Financial Results Overview
Consolidated ordinary revenues of Dai-ichi Life Holdings for the Nine Months Ended December 31, 2023 decreased to ¥7,767.3 billion (down 1.2% YoY), consisting of (1) ¥5,704.4 billion (up 12.9% YoY) of premium and other income, (2) ¥1,802.9 billion (down 2.7% YoY) of investment income, and (3) ¥260.0 billion (down 72.7% 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 The Dai-ichi Frontier Life Insurance Co., Ltd., ordinary revenues decreased mainly due to a decrease in other ordinary revenues resulting from the absence of the transient factor, reversals of policy reserves at The Dai-ichi Frontier Life Insurance Co., Ltd. and Protective Life Corporation at the same period of previous year.
Ordinary expenses of Dai-ichi Life Holdings for the Nine Months Ended December 31, 2023 decreased to ¥7,393.4 billion (down 2.0% YoY), consisting of (1) ¥4,987.3 billion (down 2.9% YoY) of benefits and claims, (2) ¥1,160.1 billion (¥11.8 billion at the same period of previous year) of provision for policy reserves and others, (3) ¥355.2 billion (down 70.3% YoY) of investment expenses, (4) ¥655.0 billion (up 6.4% YoY) of operating expenses, and (5) ¥235.5 billion (down 59.9% YoY) of other ordinary expenses. Although provision for policy reserves and others increased at The Dai-ichi Frontier Life Insurance Co., Ltd. due to an increase in provision for contingency reserves followed by strong sales of foreign currency-denominated insurance and the depreciation of the yen in the foreign exchange market, 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 valuation of 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 Nine Months Ended December 31, 2023 increased to ¥373.9 billion (up 19.8% YoY). Net income attributable to shareholders of parent company for the Nine Months Ended December 31, 2023 increased to ¥217.9 billion (up 42.1% YoY).
Financial Position Overview
Total assets as of December 31, 2023 increased to ¥65,782.6 billion (up 6.7% from the end of the previous fiscal year), consisting of (1) ¥50,007.6 billion (up 7.1%) of securities, (2) ¥4,808.0 billion (up 10.6%) of loans, (3) ¥1,248.5 billion (up 0.7%) of tangible fixed assets, and (4) ¥1,842.5 billion (up 13.5%) of reinsurance receivable.
Total liabilities as of December 31, 2023 increased to ¥62,802.2 billion (up 6.5% from the end of the previous fiscal year). Policy reserves and others, which account for the majority of liabilities, increased to ¥57,027.0 billion (up 5.1%).
Total net assets as of December 31, 2023 increased to ¥2,980.3 billion (up 12.0% from the end of the previous fiscal year). Net unrealized gains (losses) on securities, net of tax increased to ¥873.3 billion (up 18.0%) mainly due to an increase in unrealized gains on domestic stocks and foreign bonds at The Dai-ichi Life Insurance Company, Limited.
Earnings Forecast
Regarding the consolidated earnings forecast for the fiscal year ending March 31, 2024, the Company projects that its consolidated ordinary revenues for the fiscal year ending March 31, 2024 will exceed the previous forecast because it expects an increase in premium and other income of The Dai-ichi Frontier Life Insurance Co., Ltd. mainly due to favorable insurance product sales.
The Company's forecast for its consolidated ordinary profit, net income attributable to shareholders of parent company and group adjusted profit for the fiscal year ending March 31, 2024 remains unchanged.
Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2024
(% represents the change from the previous fiscal year)
| Ordinary Revenues | Ordinary Profit | Net Income Attributable to Shareholders of Parent Company | Net Income per Share | ||||
|---|---|---|---|---|---|---|---|
| Fiscal Year ending March 31, 2024 |
million yen 10,201,000 |
% 22.1 |
million yen 465,000 |
% - |
million yen 273,000 |
% - |
yen 282.74 |
For further details refer to "Revision of Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2024"