FY2025 T&D Insurance Group’s Financial Results

‌Copyright T&D Holdings, Inc. All Rights Reserved.

‌[Cautionary Notes]

·This document contains forward-looking statements regarding future performance. These statements do not guarantee future performance and involve risks and uncertainties. Please note that actual results may differ from plans or forecasts due to changes in the business environment, etc.

·The financial figures for the fiscal year ended March 2025 reflect retrospective application of the revised U.S. accounting standards (LDTI) related to long-term insurance

liabilities at Fortitude, a foreign reinsurance affiliated company in which TDUC invested.

• ‌ Group adjusted profit exceeded the full-year forecast of ¥146.0 billion, driven by strong performance in the domestic life insurance business, reaching a record high of ¥158.5 billion.

• Domestic life insurance business recorded a 48.0% year-on-year increase in core profit, due to an increase in interest and dividends income, etc.

• The dividend per share for FY2025 is expected to be ¥130, up ¥50 year on year, representing the 11th consecutive annual increase.

  	Items	FY2024	FY2025	Change	Main Factors of Increase/ Decrease
  Consolidated Financial Results	Group adjusted profit	¥ 140.0bn	¥ 158.5bn	+13.1%	An increase in interest and dividends income in domestic life insurance companies, etc.
  	Profit attributable to owners of parent	¥ 126.3bn	¥ 138.9bn	+10.0%
  Domestic Life Insurance Business	Annualized premiums of new policies	¥ 213.2bn	¥ 206.5bn	(3.2%)	Lower sales through the bancassurance channel, among other factors
  	Annualized premiums of policies in force	¥1,703.9bn (2025/03)	¥1,751.8bn (2026/03)	+2.8％ (from end-FY2024)	The accumulation of new policies and higher ceded reinsurance recoveries, etc.
  	Income from insurance premiums	¥ 2,568.5bn	¥ 2,623.0bn	+2.1%
  	Core profit	¥ 162.0bn	¥ 239.8bn	+48.0%	An increase in interest and dividends income and a decrease in currency hedging cost, etc.
  	Adjusted profit (sum of three companies )	¥ 128.3bn	¥ 151.0bn	+17.6%	An increase in core profit, etc.
  Closed Book Business	Adjusted profit (TDUC consolidated)	¥ 12.6bn	¥ 10.7bn	(14.7%)	A decrease in investment income of foreign reinsurance affiliated company, etc.

  Shareholder Returns

  Annual dividend per share [Will mark the 11th consecutive years of dividend increase.]

  (FY2025plan) ¥130.0

  (FY2026forecast) ¥164.0

  
  
  

  • ‌ Group adjusted profit and Profit attributable to owners of parent increased year-on-year mainly due to an increase in interest and dividends income in domestic life insurance companies.

    • Group Adjusted profit ■ Profit attributable to owners of parent

      (Billions of yen)

      (Billions of yen)

      	FY2024	FY2025	Change
      Group Adjusted profit	140.0	158.5	+13.1%

      	FY2024	FY2025	Change
      Consolidated	126.3	138.9	+10.0%

      [Reference] Group Adjusted Profit

      Group adjusted profit is one of the indicators to measure the source of shareholder returns and the actual business conditions of the Group. Specifically, this is calculated by adjusting the profit attributable to owners of parent for the following items:

      1. Accounting valuation gains or losses with no economic substance arising from market fluctuations, etc.

         （Adjustment is made for temporary valuation gains and losses on reinsurance assets of Fortitude and MVA valuation gains and losses, etc.）

      2. Additional internal reserves (reversal) in excess of the legal standard requirements

      3. Amortization of goodwill, etc.

      For certain overseas affiliates, profits based on local accounting standards are included in the Group adjusted profit.

      
      
      

• ‌ Group EV increased from the end of the previous fiscal year, reflecting the accumulation of value of new business and a rise in domestic and foreign stock prices.

• Value of new business, the value expected to be generated in the future from insurance policies (including converted policies) sold in this period, converted to a present value at the valuation date, increased year-on-year mainly due to an increase in new policy amount and a rise in domestic interest rates.

