Equity holdings other than those held solely for the purpose of investment

Fundamental perspectives

Our Group holds equity investments as part of asset management related to the life insurance business. the duration of protection offered by our group through life insurance products often spans over long term. For example, it is not uncommon for traditional whole life insurance and annuities to have terms that cover several decades. Under the Insurance Business Act, insurance companies are required to set aside insurance premiums and investment income as financial reserves, to ensure that liabilities on long-term insurance policies are fulfilled. This reserves are called policy reserves and correspond to liabilities in the balance sheet.
The Insurance Business Act stipulates that in addition to underwriting insurance, investment management is a business that is also specific to insurance companies. We believe that life insurance companies, that are even among insurance companies have longer-term stable insurance liabilities, should conduct investment management from a long-term perspective with regard to the amount of policy reserves that are substantially attributable to policyholders.
In each life insurance company within our group, asset management is fundamentally based on ALM (Asset Liability Management), which centers on fixed-income assets. However, at The Dai-ichi Life Insurance Company, Limited, which holds particularly long-term, stable, and large-scale insurance liabilities within the group, a balanced investment approach is adopted. This approach incorporates risk assets such as equities into the investment portfolio, taking into account the liquidity of ultra-long-term bonds that correspond to ultra-long-term liabilities, the interest rate environment, and the diversification effects among asset classes. This is all based on corporate analysis, diversification across industries and individual stocks, and risk management.
As such, the holding of investment equities by each group company engaged in the life insurance business is, in principle, conducted for pure investment purposes as part of asset management corresponding to policy reserves. In the case of equity investments made solely for investment purposes at The Dai-ichi Life Insurance Company, the department responsible for executing such investments—such as the Equity Investment Division—is independent from the sales and marketing departments. It holds full decision-making authority over trade execution. Based on portfolio management principles, decisions are made in accordance with economic rationality, including considerations such as value fluctuations and dividend gains.
On the other hand, equity holdings other than those held solely for the purpose of investment are defined as stocks managed and held primarily for the purpose of achieving strategic business effects through capital and business alliances with issuers, comprehensive business partnerships across a wide range of areas, or acquiring other functions. These stocks are subject to substantive buy/sell decisions by the business planning division or other responsible business units. For each individual holding, we verify the appropriateness of the holding purpose and profitability relative to capital cost, and determine whether to reduce the holding. For listed stocks, an annual review is conducted by the Board of Directors, and the results are disclosed. If the appropriateness or rationality of the holding cannot be recognized, the stock is sold.

Exercising of voting rights

Voting rights of equity holdings other than those held solely for the purpose of investment shall be exercised in the same manner as other shares, and appropriate actions shall be taken in accordance with the voting rights exercise standards that are separately established.

Stewardship Activities

Confirmation of the share-holding situation

■ Basic Approach

The company and Dai-ichi Life Group companies engaging in the life insurance business shall examine the appropriateness of the purpose for holding and the profitability relative to cost of capital for listed equity holdings other than those held solely for the purpose of investment on an individual basis at their meetings of the Board of Directors every fiscal year. If the holding is deemed inappropriate or irrational, the stock will be sold.

■ Result of Confirmation (FY2024)

The Board of Directors of the Company and The Dai-ichi Life Insurance Company, Limited confirmed the appropriateness of the purpose for holding and the profitability relative to cost of capital for listed equity holdings other than those held solely for the purpose of investment on an individual basis.

Possession of The Dai-ichi Life Insurance Company, Limited (As of March 31, 2025)

Equity holding other than those held solely for the purpose of investment
(Dai-ichi Life Holdings, Inc.)

Equity holding for specified purpose

Equity holding other than those held solely for the purpose of investment
(Possession of The Dai-ichi Life Insurance Company, Limited)

Equity holding for specified purpose

Equity holding contributed to the retirement benefit trust

• (Note)
  The information is an extract from the Company's securities report (unofficial translation). For detail, please refer to the Company's securities report (Japanese only).