Ordinary Revenues by Segment
1. Domestic Insurance Business
Ordinary revenue at the domestic insurance business decreased by ¥23.3 billion to ¥6,327.7 billion (down 0.4% YoY) mainly due to a decrease in interest and dividends income at The Dai-ichi Life Insurance Company, Limited. by reducing the balance of foreign currency hedged bonds, and the absence of the transient factor of increased revenues, the reversal of policy reserves for ceding the in-force blocks to Dai-ichi Life Reinsurance Bermuda Ltd. in the same period of the previous year at The Dai-ichi Frontier Life Insurance Co., Ltd., although premium and other income increased at The Dai-ichi Frontier Life Insurance Co., Ltd. due to the consistent and 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.
Segment net income increased by ¥27.5 billion to ¥287.2 billion (up 10.6% YoY) mainly due to a decrease in losses on sales of securities resulting from reduction in sales of foreign currency hedged bonds and a decrease in payments of benefits related to COVID-19 at The Dai-ichi Life Insurance Company, Limited. In addition, rebound from the significant increase in surrender values in the same period of the previous fiscal year resulting from an increase in policies which reached the target level of asset management policy holders had set, also contributed to an increase in segment net income.
2. Overseas Insurance Business
Ordinary revenues at the overseas insurances business decreased by ¥186.6 billion to ¥2,265.5 billion (down 7.6% YoY) mainly due to the absence of the transient factor of increased revenues, reversals of policy reserves at Protective Life Corporation resulting from changes in the financial market environment.
Segment net income increased by ¥57.5 billion to ¥83.3 billion (up 223.5% YoY) because (1) the business of TAL Life Insurance Services Limited (formerly Westpac Life Insurance Services Limited), which was acquired by TAL Dai-ichi Life Australia Pty Ltd in August 2022, performed well, (2) Partners Group Holdings Limited in New Zealand, which was acquired in November 2022, contributed to the profits and (3) Dai-ichi Life Reinsurance Bermuda Ltd. saw an improvement in gains and losses on investments in trading securities compared to the same period of the previous fiscal year.
3. Other Business
Ordinary revenues at the other business segment decreased by ¥64.2 billion to ¥215.9 billion (down 22.9% YoY), mainly due to a decrease in dividends income from subsidiaries, such as The Dai-ichi Frontier Life Insurance Co., Ltd. and the others. Segment net income decreased by ¥64.9 billion to ¥196.2 billion (down 24.9% YoY).