[Reference]

T&D Insurance Group's Financial Results for the Three Months Ended June 30, 2023

T&D Holdings, Inc.

August 10, 2023

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

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

I. Overview of the Group

II. Domestic Life

III. Diversification of

IV. Earnings Forecasts and

V. Reference

Insurance Business

Business Portfolio

Shareholder Returns

Contents/ Group Structure

Key Highlights

P. 2

I. Overview of the Group

P. 3

II. Domestic Life Insurance Business

P. 6

III. Diversification of Business Portfolio

P. 11

IV. Earnings Forecasts and Shareholder

P. 13

Returns

V. Reference

P. 14

Abbreviations used in this material

C o n s o l i d a t e d ：T&D Holdings (Consolidated)

Sum of three companies ：Sum of three life insurance companies (Taiyo Life, Daido Life and T&D Financial Life)

On April 2024, we will reach the 20th anniversary of T&D Holdings' establishment.

T

D

F

：T&D Financial Life

T D

U

C

：T&D United Capital

T D A M

：T&D Asset Management

P

&

F

：Pet & Family Insurance

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

1

I. Overview of the Group

II. Domestic Life

III. Diversification of

IV. Earnings Forecasts and

V. Reference

Insurance Business

Business Portfolio

Shareholder Returns

Key Highlights

  • Although group adjusted profit decreased year-on-year mainly due to an increase in currency hedging costs, domestic life insurance business was strong due to favorable sales of mainstay products.

Consolidated

Financial

Results

Domestic

Life

Insurance

Business

Closed Book

Business

Items

1Q2022

1Q2023

Change

Change (%)

Factors of Increase/ Decrease

Group adjusted

¥38.6bn

¥28.6bn

(¥10.0)bn

(26.0%)

An increase in investment expenses due to an

increase in currency hedging costs despite a

profit

decrease in payment related costs for COVID-19.

Profit attributable to

A reactionary YoY decline in temporary valuation

(¥59.2)bn

¥18.9bn

+¥78.2bn

-

losses related to foreign reinsurance affiliated

owners of parent

company on accounting resulting from an increase

(net loss)

in U.S. interest rate.

Annualized

¥36.8bn

¥48.3bn

+¥11.5bn

+31.3%

premiums of new

policies

Favorable sales of mainstay products due to an

Annualized

¥1,565.0bn

¥1,582.6bn

increase in sales of single-premium life and

+¥17.6bn

+1.1%

promoting sales activities such as Hybrid-style

premiums of

(2023/03)

(2023/06)

Sales, which combines face-to-face and non-face-

policies in force

to-face sales, and consulting sales responding to

Income from

¥533.1bn

¥557.5bn

+¥24.4bn

+4.6%

customers' needs.

insurance premiums

and others

Core profit

¥41.8bn

¥24.6bn

(¥17.2)bn

(41.3%)

A decrease in investment earnings as a result of an

increase in currency hedging costs despite a

decrease in payment related costs for COVID-19.

Adjusted profit

¥10.8bn

¥9.8bn

(¥0.8)bn

(7.8%)

Generally the same level as the same period of the

(consolidated)

previous year.

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

2

I. Overview of the Group

II. Domestic Life

III. Diversification of

IV. Earnings Forecasts and

V. Reference

Insurance Business

Business Portfolio

Shareholder Returns

1. Profits

Group adjusted

profit

Group adjusted profit decreased by ¥10.0 billion year-on-year to ¥28.6 billion due to an increase in investment expenses as a result of an increase in currency hedging costs despite a decrease in payment related costs for COVID-19. [YoY change: (26.0%)]

¥38.6bn

¥28.6bn

(¥10.0)bn

1Q2022 1Q2023

Profit attributable to owners of parent (net loss)

Profit attributable to owners of parent increased by ¥78.2 billion year-on-year to ¥18.9 billion mainly due to a reactionary decline in temporary valuation losses related to foreign reinsurance affiliated company ("Fortitude") on accounting resulting from an increase in U.S. interest rate.

1Q2022 1Q2023

¥18.9bn

+¥78.2bn

(¥59.2)bn

[Reference]

Group Adjusted Profit

  • The Group comprehensively manages assets and liabilities on the basis of ALM (Asset Liability Management) through the control of risks, including interest risk.
  • On the other hand, temporary valuation gains or losses may be recorded due to the difference of calculating assets and Insurance liabilities. Accordingly, the Group uses group adjusted profit, calculated by reflecting the adjustment of temporary valuation gains or losses, etc.*, as KPI to measure the actual business conditions. Shareholder returns are also provided on the basis of the group adjusted profit.
    • Adjustment is made for valuation gains and losses on reinsurance assets of Fortitude and MVA gains and losses, etc.

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

3

I. Overview of the Group

II. Domestic Life

III. Diversification of

IV. Earnings Forecasts and

V. Reference

Insurance Business

Business Portfolio

Shareholder Returns

2. MCEV/ Value of New Business

  • Group MCEV, one of the indicators for evaluating the corporate value of life insurance companies, increased by ¥199.3 billion from the previous fiscal year-end to ¥3,530.7 billion mainly due to the accumulation of value of new business and rise in domestic and foreign stocks.
  • 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, decreased by ¥6.1 billion year-on-year to ¥40.2 billion mainly due to a change in ultimate forward rate effected at the end of FY2022.

■ MCEV

(Billions of yen)

2023/06

Change

Change (%)

Group MCEV

3,530.7

+199.3

+ 6.0%

■ Value of new business

1Q2023

Sum of three companies

40.2

(Billions of yen)

Change

Change (%)

(6.1)

(13.2%)

Life insurance business

3,626.2

+185.8

+ 5.4%

Taiyo Life

1,126.9

+42.7

+ 3.9%

Daido Life

2,292.6

+70.1

+ 3.2%

Taiyo Life

Daido Life

TDF

10.0

27.9

2.2

(5.2)

(34.4%)

(1.2)

(4.2%)

+0.3

+ 20.3%

TDF

132.2

+5.6

+ 4.4%

Net asset value of business other than life

(95.4)

+13.5

-

insurance business

Note: "Change" is presented in comparison with the previous fiscal year-end.

Note: "Change" is presented in comparison with the same period of the previous fiscal year.

  • 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 fluctuation 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".
  • Net asset value of business other than life insurance business includes temporary valuation gains and losses on accounting associated with Fortitude.

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T&D Holdings Inc. published this content on 10 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2023 06:12:03 UTC.