Dai ichi Life : Presentation(1,679KB

Financial Results

for the Fiscal Year Ended March 31, 2024

May 15, 2024

Dai-ichi Life Holdings, Inc.

Contents

⚫	Key Highlights	P.2
⚫ Group Companies Performance Overview	P.12
⚫	Group EV	P.21
⚫	Reference Data	P.2５

Currency Exchange Rates(TTM)

As of end	¥/US$	¥/Euro	¥/AU$
March 2024	¥151.41	¥163.24	¥98.61
December 2023	¥141.83	¥157.12	¥96.94
March 2023	¥133.53	¥145.72	¥89.69
December 2022	¥132.70	¥141.47	¥89.57

Group Company Name Abbreviation, Equity Share and Fiscal Year

Domestic Insurance Business			Equity Share Fiscal Year
DL	Dai-ichi Life			100％
DFL	Dai-ichi Frontier Life			100％
						Apr -Mar
NFL	Neo First Life			100％
ipet	ipet Holdings			100％
Overseas Insurance Business
PLC	[USA] Protective Life Corporation			100％	Jan - Dec
TAL	[Australia] TAL Dai-ichi Life Australia			100％
						Apr -Mar
PNZ	[New Zealand] Partners Group Holdings			100％
DLVN	[Vietnam] Dai-ichi Life Insurance Company of Vietnam	100％
DLKH	[Cambodia] Dai-ichi Life Insurance (Cambodia)		100％	Jan - Dec
DLMM	[Myanmar] Dai-ichi Life Insurance Myanmar			100％
SUD	[India] Star Union Dai-ichi Life Insurance Company	45.9%		Apr -Mar
PDL	[Indonesia] PT Panin Dai-ichi Life			40％
OLI	[Thailand] OCEAN LIFE INSURANCE PUBLIC COMPANY	24%		Jan - Dec
DLRe	[Bermuda] Dai-ichi Life Reinsurance Bermuda		100％
Other Business (Asset Management)
AMOne	Asset Management One		49％(Voting rights)
30％(Economic interest)
		Apr -Mar
VTX	Vertex Investment Solutions			100％

1

Key Highlights

FY2023 Results		Group adj. profit was significantly higher than FY22 and exceeded forecast of FY23
Group		¥319.3bn	▶ YoY+87％（+18％ of the full-year forecast ）
	Domestic ¥215.5bn	Domestic	▶ Significant increase in both DL and DFL, due to improvement of factors that reduced profits in the
Adj. Profit			previous fiscal year (COVID-19 related payments in DL, and higher expenses related to new business)
	Overseas ¥89.7bn	Overseas	▶ Strong profit progress at TAL and increase in PLC due to the rebound from the impact of the
				US bank collapses
		NB ANP	▶ Up +26％ YoY (excl. FX effects)
New Business		¥502.9bn	Both domestic and overseas sales exceeded those of the previous fiscal year. In particular, DFL maintained
		strong sales throughout the year, leading the group.
(NB)		VNB(1)	▶ Down (30%) YoY
	¥54.5bn
		Decreased from the previous year due to decline at PLC and DLVN. VNB at DL were (5.4)bn.

Capital

Efficiency

Group Adj. ROE

8.2％

Group ROEV(1)

26.8％

▶

▶

Exceeded 8% due to higher adjusted profit, despite the increase of net assets driven by rising market value of domestic stocks.

Increased from the previous fiscal year mainly at DL, due to rising domestic interest rates and stock prices.

FY2024 Forecast	Group adj. profit is expected to increase and Group VNB is expected to improve
			▶ DL's adj. profit is expected to be ca.¥215bn, due to the increase of investment income.
Group Adj. Profit		approx.
	¥340.0bn
	▶ Adj. profit at DFL and overseas business are expected to grow by ca.¥30bn.
			▶ Group VNB is expected to increase by ca.¥50bn YoY, due to recovery of DL sales and increase of new policies
Group VNB		approx.
	¥105.0bn
	at TAL.

Shareholder Payouts Substantial increase in dividends due to increased profit and dividend payout ratio(2)

		FY2023 ¥113	▶ In addition to the increase in Group adjusted profit, the new dividend payout ratio of 40% is applied earlier.
DPS		DPS based on FY2023 result is ¥113, up ¥27 from the previous year.
	FY2024 forecast ¥1２2	▶ DPS based on FY2024 profits is expected to be ¥122 (up ¥9 YoY) based on the profit growth expectation.

(1) Estimated figure （2）The dividend payout ratio of 40% outlined in the mid-term business plan starting from FY2024 will be applied early, based on the dividend payments from the FY2023 results. This will be officially	2
decided with a resolution at the General Meeting of Shareholders held in June 2024.

