Dai-ichi Life Holdings

Financial Results & Earnings Forecast: 2Q

Financial Results Overview

During first half-year, rapid deterioration of global economy due to the spread of COVID-19 forced countries to take measures such as restricting going out and limiting international travel. Toward the end of first half-year, these restrictions were gradually eased, and the economy bottomed out, but recovery remained moderate.
Likewise, in the Japanese economy, consumer spending was hit by self-restraint on outings and other factors, and exports also declined due to sluggish overseas demand. Despite the implementation of policies aimed at normalizing economic activity, the outlook remained uncertain due to stagnant economic activity, particularly in the services industry.
In such business environment, our business results for the first half-year were as follows.

Ordinary revenues for the first half-year declined to ¥3,363.1 billion (down 8.0% YoY). Of ordinary revenue components, premium and other income was ¥2,101.2 billion (down 14.5% YoY), investment income was ¥1,152.6 billion (up 9.4% YoY), and other ordinary revenues were ¥109.2 billion (down 23.9% YoY). Ordinary income decreased mainly impacted by a decline in premium and other income due to self-restraining sales activities at Dai-ichi Life and decline in insurance sales at financial institutions at Dai-ichi Frontier Life following the issuance of a declaration of a state of emergency amid the spread of COVID-19.
On the other hand, ordinary expenses decreased to ¥3,200.3 billion (down 7.6%), including benefits and claims of ¥2,187.9 billion (down 11.5% YoY), provision for policy reserves and others of ¥301.8 billion (up 276.4% YoY), investment expenses of ¥247.9 billion (down 40.6% YoY), operating expenses of ¥327.1 billion (down 2.3% YoY), and other ordinary expense of ¥135.4 billion (down 14.0% YoY).
The decline in investment expenses was mainly attributable to a shift from foreign exchange losses to foreign exchange gains at Dai-ichi Frontier Life.
As a result, ordinary income was ¥162.8 billion (down 15.9%). And after adding extraordinary gains, extraordinary losses, provision for reserve for policyholder dividends, income taxes and income taxes-deferred amount, net income attributable to shareholders of parent company for first half-year was ¥83.3 billion (down 9.2%).

Financial Position Overview

Total assets at the end of the second quarter reached ¥62,804.8 billion (up 4.7% from the end of the previous fiscal year). Of main assets components, securities were ¥50,412.2 billion (up 5.6%), loans were 3,781.2 billion(up 1.8%), and fixed and tangible fixed assets were ¥1,130.5 billion (up 0.4%).
Total liabilities reached ¥58,456.3 billion (up 3.9%). Policy reserves and others, which account for the majority of liabilities, were ¥50,703.5 billion (up 0.4%).
Total net assets were ¥4,348.5 billion (up 15.1%). Net unrealized gains on securities net of tax amounted to ¥2,880.4 billion (up 26.2%), due to mainly an increase in unrealized gains on domestic and overseas stocks at Dai-ichi Life.

Earnings Forecast

Regarding the consolidated earnings forecast for the fiscal year ending March 2021, ordinary profit is expected to reach ¥358 billion and net income attributable to shareholders of the parent company is expected to be ¥184 billion. No change has been made to the consolidated financial forecast announced in the consolidated summary report on August 12, 2020.

Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2021

(% 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, 2021 million yen
6,487,000
%
-8.8
million yen
358,000
%
63.9
million yen
184,000
%
467.3
yen
162.95

For further details refer to "Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2021 (PDF:209KB) Open a page in another window."