Financial Results

for the Six Months Ended September 30, 2023

November 14, 2023

Dai-ichi Life Holdings, Inc.

Contents

⚫

Key Highlights

P.2

⚫ Group Companies Performance Overview

P.10

⚫

Group EEV

P.19

⚫

Reference Data

P.25

Currency Exchange Rates(TTM)

As of end

¥/US$

¥/Euro

¥/AU$

September 2023

¥149.58

¥158.00

¥96.06

June 2023

¥144.99

¥157.60

¥95.77

March 2023

¥133.53

¥145.72

¥89.69

December 2022

¥132.70

¥141.47

¥89.57

September 2022

¥144.81

¥142.32

¥94.17

June 2022

¥136.68

¥142.67

¥93.90

Group Company Name Abbreviation, Equity Share and Fiscal Year

Domestic Insurance Business

Equity Share Fiscal Year

DL

Dai-ichi Life

100％

DFL

Dai-ichi Frontier Life

100％

Apr -Mar

NFL

Neo First Life

100％

ipet

ipet Holdings

100％

Overseas Insurance Business

PLC

[USA] Protective Life Corporation

100％

Jan - Dec

TAL

[Australia] TAL Dai-ichi Life Australia

100％

Apr -Mar

PNZ

[New Zealand] Partners Group Holdings

100％

DLVN

[Vietnam] Dai-ichi Life Insurance Company of Vietnam

100％

DLKH

[Cambodia] Dai-ichi Life Insurance (Cambodia)

100％

Jan - Dec

DLMM

[Myanmar] Dai-ichi Life Insurance Myanmar

100％

SUD

[India] Star Union Dai-ichi Life Insurance Company

45.9%

Apr -Mar

PDL

[Indonesia] PT Panin Dai-ichi Life

40％

OLI

[Thailand] OCEAN LIFE INSURANCE PUBLIC COMPANY

24%

Jan - Dec

DLRe

[Bermuda] Dai-ichi Life Reinsurance Bermuda

100％

Other Business (Asset Management)

AMOne

Asset Management One

49％(Voting rights)

30％(Economic interest)

Apr -Mar

VTX

Vertex Investment Solutions

100％

1

Key Highlights

Profit

Steady progress towards ¥270bn of the full-year forecast, both in Domestic and Overseas

  • Steady progress to achieve 64% of the full-year forecast（Up +24％ YoY）

Group

¥173.2bn

Domestic

▶ Flat, lower profits due to interest and dividends at DL and higher expenses at DFL were offset by improved

gains from core insurance activities. Steady progress to achieve 57% of the full-year forecast

Adj. Profit

Domestic

¥108.7bn

Overseas

▶ Up, due to factors such as an increase in underlying profit and economic fluctuations, etc. at TAL.

Overseas

¥58.6bn

▶ Steady progress to achieve 69% of the full-year forecast

▶ Up +8％ YoY

EEV

¥7.9tn

Group EEV increased from the end of the previous fiscal year due to higher interest rates and

stock prices in Japan and an increase in overseas subsidiaries due to yen depreciation.

Top Line

Growth

New Business

(NB)

DFL sales continued to drive the Group

NB ANP

▶ Up +28％ YoY (excl. FX effects)

¥239.5bn

Domestic

Up +45% - DFL maintained strong sales (not only of US dollar-denominated products but JPY-

Domestic

¥181.9bn

denominated products)

Overseas

¥57.6bn

Overseas

Down (8%) - Decline at DLVN due to lower momentum in Vietnamese bancassurance market.

VNB

▶

Down (92%)

Decreased YoY due to lower sales volume at DL and DLVN, lower YoY sales of management insurance

¥5.0bn

at PLC, and the effect of investment yield assumptions in calculation at DFL and PLC.

We have lowered full-year forecast to approx. ¥25.0bn considering the impact of DL's misstatement

of VNB (announced in September), etc.

2

Group

Overseas

Highlights: Group Adj. Profit (Progress by Domestic and Overseas) Domestic

Others

  • Domestic: Steady Progress

Steady progress at DL (a recovery from COVID-19 payments in the previous fiscal year partially offset the decrease in investment income), despite slow progress at DFL due to an increase in new policy related expenses and provision of reserves resulting from strong sales.