New business related expenses (agency commissions, etc.) due to strong sales exceeded the full-yearforecast due to an improvement in the second half of the fiscal year, mainly due to the utilization of reinsurance.

TAL

TLIS(Westpac Life), supported the company's performance, and the company exceeded its full-yearforecast by a wide margin.

Solid underlying profit, including profit contributions from

PLC

In addition to the decline in operating income, one-timefactors such as the bankruptcy of FRC at the beginning of the fiscal year have led to the annual budget not being achieved.

Overseas

DFL

full-yearresults exceeding forecasts.

DL

In addition to higher dividend and interest income primarily from stocks and mutual investment funds, strong asset management performance driven by the weaker yen led to

Domestic

Group

Progress vs. Full-yearForecasts

Group	Overseas
Highlights: Group Adj. Profit (Progress by Domestic and Overseas) Domestic	Others

• Domestic: Exceeded forecast

DFL exceeded the full-year forecast due to an improvement in the cost of acquiring new policies in the H2, which had been a downward pressure on profits. DL investment income and expenses remained above the progress through Q3 due to the weaker yen and higher interest and dividend income from increased dividends on stocks and alternative assets.

• Overseas: Achieved forecast

PLC, which posted a loss from the bankruptcy of FRC (1) in Q1, missed its full-year forecast; TAL substantially exceeded its full-year forecast due to solid profit progress, including a larger-than-expected contribution to profits from TLIS (Westpac Life).

Group Adj. Profit (Domestic / Overseas)

Group Adj.		（reference）
Profit (¥bn) Progress Change YoY
319.3	118%	+87%

(¥ in billion)

+87%

319.3

14.0

89.7

215.5	113%	+71%
202.8	110%	+22%
11.5

170.5

47.5

215.5

Others

Overseas

125.8

Domestic

(2.8)

FY2022 FY2023

(1)FRC: First Republic Bank

(2)For adjusted profit by each business or subsidiary, the figures reflecting the PLC's subsequent events and the profit/loss on (3)Profit that includes the block that executed the reinsurance to DLRe.

Core	128%	-
profit(3)
22.3
89.7	106%	+8５%
29.8	75％	+49４％
44.0	176%
+５５%
intra-group reinsurance at DL、DFL and NFL are shown.		3

Amortization

of goodwill

Highlights: Profit - Group Adjusted Profit and Net Income

Group Overseas

Domestic Others

• Group adj. profit increased by 87% YoY, to ¥319.3 bn. DL reported a YoY increase as a decrease in interest and dividends income and a deterioration in gains/losses on derivative transactions were offset by recovery on gains from core insurance activities. DFL's increase YoY due to an improvement in cost burden associated with new policy sales. PLC reported a YoY increase in contribution to Group adj. profit due to a reduction in valuation losses (due to the rising interest rates) recorded in the last fiscal year. TAL increased mainly due to an improvement in underlying profitability, including the profit contribution from TLIS.
• Group net income increased by 85% YoY to ¥320.7 bn, due to the increase of Group adj. profit and DLRe's asset and liability valuation adjustments (other comprehensive income), etc., partially offset by goodwill amortization.

Drivers affecting Group Adj. Profit

Adj. Profit to Net Income

(¥ in billions)

Domestic +¥89.6bn

Overseas +¥40.6bn

(＋) Gains/Losses from sale of securities (ー) Increase of provision for contingency

(+) Gains from core reserves, etc. insurance activities

(ー) Positive spread

*Note: This chart shows the figures where the PLC's subsequent events and the profit/loss on intra-group reinsurance at DL、DFL and NFL are reflected onto each company's stand- alone adjusted profit.

DFL Others MVA related

gains(losses), etc.

(－) Decrease in non-underlying profits due to the decline of interest rates

(＋)DLRe Assets and liabilities valuation adjustments +18.1 etc.

Group

Adj. Profit

FY2022

(+) Gains/Losses on sale of securities, foreign exchange gain or loss, etc.

(－) Derivative transactions gains

1. Decrease of valuation losses due to the rising interest rate recorded in the last year

Group

Adj. Profit

FY2023

Net Income

FY2023

DL DL DFL Fundamental Capital,

Profit(1) etc.(1)

NFL/ipet	PLC	TAL	DLVN	Other	Asset	DLRe,
				Overseas	Management	HD, etc.	(Drivers affecting Adj. Profit to net income)

FY2023

331.0

(128.1)

11.5

1.1

29.8

44.0

14.0

1.9

3.5

10.4

319.3

+1.7 (11.4) +11.1 320.7

FY2022 257.1

(91.4)

(30.4) (9.1)

5.0

28.4

15.1

0.0

3.7

(7.7)

170.5

+23.2 (9.0) (10.9) 173.7

(1)	Fundamental profit before tax. Changes in corporate tax expenses are included in "DL Capital etc.", net of capital and non-recurrent gains(losses).	4
(2)	As TAL and PNZ have adopted IFRS17 from FY2023, the prior comparative period (FY2022) figures are restated on IFRS17 basis in this table.