  • EV ■ Value of new business

  （億円 ）

  (Billions of yen)

  (Billions of yen)

  		2025/03	2026/03	Change
  Group EV		3,945.7	4,238.6	+ 7.4%
  	Taiyo Life	1,133.2	1,159.4	+ 2.3%
  	Daido Life	2,731.9	2,845.7	+ 4.2%
  	TDF	171.7	184.6	+ 7.5%

  	FY2024	FY2025	Change
  Sum of three companies	166.1	169.0	+ 1.8%
  Taiyo Life	27.2	27.4	+ 0.7%
  Daido Life	130.0	132.6	+ 2.0%
  TDF	8.8	8.9	+ 1.8%

  [Reference] EV

  ・Embedded Value ("EV") is one of the indicators for evaluating the corporate value of life insurance companies, which is the sum of the "net asset value consisted of net assets on the balance sheet, internal reserves such as reserve for price fluctuations and contingency reserve, and unrealized gains (losses) etc., of assets not marked to market," and the "present value of future expected profits derived from currently held insurance policies".

  
  
  

  • ‌The group consolidated ESR, calculated based on our internal model, decreased from the end of the previous fiscal year, due to an increase in lapse risk associated with rising domestic interest rates and investment in Viridium, but continues to maintain a sufficient level of financial soundness.

    • ESR (Internal model)

      	2025/03	2026/03	Change
      Consolidated	243%	222%	(21pt)

      [Reference] ESR (Internal model)

      ・The ESR (Economic Solvency Ratio) is an economic value-based indicator of financial soundness adopted by our group. It is calculated based on our internal model developed in consideration of the risk characteristics

      of our group. ESR is calculated by dividing the economic value-based net assets (surplus) by the quantified risk

      amount (economic capital) using the internal model. This differs from the solvency margin ratio.

      ・The Group has long used ESR based on its internal model as one of the key management indicators, including to ensure financial soundness and capital adequacy.

      
      
      

• ‌Annualized premiums of new policies decreased year-on-year, despite increases in Taiyo Life's sales agent channel and at Daido

  Life, due to lower sales through the bancassurance channel, among other factors.

• Annualized premiums of policies in force increased from the previous fiscal year-end, driven by the steady accumulation of new policies, etc.

  • Annualized premiums of new policies*1

    (Billions of yen)

  • Annualized premiums of policies in force*1

    (Billions of yen)

    		FY2024	FY2025	Change
    Sum of three companies		213.2	206.5	(3.2%)
    	Medical benefits, living benefits, and others	43.3	44.3	+2.2%
    Taiyo Life		47.2	44.4	(5.9%)
    	Medical benefits, living benefits, and others	20.2	20.4	+1.2%
    Daido Life		76.4	78.9	+3.3%
    	Medical benefits, living benefits, and others	20.8	23.6	+13.0%
    TDF		89.6	83.1	(7.2%)
    	Medical benefits, living benefits, and others	2.2	0.2	(90.4%)

    		2025/03	2026/03	Change
    Sum of three companies		1,703.9	1,751.8	＋2.8%
    	Medical benefits, living benefits, and others	308.8	319.9	＋3.6%
    Taiyo Life		566.9	546.9	(3.5%)
    	Medical benefits, living benefits, and others	141.6	146.6	＋3.5%
    Daido Life		812.7	819.6	＋0.8%
    	Medical benefits, living benefits, and others	157.5	163.8	＋4.0%
    TDF		324.2	385.2	＋18.8%
    	Medical benefits, living benefits, and others	9.6	9.5	(1.1%)

    [Reference] Key performance indicators *1 (set in line with each company's management targets)

    (Billions of yen)

    	Taiyo Life			Daido Life			TDF
    	Annulized premiums of protection-type policies *2			Policy amount *3			Annulized premiums of policies
    New policy sales results	FY2024	FY2025	Change	FY2024	FY2025	Change	FY2024	FY2025	Change
    	21.9	22.0	+ 0.4%	5,145.2	5,322.1	+ 3.4%	89.6	83.1	(7.2%)
    Policy in force sales results	2025/03	2026/03	Change	2025/03	2026/03	Change	2025/03	2026/03	Change
    	167.7	171.1	+ 2.0%	46,967.5	47,336.0	+ 0.8%	324.2	385.2	+ 18.8%

    *1 New policy sales results and policy in force sales results include individual insurance and individual annuities. New policy sales results includes net increase from conversion.

    *2 KPI of Taiyo Life which is the sum of protection portion of the annualized premiums mainly excluding savings-type products.

