Dai ichi Life: November 14, 2022 Presentation material with voice text

  • This is Taisuke Nishimura, head of the financial planning unit.
  • Thank you for participating in our conference call today.
  • Today I will provide a general overview of our financial results, followed by a question and answer session.
  • Please go to page 2.
  • Here are the top three highlights from today.
  • I will first review the consolidated results. In line with the first quarter, the Group’s adjusted profit decreased year-on-year due to the impacts of COVID-19 has spread in Japan and rising interest rates overseas.
  • DL achieved an increase in year-over-year adjusted earnings. An increase in the positive spread and a decrease in the reinsurance ceded cost offset a deterioration in earnings from the basic insurance business due to an increase in hospital claims related to the COVID-19, etc Meanwhile, the impact of rising interest rates overseas continued to depress DFL and PLC earnings. Consolidated net profit was negatively impacted by VAM-related losses at DFL.
  • Regarding new business performance. Although DL and NFL sales remained weak, DFL sales increased significantly thanks to the increased contribution of DL channel sales amid rising overseas interest rates. Overseas sales of PLC and DLVN were stable. The group’s VNB declined year-on-year, impacted by low sales levels at DL and NFL.
  • Group EEV has declined since end-March 2022 as the positive impact of rising domestic interest rates was offset by the impact of rising overseas interest rates and falling stock markets .
  • Based on these results, annual earnings forecasts and VNB forecasts have been revised. The group’s adjusted profit is expected to be around 240 billion yen due to higher hospitalization payments and higher cost of coverage than initially expected, and lower profit at PLC. The VNB Group’s forecast has been revised down to around 135 billion yen.
  • On the other hand, the dividend forecast per share remains unchanged from the initial forecast of ¥86. Based on discussions with group subsidiaries, at this time we still assume that we will be able to obtain 240 billion yen in payouts from subsidiaries to the holding company based on current year performance. .
  • Finally, on November 7, we announced a takeover bid for ipet Holdings, a leading pet insurance company, to become a wholly owned subsidiary. I will explain this later.
  • Please refer to the next page.
  • Here I will explain the profit indicators to you.
  • At DL, underlying earnings declined year-over-year due to an increase in hospital payments related to the COVID-19[FEMININE.Regardingcapitalandextraordinarygains(losses)andotheritemsanimprovementinexchangegains/lossesexcludinghedgingcostsandoverderivativegainsduetohigherdomesticinterestratesanddepreciationoftheyencontributedtoanincreaseinadjustedincome.
  • Continuing from the first quarter, DFL recorded an increase in regular policy reserves for foreign currency denominated products due to strong sales amid sharply rising interest rates overseas.
  • At PLC, the payment of insurance related to the COVID-19 was weaker than expected at the start of the year and operating income improved significantly. However, non-operating income had a significant negative impact due to valuation losses due to rising interest rates and falling stock markets.
  • TAL’s adjusted profit increased due to an improvement in underlying profit, as well as the recovery of losses incurred in the prior comparable period caused by the flattening of the interest rate curve in Australia.
  • Finally, the consolidated net result was mainly affected by the deterioration of the gains (losses) related to the VAM at DFL. This is mainly explained by a deterioration of the value gains (losses) related to the fluctuation of interest rates resulting from mark-to-market valuation of silver held in trust which aims to mitigate the impact of MVA gains (losses)
  • Please refer to the next page.
  • Next, I will explain the sales performance.
  • Domestic new business sales were up significantly year-on-year, driven by DFL, which increased its appeal of foreign-currency denominated products due to rising overseas interest rates.
  • On the other hand, DL sales remained at low levels due to a reactionary decline in the expansion of sales of new medical insurance products in the prior comparable period and the continued shift of sales activities to DFL products. In addition, it still needs time to inject new initiatives through an integrated reform of the advisory process and the product mix that began in July.
  • For NFL, whose primary product is medical insurance, sales have been persistently weak, primarily at store agents due to the impact of product revisions by competitors and other factors. We launched a new cancer insurance product in September. Although the premium per policy is low compared to medical insurance, the number of sales is growing at a faster rate than expected.
  • Overseas, while personal insurance sales at TAL were weak, sales of PLC insurance products for senior executives were strong, supported by rising interest rates. In addition, DLVN maintained its strong performance in the alternative banking channel, and overseas as a whole increased year-on-year, even excluding the impact of exchange rates.
  • At TAL, the acquisition of the former Westpac Life, which had been announced during the previous fiscal year, was finalized on August 1 and the consolidation began during this second quarter.
  • Please refer to the next page.


Dai-ichi Life Holdings Inc. published this content on November 14, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on November 14, 2022 11:01:02 AM UTC.

Public now 2022


Sales 2023 8,092B
2023 net income 268B
1,923 million
1,923 million
Net debt 2023 883 BC.
6,342 million
6,342 million
PER 2023 ratio 9.16x
2023 return 3.55%
Capitalization 2,484B
17,846 million
17,846 million
EV / Sales 2023 0.42x
EV / Sales 2024 0.44x
# of employees 62,260
Floating 93.7%


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Medium consensus SURPASS
Number of analysts 14
Last closing price ¥2,424.00
Average target price ¥2,915.38
Average Spread / Target 20.3%

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