Financial Results & Earnings Forecast: FY2021

Financial Results Overview

Ordinary revenues of Dai-ichi Life Holdings, Inc. (hereinafter the “Company” or the “Parent Company”) and its consolidated subsidiaries (collectively, the “Group”) for the fiscal year ended March 31, 2022 increased by ¥381.9 billion, or 4.9%, to ¥8,209.7 billion, consisting of (1) ¥5,291.9 billion (11.9% increase) of premium and other income, (2) ¥2,551.1 billion (6.2% decrease) of investment income, and (3) ¥366.6 billion (3.0% decrease) of other ordinary revenues, compared to the prior fiscal year. Premium and other income increased due mainly to an increase in sales at The Dai-ichi Frontier Life Insurance Co., Ltd.
Meanwhile, the Group's ordinary expenses for the fiscal year ended March 31, 2022 increased by 4.7%, to ¥7,618.8 billion, consisting of (1) ¥5,855.7 billion (17.1% increase) of benefits and claims, (2) ¥316.8 billion (67.4% decrease) of provision for policy reserves and others, (3) ¥381.1 billion (16.7% increase) of investment expenses, (4) ¥752.1 billion (9.2% increase) of operating expenses, and (5) ¥312.9 billion (9.1% increase) of other ordinary expenses, compared to the prior fiscal year.
Consequently, the Group's ordinary profit for the fiscal year ended March 31, 2022, compared to the prior fiscal year, increased by ¥38.0 billion or 6.9%, to ¥590.8 billion. Its net income attributable to shareholders of parent company for the fiscal year, which is ordinary profit after extraordinary gains and losses, provision for reserve for policyholder dividends, and total of corporate income taxes, increased by 12.5%, to ¥409.3 billion.
Net income attributable to shareholders of parent company for the fiscal year increased compared to the prior fiscal year. The increase was due mainly to the recognition of the deferred tax assets at the end of the fiscal year at The Dai-ichi Frontier Life Insurance Co., Ltd.

Financial Position Overview

The Group's total assets as of March 31, 2022, compared to March 31, 2021, increased by 3.6%, to ¥65,881.1 billion, mainly consisting of ¥51,504.7 billion yen (1.2% increase) of securities, ¥3,978.5 billion (5.7% increase) of loans and ¥1,159.7 billion (4.2% increase) of tangible fixed assets. The Group's total liabilities as of March 31, 2022 increased by 4.6% to ¥61,472.6 billion, mainly consisting of ¥52,745.9 billion (3.3% increase) of policy reserves and others, compared to March 31, 2021. The Group's total net assets as of March 31, 2022 decreased by 8.3% to ¥4,408.5 billion. Net unrealized gains on securities, net of tax, as of March 31, 2022, which are included in the Group's total net assets, decreased by 21.5% to ¥2,397.9 billion.

Earnings Forecast

The Company forecasts its consolidated ordinary revenues to decrease compared to the previous fiscal year to ¥7,612.0 billion, mainly due to the decrease in investment income, most of which is offset by reversal of policy reserves, as a result having no impact on profit. The Company also forecasts ordinary profit to decrease to ¥512.0 billion and net income attributable to shareholders of parent company to decrease to ¥285.0 billion both mainly due to decrease in gains from reversal of policy reserves resulting from MVA at The Dai-ichi Frontier Life Insurance Co., Ltd.
These forecasts are based on the Company's current expectations, taking into account factors such as the information currently available and past experience, and assuming that interest rates, forward exchange rates and stock prices do not substantially vary from those as of March 31, 2022. Therefore, actual results may substantially differ from the forecasts.