  • Overseas: Steady Progress

Although progress rate remained low at PLC, which recorded a loss from the bankruptcy of FRC(1) in Q1, supported by high progress at TAL, progress overseas business as a whole was close to 70%.

Group Adj. Profit (Domestic / Overseas)

(¥ in billion)

+24%

173.2

5.8

139.8

58.6

31.3

113.2 108.7

Others

Overseas

Domestic

(4.7)

FY2022 FY2023

Q2(YTD) Q2(YTD)

(1)FRC: First Republic Bank

Progress vs. Full-year Forecasts

Group Adj.

（reference）

Profit (¥bn) Progress Change YoY

Group

173.2

64% +24%

Domestic

108.7

57%

(4%)

Steady progress toward full-year forecasts, as lower

interest and dividend income due to reduction in currency

DL

hedged bonds was offset by improvement in insurance-

116.8

64%

+4%

related gains and losses due to the absence of the impact

of the COVID-19 payment.

Slow progress toward the full-year forecast continued

DFL

due to new policy related expenses (agency commissions,

(8.8)

-

-

etc.) and provision of reserves, in line with strong sales.

Overseas

58.6

69%

+86%

Despite the benefit of yen depreciation, progress rate for

PLC

the full year remained low due to the loss recorded in Q1

14.6

37％

-

from the bankruptcy of FRC.

Progress exceeding the full-year forecast due to

TAL

improvement in underlying profit following Q1 and the

32.7

131%

+19%

impact of rising interest rates and yen depreciation.

3

Highlights: Profit - Group Adjusted Profit and Net Income

Group Overseas

Domestic Others

  • Group adj. profit increased by 24.0% YoY, to ¥173.2 bn. DL reported a YoY increase as a decrease in interest and dividends income and a deterioration in gains/losses on derivative transactions were offset by recovery on gains from core insurance activities. DFL posted a YoY decline due to a heavy burden of provision of foreign currency standard policy reserves, etc., reflecting strong sales. PLC and TAL reported a YoY increase due to a reduction in valuation losses (due to higher interest rates) and an increase in underlying profit, respectively.
  • Group net income increased 31% YoY to ¥157.4 bn, despite a loss on interest rate fluctuations included in MVA-related gains/losses at DFL

Drivers affecting Group Adj. Profit

Adj. Profit to Net Income

(¥ in billions)

Domestic (¥4.5bn)

Overseas +¥27.3bn

*Note: This chart shows the figures where the PLC's subsequent events and the profit/loss

(＋) Gains/Losses from sale of

on intra-group reinsurance with DLRe at DFL and NFL are reflected onto each company's

(+) Gains from core

(+) Underlying profit

stand-alone adjusted profit.

securities

insurance activities

(ー) Increase of provision for

(ー) Positive spread

contingency reserves etc.

Amortization

of goodwill

DFL

Others

MVA related

gains(losses), etc.

(＋)DLRe Assets and liabilities valuation adjustments

+4.7

(＋) Equity in earnings of affiliates（3） +2.9 etc.

(+) Gains/Losses on sale of

(+) Decrease of valuation losses

Group

Group

securities, foreign exchange

gain or loss etc.

Adj. Profit

Adj. Profit

Net Income

(－) Derivative transactions gains

FY2023

FY2022

FY2023

Q2(YTD)

Q2(YTD)

Q2(YTD)

DL

DL

DFL

NFL

PLC

TAL

DLVN

Other

Asset

DLRe,

Fundamental Capital,

Overseas

Management

HD, etc.

(Drivers affecting Adj. Profit to net income)

Profit

(1)

etc.(1)

FY2023

142.6

(25.8)

(8.8)

0.7

14.6

32.7

7.4

3.8

1.6

4.1

173.2

Q2(YTD)

FY2022

138.2

(26.3)

5.6

(4.2)

(5.2)

27.4

7.8

1.3

2.4

(7.1)

139.8

Q2(YTD)

  1. Fundamental profit before tax. "DL Capital etc." includes changes in corporate tax, net capital and non-recurrent gains(losses).
  2. As TAL and PNZ have adopted IFRS 17 from FY2023, the prior comparative period (FY2022 Q2(YTD)) figures are restated on IFRS 17 basis in this table.
  3. Gain (loss) arising from the increase in equity interest in Japan Investor Solutions & Technologies Co.,Ltd

