Financial Results Overview
Ordinary revenues for the interim period were ¥5,119.5 billion (down 1.4%), consisting of premiums and other income of ¥3,331.0 billion (down 7.4%), investment income of ¥1,477.0 billion (up 10.2%), and other ordinary income of ¥311.4 billion (up 22.7%). Although investment income improved at Dai-ichi Life Reinsurance Bermuda Ltd. compared to the same period last year due to narrowing U.S. interest rate spreads, revenue decreased. This was primarily due to a decline in premium income at Dai-ichi Frontier Life, driven by factors such as reduced sales of foreign currency-denominated single-premium products against a backdrop of falling overseas interest rates.
As for ordinary expenses decreased by 0.9%, to ¥4,776.2 billion, consisting of ¥2,953.9 billion (down 13.7%) of benefits and claims, ¥873.4 billion (up 608.7%) of provision for policy reserves and others, ¥279.0 billion (down 54.3%) of investment expenses, ¥494.9 billion (up 0.3%) of operating expenses, and ¥174.8 billion (up 6.1%) of other ordinary expenses, compared to the same period last year. At Dai-ichi Frontier Life, although the provision for policy reserves increased due to strong sales of yen-denominated products amid rising yen interest rates, this was offset by a decrease in surrender refunds. This decrease was primarily due to a rebound effect from increased surrenders in the same period of the previous year, which were mainly driven by policyholders reaching their target amounts.
As a result, ordinary profit decreased by 7.7% to ¥343.3 billion. Furthermore, after extraordinary gains and losses, provision for policyholder dividends, and corporate and resident taxes, as well as adjustments for corporate taxes, net income attributable to owners of the parent for the interim period decreased by 10.1% to ¥209.6 billion.
Financial Position Overview
Total assets at the end of the interim period amounted to ¥70,344.3 billion, up 1.1% from the end of the previous fiscal year. The main asset components were securities at ¥53,351.2 billion (up 0.6%), loans at ¥4,893.3 billion (down 4.6%), tangible fixed assets at ¥1,269.3 billion (down 0.3%), and reinsurance loans at ¥1,885.1 billion (down 8.0%). Total liabilities amounted to ¥66,483.0 billion (up 0.5%). Insurance policy reserves, which constitute the majority of liabilities, amounted to ¥58,647.6 billion (down 1.5%). Total net assets amounted to ¥3,861.3 billion (up 11.3%). Within total net assets, unrealized gains on other securities amounted to ¥1,455.0 billion (up 38.0%) primarily due to increased unrealized gains on domestic stocks held by Dai-ichi Life resulting from the stock market rise. The consolidated solvency margin ratio, which indicates the capacity to pay insurance claims and other payments, increased by 41.4 percentage points compared to the end of the previous fiscal year, reaching 684.8%.
Future Outlook
The Company expects its consolidated ordinary revenues, ordinary profit, net income attributable to shareholders of parent company and its group adjusted profit for the fiscal year ending March 31, 2026 to exceed previous forecasts due mainly to the increase in gains on sales of securities at The Dai-ichi Life Insurance, driven by the robust stock prices.
Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2026
(% represents the change from the previous fiscal year)
| Ordinary Revenues | Ordinary Profit | Net Income Attributable to Shareholders of Parent Company | Net Income per Share | |
|---|---|---|---|---|
| Previous forecast (A) |
million yen 9,162,000 |
million yen 617,000 |
million yen 347,000 |
yen 94.65 |
| Revised forecast (B) | 10,322,000 | 700,000 | 400,000 | 109.84 |
| Change (B-A) | 1,160,000 | 83,000 | 53,000 | |
| Percentage change (%) | 12.7 | 13.5 | 15.3 | |
| (Reference) FY ended March 31, 2025 |
9,873,251 | 719,072 | 429,613 | 115.95 |
- (Note) The Company also revises its previous forecast for group adjusted profit for the fiscal year ending March 31, 2026 from ¥410 billion to ¥470 billion.
For more details, please see the "Revision of Consolidated Earnings and Dividend Forecast for the Fiscal Year Ending March 31, 2026"