    *3 KPI of Daido Life which is the sum of policy amounts of individual insurance and individual annuities, added by the protection amounts of third-sector products (medical/nursing care/ disability benefits, etc.).

    
    
    

• ‌Income from insurance premiums increased year-on-year, driven by the accumulation of in-force policies and higher ceded reinsurance recoveries, among other factors.

• Core profit increased year-on-year, mainly due to an increase in interest and dividends income, etc. and a decrease in currency hedging costs and other factors.

• Income from insurance premiums ■ Core profit

(Billions of yen)

(Billions of yen)

10.5

169.7

• ‌ Annualized premiums of protection-type new policies increased year-on-year, and annualized premiums of protection-type policies in force increased from the previous fiscal year-end.

  (Billions of yen）

  20.6

  21.9

  22.0

  0

  FY2023

  FY2024

  FY2025

  Annualized premiums of protection-type new policies

(Billions of yen）

171.1

167.7

162.1

2024/03

2025/03

2026/03

• Annualized premiums of protection-type new policies increased year on year, driven by strong sales performance of "Hoken Kumikyoku Best MYWAY Kisei Kanwa plus", launched in December 2025, as well as higher sales force productivity resulting from expansion of sales support functions by branch life counselors and the strengthening of the management structure through a review of branch organization.

• Annualized premiums of protection-type policies in force increased from the previous fiscal year-end, due to a steady progress of new policy sales results.

（Billions of yen）

4,789.8

5,145.2

5,322.1

1,550.5

1,810.8

2,060.8

Disability benefit/ Nursing care benefit

FY2023

FY2024

FY2025

46,637.6

46,967.5

（Billions of yen）

47,336.0

Increased by

¥368.5 billion from 2025/03

Disability benefit/ Nursing care benefit

2024/3

2025/03

2026/03

11,633.5

12,449.1

12,021.6

• New policy amount progressed favorably, supported by efforts to cater to diverse customer needs for coverage by proposing total coverage that includes disability benefits and nursing care benefits in addition to death benefit.

• New policy amount for "disability and nursing care benefit products" continued to increase from FY2024, supported in part by strong sales of "Advanced

  Cancer Coverage J-Type" launched in June 2025.

• Policy amount in force saw a net increase from the previous fiscal year-end due to strong trend in new policy amount.

* "New policy amount" and "policy amount in force" on this page includes critical illness insurance amounts of J-type product, disability protection insurance amounts of

T-type product, nursing-care insurance amounts of Kaigo Relief Alpha, etc., and lump-sum hospitalization amounts of Lump-sum M-type product.

• ‌Annualized premiums of new policies decreased year-on-year and annualized premiums of policies in force increased from the previous fiscal year-end.

  （Billions of yen）

  92.3

  89.6

  83.1

  FY2023

  FY2024

  FY2025

  Annualized premiums of new policies

（Billions of yen）

385.2

324.2

263.0

2024/03

2025/03

2026/03

• Annualized premiums of new policies decreased year-on-year due to a decrease in sales of "Shogai Premium World series (foreign-currency) ", a single-payment whole life insurance.

• Annualized premiums of in-force policies increased from the previous fiscal year-end, due to a decline in lapse and surrender rates resulting from a decrease in policies reaching their target values.

• ‌Adjusted profit decreased year-on-year mainly due to a decrease in investment income of Fortitude.

  (Billions of yen)

  	FY2024	FY2025	Change
  Ordinary revenues	1.8	4.2	+124.4%
  Ordinary expenses	3.8	6.0	+56.6%
  Ordinary profit (loss)	(1.9)	(1.8)	-
  Profit (loss)	(2.7)	(2.1)	-
  Adjusted profit	12.6	10.7	(14.7%)

  
  
  ‌Asset Management Business (TDAM) Non-life [pet] Insurance Business (P&F）

• Operating revenues, ordinary profit and profit increased year-on-year, due to an increase in assets under management from the Group and performance fee occurrence under discretionary investment contracts, etc.

• Ordinary revenues increased year-on-year, due to an increase in premium income. On the other hand, ordinary profit and profit decreased year-on-year due to an increase in insurance claims payment, etc.

(Millions of yen)

*Net operating revenue after deducting payments to distributors and outsourced asset managers.

