Ordinary Revenues by Segment
1. Domestic Insurance Business
Ordinary revenue at the domestic insurance business decreased by ¥346.9 billion to ¥4,337.2 billion (down 7.4% YoY) mainly due to a decrease in other ordinary income at Dai-ichi Frontier Life due to the absence of reversal of policy reserves for ceding to Dai-ichi Life Reinsurance Bermuda Ltd. in the same period of the previous year, although premium and other income increased at Dai-ichi Frontier Life 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.
Segment net income decreased by ¥29.8 billion to ¥174.4 billion (down 14.6% YoY) mainly due to a significant increase in provision for policy reserves and others increased at Dai-ichi Frontier Life resulting from an increase in contingency reserves and regular policy reserves for foreign currency denominated products followed by strong sales of foreign currency-denominated insurance, and an increase in policy reserves in yen conversion due to the depreciation of the yen in the foreign exchange market, etc.
2. Overseas Insurance Business
Ordinary revenues at the overseas insurances business decreased by ¥72.7 billion to ¥1,621.2 billion (down 4.3% YoY) mainly due to a decrease in other ordinary revenues due to the absence of reversals of policy reserves at Protective Life Corporation resulting from changes in the financial market environment. Segment net income increased by ¥84.2 billion to ¥86.5 billion (¥2.3 billion same period last year) 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, contribute to the profits and (3) investment expenses at Dai-ichi Life Reinsurance Bermuda Ltd. decreased due to the absence of losses on investments in trading securities associated with intra-group reinsurance in the same period of the previous year.
3. Other Business
Ordinary revenues at the other business segment decreased by ¥64.2 billion to ¥209.4 billion (down 23.5% YoY), mainly due to a decrease in dividends income from subsidiary, such as Dai-ichi Life, Dai-ichi Frontier Life and the others. Segment net income decreased by ¥66.1 billion to ¥196.4 billion (down 25.2% YoY).