Financial Results Overview
For the interim consolidated fiscal period, consolidated ordinary revenues decreased to ¥5,191.2 billion (down 6.2% YoY), consisting of (1) ¥3,596.6 billion (down 2.3% YoY) of premium and other income, (2) ¥1,340.8 billion (down 17.1% YoY) of investment income, and (3) ¥253.7 billion (up 7.1% YoY) of other ordinary revenues.
This is mainly due to the loss of foreign exchange gains at the Dai-ichi Frontier Life Insurance Co., Ltd. resulted from the yen's year-on-year appreciation, although investment income increased at Dai-ichi Life Insurance due to an increase in gains on sales of domestic equities, etc.
Consolidated ordinary expenses decreased to ¥4,819.1 billion (down 8.6% YoY), consisting of (1) ¥3,424.6 billion (up 1.9% YoY) of benefits and claims, (2) ¥123.2 billion (down 88.5% YoY) of provision for policy reserves and others, (3) ¥610.1 billion (up 146.2% YoY) of investment expenses, (4) ¥496.3 billion (up 14.2% YoY) of operating expenses, and (5) ¥164.8 billion (up 7.4% YoY) of other ordinary expenses.
Investment expenses increased due to losses on the sale of securities related to the replacement of domestic bonds at Dai-ichi Life Insurance and losses on foreign exchange valuation at The Dai-ichi Frontier Life Insurance Co., Ltd. On the other hand, consolidated ordinary expenses decreased mainly due to a significant decrease in provision for policy reserves and other reserves associated with new businesses at The Dai-ichi Frontier Life Insurance Co., Ltd as a result of the start of ceded reinsurance for the purpose of risk reduction since the previous period.
As a result, consolidated ordinary profit increased to ¥372.0 billion (up 40.7% YoY). Net income attributable to shareholders of parent company increased to ¥233.1 billion (up 48.1% YoY).
Financial Position Overview
Total assets as of the end of the interim consolidated fiscal period increased to ¥69,476.2 billion (up 2.9% from the end of the previous fiscal year). The main components of assets are (1) ¥52,778.9 billion (up 1.9%) of securities, (2) ¥5,057.1 billion (up 7.2%) of loans, and (3) ¥1,222.2 billion (down 0.2%) of tangible fixed assets, as well as (4) ¥2,089.3 billion (up 12.7%) of reinsurance receivables.
Total liabilities increased to ¥65,892.3 billion (up 3.5%). Policy reserves and others, which account for the majority of liabilities, increased to ¥59,486.2 billion (up 4.1%).
Total net assets decreased to ¥3,583.8 billion (down 7.7%). Within total net assets, net unrealized gains (losses) on securities, net of tax, decreased to ¥1,232.6 billion (down 28.9%), mainly due to the realization of gains on the sale of domestic equities at Dai-ichi Life Insurance.
Earnings Forecast
The consolidated earning forecast fot FY2024 has not been changed from the released earning forecast on May 15, 2024.