(Millions of yen)

（Billions of yen）

120.4

651.6

910.2

1,891.6

1,455.4

2026/03

2025/03

• ‌Earnings forecast for the year ending March 31, 2027

  (Billions of yen)

• Shareholder returns

  	FY2025 (Result)	FY2026(Forecast)
  Ordinary revenues (Consolidated) * The figures in square bracket are income from insurance premiums.	3,482.2	3,000.0
  Taiyo Life	1,279.9	1,030.0
  	[983.0]	[800.0]
  Daido Life	1,246.7	1,170.0
  	[855.3]	[870.0]
  TDF	912.8	890.0
  	[784.6]	[720.0]
  Ordinary profit (Consolidated)	257.1	235.0
  Taiyo Life	116.5	94.0
  Daido Life	134.6	136.0
  TDF	12.3	11.0
  Profit (Consolidated)	138.9	135.0
  Taiyo Life	52.2	54.0
  Daido Life	82.2	79.0
  TDF	8.2	8.0
  Group adjusted profit	158.5	172.0

  
  
  
• ‌Consolidated ■ Unrealized gains (losses) (general account)

  		FY2024	FY2025	Change
  Ordinary revenues		3,730.4	3,482.2	(6.7%)
  	Income from insurance premiums	2,579.8	2,635.7	+2.2%
  	Investment income	488.3	747.9	+53.2%
  	Other ordinary revenues	662.3	96.4	(85.4%)
  Ordinary expenses		3,531.8	3,225.0	(8.7%)
  	Insurance claims and other payments	2,968.2	2,309.1	(22.2%)
  	Provision for policy reserves	0.0	259.4	-
  	Investment expenses	216.0	296.0	+37.0%
  Ordinary profit		198.5	257.1	+29.5%
  Extraordinary gains/losses		(3.9)	(40.5)	-
  Provision for reserve for policyholder dividends		25.9	25.4	(1.8%)
  Profit before income taxes		168.6	191.1	+13.3%
  Total income taxes		41.3	51.1	+23.9%
  Profit attributable to owners of parent		126.3	138.9	+10.0%
  Group adjusted profit		140.0	158.5	+13.1%

  (Billions of yen)

  (Billions of yen)

  		Sum of three companies			Taiyo Life
  		2025/03	2026/03	Change	2025/03	2026/03	Change
  Unrealized gains (losses) on securities*1		(468.6)	(960.1)	-	(17.8)	(143.7)	-
  	Domestic bonds	(1,003.5)	(1,698.8)	-	(315.1)	(587.3)	-
  	Domestic stocks	361.8	440.9	+21.9%	204.8	259.4	+26.7%
  	Foreign securities	166.4	286.2	+72.0%	75.2	152.2	+102.4%
  	Monetary trusts	(115.1)	(175.8)	-	-	-	-
  Unrealized gains (losses) on land, etc.*2		183.8	205.2	+11.6%	79.0	87.0	+10.1%

  1.

  2.

  		Daido Life			TDF Life
  		2025/03	2026/03	Change	2025/03	2026/03	Change
  Unrealized gains (losses) on securities*1		(327.7)	(612.0)	-	(123.0)	(204.3)	-
  	Domestic bonds	(682.4)	(1,085.1)	-	(5.9)	(26.3)	-
  	Domestic stocks	157.0	181.5	+15.6%	-	-	-
  	Foreign securities	91.5	134.4	+46.9%	(0.4)	(0.5)	-
  	Monetary trusts	-	-	-	(115.1)	(175.8)	-
  Unrealized gains (losses) on land, etc.*2		104.7	118.2	+12.8%	-	-	-

  2.

  2.

  3.

  1. Securities excluding stocks and interests in partnerships and so forth without market prices.

  2. Figures are basically calculated based on the appraisal price. Those of less important properties are calculated based on the posted price.

  Main factors for increase/decrease:

  1. Increase in interest and dividend income, etc.

  2. Rebound from reinsurance ceded by Taiyo Life in the previous fiscal year, etc.

  3. Losses on sales due to bond replacements, etc.

     
     
     
     • ‌Domestic Life Insurance Business

(Billions of yen)

* Adjusted profit of Daido Life is calculated by adjusting the excess of provision for reserve for price fluctuations to profit.

* Adjusted profit of TDF is calculated by adjusting the valuation gains and losses related to MVA, to profit.

‌Copyright T&D Holdings, Inc. All Rights Reserved.

Copyright T&D Holdings, Inc. All Rights Reserved.