(21.3) (5.6) +11.1 157.4

(16.2)

(4.1)

+0.6

120.1

4

Highlights: Drivers affecting Group VNB /Group EEV

Group Overseas

Domestic Others

  • VNB decreased 92% YoY to ¥5.0bn, due to lower sales volume at DL and DLVN, lower sales of management insurance at
    PLC, and the impact of investment spread assumptions at DFL and PLC
  • Group EEV increased by 8% from the FY2023 due to an increase in the value of in-force business in DL, etc. by higher domestic interest rates and stock prices, as well as the realization of expected profits and a significant increase of approx. ¥500bn in the difference between actual results and economic assumptions thanks to the upturn in the financial markets.

Group VNB

(¥ in billions)

(92％)

59.2

Drivers affecting Group VNB /Group EEV

Drivers affecting Group EEV

(¥ in billions)

+7.6％

Difference between Assumptions and result

（Economic Assumptions) Changes

DL

34.2

DFL

NFL

7.0

Overseas

10.7

5.0

3.3

7.1

3.4

(0.2)

(1.5)

FY2022 FY2023

Adjustment

(Including foreign

exchange change, etc.)

Expected

existing business

contribution

VNB (Non-Economic

Assumptions)

Changes

(-) Review of unit cost assumptions（DL）

DFL

Others

PLC

Others

DL

(+) Stock prices rise

+280.0

(domestic)

(+) Interest rates rise

+190.0

(domestic)

（-） Inflation rate rise

(140.0)

etc.

Q2(YTD) Q2(YTD)

Mar-23

Mar-23

Sep-23

5

After Adjustments

Highlights: Revised full-year forecast for VNB

Group Overseas

Domestic Others

  • For Domestic business, in addition to the misstatement (announced in Sep. 2023) and reflection of sales forecasts onwards at DL, other factors included an increase in investment assets which actual investment yields were not reflected in the calculation due to changes in the investment portfolio at DFL and lower VNB margin at NFL. For Overseas business, in addition to the decline in sales volume at DLVN, other factors included the fact that for some of the products in the retirement business at PLC, investment yields that exceeded the discount rates used in EV calculations were not reflected.
  • At DL, although there is a recovery trend in the value of sales revenue including our group products, it is expected to take a certain amount of time for its substantial recovery in sales performance of its own products.

New business factor Decomposition

Revised full-year forecast for VNB

Drivers affecting for each company

（DL Sales reps Channel ）(2)

(¥ in billions)

1.00

0.83

0.84

0.92

0.82

0.74

① （Announced in Sep. 2023）

① (18.5)

Impact of DL VNB misstatement

1.00

(¥ in billions)

DL

0.77

② Reflection of Sales Results in

0.65

0.62

0.59

0.63

② (1.5)

Forecasts

1.00

0.84

0.95

0.83

0.82

0.72

① [DFL]

1.00

Significant growth in sales

① (1.0)

（Thousands)

0.78

0.67

0.74

volume was offset by widening

40

0.65

0.65

DFL/

gap between expected rate of

NFL

return and discount rate used in

37

37

36

EV calculations

35

36

35

② [NFL]

② (4.0)

35

34

Decrease in main products sales

33

32

30

31

31

Revised

① [PLC]

30

Initial

DL

DFL/NFL

Overseas

① (25.0)

Forecast

・Negative factor on calculation

Forecast

Over

in retirement business

25

Revised

10.0

15.0

0.0

・Negative impact by interest

seas

Forecast

rate fluctuation

Initial

30.0

20.0

35.0

② [DLVN]

② (10.0)

20

Revised sales volume forecast

22-Q1

22-Q2

22-Q3

22-Q4

23-Q1

23-Q2

Forecast

(1)Redefined employees with less than one full year of service at the time of the revision of the staffing system implemented in 22/Q1 as first year under the new system.

