Financial Results Overview
Consolidated ordinary revenues of Dai-ichi Life Holdings for the six months ended September 30, 2023 increased to ¥5,536.7 billion (down 1.5% YoY), consisting of (1) ¥3,682.2 billion (up 11.9% YoY) of premium and other income, (2) ¥1,617.4 billion (down 5.8% YoY) of investment income, and (3) ¥236.9 billion (down 1.5% YoY) of other ordinary revenues. Although premium and other income increased due to the strong sales of foreign currency-denominated insurance, which sold well followed by the upward trend in overseas interest rates from the previous fiscal year, as well as yen-denominated fixed indexed annuities at Dai-ichi Frontier Life, ordinary revenues slightly decreased mainly due to a decrease in other ordinary revenues resulting from the absence of reversals of policy reserves at Dai-ichi Frontier Life and Protective Life Corporation. Ordinary expenses of Dai-ichi Life Holdings for the six months ended September 30, 2023 decreased to ¥5,272.1 billion (down 2.1% YoY), consisting of (1) ¥3,360.4 billion (down 7.8% YoY) of benefits and claims, (2) ¥1,075.6 billion (¥20.1 billion same period last year) of provision for policy reserves and others, (3) ¥247.7 billion (down 72.7% YoY) of investment expenses, (4) ¥434.7 billion (up 8.3% YoY) of operating expenses, and (5) ¥153.5 billion (down 2.1% YoY) of other ordinary expenses. Although provision for policy reserves and others increased significantly at Dai-ichi Frontier Life due to an increase in contingency reserves and regular policy reserves for foreign currency denominated products followed by strong sales of foreign currency-denominated insurance, and an increase in policy reserves in yen conversion due to the depreciation of the yen in the foreign exchange market, etc, ordinary expenses decreased mainly due to a decrease in investment expenses at Protective Life Corporation because of a significant improvement in gains and losses on investments in trading securities from the same period of the previous year resulting from changes in the financial market environment.
As a result of the above, ordinary profit for the six months ended September 30, 2023 increased to ¥264.5 billion (up 12.0% YoY). Net income attributable to shareholders of parent company for the six months ended September 30, 2023 increased to ¥157.4 billion (up 31.1% YoY).
Financial Position Overview
Total assets as of September 30, 2023 increased to ¥65,397.4 billion (up 6.1% from the end of the previous fiscal year), consisting of (1) ¥50,146.8 billion (up 7.4%) of securities, (2) ¥4,745.0 billion (up 9.1%) of loans, (3) ¥1,246.3 billion (up 0.5%) of tangible fixed assets, and (4) ¥1,853.5 billion (up 14.1%) of reinsurance receivable.
Total liabilities as of September 30, 2023 increased to ¥62,393.0 billion (up 5.8% from the end of the previous fiscal year). Policy reserves and others, which account for the majority of liabilities, increased to ¥56,629.4 billion (up 4.3%).
Total net assets as of September 30, 2023 increased to ¥3,004.4 billion (up 12.9% from the end of the previous fiscal year). Net unrealized gains (losses) on securities, net of tax increased to ¥944.6 billion (up 27.6%) mainly due to an increase in unrealized gains on domestic stocks and foreign stocks at Dai-ichi Life.
Earnings Forecast
The consolidated earning forecast fot FY2023 has not been changed from the released earning forecast on May 15, 2023.