the current period was ¥ 166.1billion, a 10.2 % increase year on year.
【Policy Sales】
- Annualized premiums from new policies for individual insurance were ¥ 30.6billion, a 79.1% decrease year on year, while annualized premiums from new policies for medical care were ¥ 1.4billion, a 93.4% decrease year on year as we had been refraining from proactive sales proposal during FY21/3.
【Embedded Value】
- EV increased by 21.1% from the end of the previous fiscal year to ¥ 4,026.2billion, due to increases in interest rates, stock prices and other factors.
Copyright© JAPAN POST INSURANCE All Rights Reserved. | 1 |
Financial Results for Year Ended March 31, 2021 (Year on Year)
Statement of Income
(¥bn) | |||||
Year ended | Year ended | Change | |||
Mar-20 | Mar-21 | ||||
Ordinary income | 7,211.4 | 6,786.2 | (425.1) | ||
Insurance premiums | 3,245.5 | 2,697.9 | (547.6) | ||
and others | |||||
Investment income | 1,137.7 | 1,121.6 | (16.1) | ||
Reversal of policy reserves | 2,767.3 | 2,895.4 | 128.0 | ||
Ordinary expenses | 6,924.8 | 6,440.4 | (484.3) | ||
Insurance claims | 6,191.3 | 5,866.0 | (325.2) | ||
and others | |||||
Investment expenses | 124.0 | 70.8 | (53.1) | ||
Operating expenses etc1 | 609.4 | 503.5 | (105.8) | ||
Ordinary profit | 286.6 | 345.7 | 59.1 | ||
Extraordinary gains and losses | 39.2 | (46.7) | (85.9) | ||
Reversal of reserve for price | 39.1 | (46.4) | (85.6) | ||
fluctuations | |||||
Provision for reserve | 109.2 | 65.4 | (43.7) | ||
for policyholder dividends | |||||
Total income taxes | 65.9 | 67.4 | 1.5 | ||
Net income attributable | 150.6 | 166.1 | 15.4 | ||
to Japan Post Insurance | |||||
Note: Only major line items are shown. | |||||
1. Sum of Operating expenses and Other ordinary expenses |
Details of Ordinary Profit (Non-Consolidated)
(¥bn) | ||||
Year ended | Year ended | Change | ||
Mar-20 | Mar-21 | |||
Core profit | 400.6 | 421.9 | 21.3 | |
Core profit attributable to | 320.1 | 345.6 | 25.4 | |
life insurance activities | ||||
Positive spread | 80.4 | 76.3 | (4.1) | |
Net capital gains (losses) | (102.4) | (17.1) | 85.3 | |
Other one-time profits (losses) | (11.3) | (59.8) | (48.4) | |
Ordinary profit | 286.8 | 345.0 | 58.1 | |
Copyright© JAPAN POST INSURANCE All Rights Reserved. | 2 |
Factors for Year on Year Changes (Non-Consolidated)
- As the policies in force have been declining continuously, core profit exceed year on year to ¥ 421.9billion mainly due to the decrease in operating expenses as a result of decreased new policies sales, and a decrease in payment of hospitalization benefit etc.
- Regarding capital gains or losses, we continued to adopt accounting treatments to provide or to reverse the price fluctuation reserves corresponding to the gain or loss amount. Net income increased year on year to ¥ 165.5billion as a result of an increase in core profit, etc.
Ordinary profit 345.0
+ 58.1
(¥bn) | Core profit | 421.9 | 165.5 | ||||
+ 21.3 | +85.3 | ||||||
+ 14.4 | |||||||
151.1 | + 25.4 | ||||||
+ 43.7 | Consolidated: | ||||||
Consolidated: | 166.1 | ||||||
(4.1) | |||||||
150.6 | (1.5) | ||||||
(48.4) | (85.9) | ||||||
(＋) Decrease in operating expenses, etc.1 | 74.4 | ||||||
(－) Decrease in policies in force, etc. | 86.2 | ||||||
(＋) Influence of provisions2 | 37.2 | ||||||
3 | |
Excess provision of | Provision for |
price fluctuations | |
contingency reserve, | |
reserve, etc. | |
etc. | |
- "Decrease in operating expenses, etc." shows the difference of figures between FY20/3 and FY21/3. This figure is calculated by adding up "Operating expenses" and "Other ordinary expenses". However, the impact of reserve for insurance claims and others, etc. have been adjusted through the item "Influence of provisions".
- Influence of reversal of reserve for insurance claims and others, etc. on core profit attributable to life insurance activities based on the progress in the policy investigation and actual policy reinstatement. This includes the impact of reserve for insurance claims and others, etc. in FY20/3. (Amount of reversal, etc. in FY21/3: ¥ 5.2billion, Amount of provision, etc. in FY20/3: ¥ 31.9billion)
- For the Postal Life Insurance category, the Company accumulated additional policy reserves which were funded by contingency reserves at the end of March, 2021. With this operation, the Company also provided excess provision for contingency reserves in order to restore the level of them at the end of March, 2021.
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Policy Sales 〔Annualized Premiums from New Policies〕
Annualized Premiums from New Policies
(Individual Insurance)
(¥bn)
- .0
- .0
351.3
- .0
- .0
- .0
- .0
146.9
Annualized Premiums from New Policies
(Medical Care)
(¥bn) |
70.0 |
60.0 |
61.6 |
50.0 |
40.0 |
30.0 |
20.0 |
100 .0
50.0
30.6
22.1 | ||
10.0 | ||
1.4 | ||
(79.1) %
0.0
FY19/3 | FY20/3 | FY21/3 |
(93.4) % |
0.0 |
FY19/3 | FY20/3 | FY21/3 |
Note1 : Annualized premiums are calculated by multiplying the amount of a single premium installment payment by a multiplier determined according to the relevant payment method to arrive at a single annualized amount. (For lump-sum payments, annualized premiums are calculated by dividing the total premium by the insured period.) Medical care corresponds to medical and living benefits, etc. Annualized premiums (individual insurance) include the premiums for medical care related to individual insurance.
Note2 : The figures for FY20/3 and FY21/3 include the influence by refraining from proactive sales proposal from mid-July 2019 and business suspension from January 2020 to March 2020.
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