Sales reps

（1）

(2)Includes actual values related to sales of DL products （3） A proprietary indicator of revenue earned by the sales force. Equivalent to the value of new business

Sales reps (excl. first-year reps)

excluding variable factors in the economic environment.（4） Calculated using the value of operating revenues for each period as the numerator. （5）Denominator is the

number of sales excluding the first year (6) Figures indexed with FY2022 Q1 as 1

Value of sales revenue(3)(5)

(incl. groupproducts )

Value of sales revenue(3)(6)

Value of sales revenue per sales reps(3)(4)(5)(6)

(incl. group products)

Value of sales revenue per sales reps(3)(4)(5)(6)

6

Group

Overseas

Highlights: New Business - New Business and In-force Business ANP Domestic

Others

▶ New business ANP for the Group as a whole increased 29% YoY to ¥239.5 bn (+28% excluding forex impact).

▶ In domestics, DFL continued to maintain high sales volume, especially for US dollar-denominated products and others, which continue to enjoy high interest rates, and led the entire group. NFL also increased YoY, resulting in a 45% YoY increase in overall domestic sales. On the other hand, sales of DL products continued to decrease YoY.

▶ Overseas sales decreased 8% YoY excluding forex (△4% including forex impact) due to the impact of lower sales in the bank channel at

DLVN.

New Business ANP

In-force Business ANP

New Business and In-force Business ANP

FY2022 FY2023 Change Q2(YTD) Q2(YTD) YoY

As of

As of

Change

Mar-23

Sep-23

New Business ANP

(¥ in billions)

+29.1%

(+27.7％ excl. exchange rate impact)

239.5

185.5

Domestic life

protection type products

share

[figures in brackets for DL]

19%

12%

[71%]

[65%]

FY2022 FY2023

Q2(YTD) Q2(YTD)

Domestic Overseas

In-force Business ANP

+5.5%

(+1.3％ excl. exchange rate impact)

4,525.0 4,773.8

As of

As of

Mar-23

Sep-23

Domestic

Overseas

( in billions)

Domestic

125.8

181.9

+44.6%

DL

25.2

22.3

(11.6%)

o/w Third sector

16.3

13.9

(14.6%)

DFL

94.6

149.9

+58.4%

o/w DL channel

25.1

35.7

+42.3%

NFL

5.8

6.3

+8.4%

o/w DL channel

3.7

4.0

+6.3%

ipet

-

3.2

-

Overseas

59.7

57.6

(3.5%)

(8.0%)

PLC

35.4

36.7

+3.5%

(2.4%)

TAL

4.9

6.5

+32.3%

+29.7%

PNZ

-

1.6

+0.0%

+0.0%

DLVN

19.0

12.0

(36.5%)

(38.5%)

DLKH/DLMM

0.28

0.56

+95.3%

+92.0%

+29.1%

Dai-ichi Life Group

185.5

239.5

+27.7%

3,119.6

3,219.4

+3.2%

+1.0%

1,997.7

1,968.2

(1.5%)

701.9

697.0

(0.7%)

964.4 1,106.4 +14.7%

+7.6%

  1. 111.2 (10.9%)
  1. 33.5 +2.9%

1,405.3

1,554.4

+10.6%

+2.1%

680.5

772.3

+13.5%

+3.9%

549.6

593.0

+7.9%

+0.7%

50.0

54.1

+8.1%

+1.5%

124.2

133.5

+7.5%

(1.3%)

0.90

1.31

+45.7%

+33.4%

+5.5%

4,525.0

4,773.8

+1.3%

% change shown lower excludes exchange rate impact

7

FY2023 Group Earnings Forecast

Group Overseas

Domestic Others

  • Ordinary revenues was revised upward mainly due to an increase in premiums and other income of DFL and foreign exchange gains.

Downwardly revised group VNB forecast based on sales results up to Q2.

FY2022

FY2023

Change

Actual

FY2022

FY2023 Forecast

Change

( in billions unless otherwise noted)

Q2(YTD)（3）

Q2(YTD)

YoY

（％）

vs. Forecast

Actual

May. 2023

Revision

vs Mar.2023

Ordinary revenues

5,619.0

5,536.7

(82.3)

(1%)

66%

9,519.4

8,353.0

-

-

Dai-ichi Life

2,068.6

1,933.2

(135.3)

(7%)

54%

4,139.8

3,565.0

-

-

Dai-ichi Frontier Life

2,515.5

2,217.7

(297.7)

(12%)

93%

3,999.2

2,385.0

-

-

Protective (US$ in millions)(1)

8,861

6,975

(1,886)

(21%)

68%

12,931

10,280

-

-

TAL (AU$ in millions)(1)

4,280

4,608

+ 327

+ 8%

56%

8,331

8,290

-

-

Ordinary profit

236.1

264.5

+ 28.4

+ 12%

57%

410.9

465.0

-

-

Dai-ichi Life

221.2

212.0

(9.1)

(4%)

61%

353.5

349.0

-

-

Dai-ichi Frontier Life

(11.4)

(38.6)

(27.2)

-

-

13.9

19.0

-

-

Protective (US$ in millions)(1)

(49)

11

+ 61

-

4%

190

260

-

-

TAL (AU$ in millions)(1)

380

467

+ 87

+ 23%

120%

567

390

-

-

Net income(2)

120.1

157.4

+ 37.3

+ 31%

58%

192.3

273.0

-

-

Dai-ichi Life

111.9

116.8

+ 4.8

+ 4%

64%

165.6

183.0

-

-

Dai-ichi Frontier Life

(10.6)

(31.0)

(20.4)

-

-

6.4

15.0

-

-

Protective (US$ in millions)(1)

(38)

8

+ 47

-

4%

138

200

-

-

TAL (AU$ in millions)(1)

285

333

+ 48

+ 17%

123%

Group Adjusted Profit

139.8

173.2

+ 33.3

+ 24%

64%

Group VNB

59.2

5.0

(54.2)

(92%)

20%

Dividends per share ()

409

270

-

-

184.4

270.0

-

-

87.8

approx.85.0

approx.25.0

(60.0)

86

86

-

-

(Reference) Fundamental Profit

207.4

215.8

+ 8.3

+ 4%

50%

364.2

approx.430.0

-

-

Dai-ichi Life

138.2

142.6

+ 4.3

+ 3%

51%

257.1

approx.280.0

-

-

(1) Figures for Protective and TAL are disclosed after re-classifying items from Protective and TAL's financial statements under US and Australian accounting standards, respectively to conform to Dai-ichi Life Holdings' disclosure standards.

8

(2) "Net Income" represent "Net income attributable to shareholders of parent company." (3) As TAL have adopted IFRS 17 from FY2023 Q1, the figures for TAL for FY2022 Q2 are restated on IFRS 17 basis.

Dai-ichi Life - Currency Hedged Bond Investment (Balance)

Group Overseas

Domestic Others

  • In response to the high level of currency hedging costs, the plan to sell currency hedged bonds was implemented ahead of schedule. The book value of currency hedged bonds with currency forward contracts fell to less than ¥1tn.
  • As a result of the balance reduction, the full-year forecast for hedging costs has been lowered to approx. ¥70bn, the level forecasted at the beginning of the period. Future balance reductions will be implemented flexibly as needed, in consideration with market interest rates trends.

Breakdown of Currency Hedged Bonds

Gains (losses) on Currency Hedged Bonds

(Carrying amount)

19.1%

Carrying amount share

FY2022

FY2023

Q2(YTD)

Q2(YTD)

in general account

16.8%

Currency

Currency

(Ref.)

Currency bonds

hedged bonds

hedged bonds

（¥ in trillions）

(1)

( in billions)

(unhedged)

Unrealized gains

7.22

Interest, dividends

81.5

32.6

25.4

（losses)

0.50

and other income

6.27

0.12 0.19

Currency hedging cost

(23.2)

(37.0)

-

0.13

10.8%

0.49

Gains (losses) on

Currency hedging

0.19

(150.1)

(48.7)

4.6

sale of securities

accounting impact

3.71

0.58

6.7%

Carrying amount

3,717.3

1,662.4

1,332.1

Book value before

6.39

0.23

Book value

4,114.9

1,766.5

1,281.1

4.9%

currency hedging

5.44

2.22

Unrealized gains（losses)

(397.5)

(104.0)

51.0

accounting impact

0.20

(Currency swap)

1.66

0.31

3.30

0.18

(Ref.)

Book value before

0.60

Book value

1.84

currency hedging

Book value before

0.98

(accounting)

3,532.5

1,586.4

accounting impact

currency hedging

(Currency forward)

△0.39

△0.12

△0.10

accounting impact

Mar-21

Mar-22

Sep-22

Mar-23

Sep-23

(1) Including foreign bond investment trusts

9

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Dai-ichi Life Holdings Inc. published this content on 14 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 14:57:57 UTC.