Highlights: Capital Efficiency - Group Adjusted ROE and Group ROEV

• Group adjusted ROE increased by 3.3%pt YoY to 8.2% due to an increase in Group adjusted profit despite an increase in net assets due to higher stock prices.
• Group ROEV increased mainly in DL due to higher domestic interest rates and higher valuation of domestic equities due to higher stock prices, etc. ROEV increased ｂｙ 22.9%pt YoY(1) to 26.8%.

Group Adjusted ROE

Group ROEV (estimated)

Numerator	Denominator
(Adj.Profit) factors	(Net assets) factors
+4.3％	(1.0％）
	Share

(¥ in billions)

DL	ca.+1,110.0bn
o/w Domestic stocks ca. + 710.0bn
o/w Domestic bonds ca. + 360.0bn
DFL	ca. +95.0bn	etc.

(Economic assumptions) Approx.

changes 8,890.0 +1,260.0

Others

		DFL/NFL	buybacks
			Others		Changes in
			Overseas
	DL			shareholder
					s' equity,
						unrealized
						gains, etc.
	(¥ in billions)		FY2022	FY2023
		Adjusted ROE		4.9%	8.2%
	Group		Adj. Profit		170.5	319.3
			Adj. Net Assets for ROE		3,451.8	3,887.1
		Adjusted ROE		7.3%	8.2%
	DL		Adj. Profit		165.6	202.8
			Adj. Net Assets for ROE		2,264.2	2,497.2
FY2022							FY2023

(1)ROEV for Marｃｈ was based on the old standards.

			(Non-Economic
			assumptions)
			changes
		DFL PLC	Others
7,074.2	7,012.3		Difference
			between
	VNB	DL			assumptions
Adjustment	Expected			and result
existing business contribution
(incl. FX change, etc.)
		Total ca.+¥460bn

	ROEV
	26.8％
Mar-23Mar-23	Mar-24
After	5
Adjustments

Highlights: New Business (Group VNB)

• Group VNB declined 30% YoY to ¥54.5 billion due to sluggish performance of DL, excluding the increase of the group annuity business, and PLC, despite the solid performance of DFL that shifted to the new standard.
• VNB for the three domestic companies are measured on the new standard basis. Although DL's VNB increased YoY due to the increase in group annuities, VNB excluding this impact decreased YoY, and the volume of sales of its primary products is still challenging. DFL's VNB increased YoY due to high sales volume throughout the year. VNB for the overseas companies are calculated based on the existing standard basis. PLC's VNB significantly declined YoY, as the impact of a significant decline in the first half due to technical factors in the calculation of some products was not reversed. Besides that, due in part to sluggish sales in the bank channel as DLVN's sales momentum declined, overall overseas VNB fell sharply by 81% YoY.

Drivers affecting Group VNB(1)

(¥ in billions)

(30%)	Domestic: +47％
Overseas: (81%)

71.2 77.7

Increase/decrease factors for each company

	(＋) Increase due to the AUM growth and rising interest
DL	rate for group annuities, etc.
	（－） Increase in MOCE
DFL	（＋） Increase due to higher sales volume

		46.7
Overseas	46.7
		7.1
NFL	10.0	43.7
DFL	16.9
DL	(2.5)
FY2022	(19.8)
Existing	FY2022
Standard	New
		Standard

(＋) Contribution from group annuities ca. +¥25.0bn

54.5

8.7

4.0

47.2

(5.4)

FY2023

New

Standard

NFL	(－) Decline in new business margins due to the shift to
	smaller lots of products sold
	(－） Expansion of difference between actual investment
PLC
	yields and calculated discount rates
TAL	（＋） Increase due to higher sales volume
	(－） Decline in sales volume due to lower sales
DLVN
	momentum in the banking channel

(1) Estimated figures

6

Highlights: New Business (DL Sales Rep Channel)

Group Overseas

Domestic Others

• In FY２０２３, sales reps' activity volume increased due to the launch of new products from January onward
• Steady increase in # sales reps hired, with bottoming out of # sales reps (# new hires in April 2024 reached 1K for quarter)

DL New Business Performance (Sales Rep Channel)(1)

# Sales Reps (thousand ppl)

1.00

# sales reps

# new hires

1.00

1.00

1.00

1.00

1.00

FY2022

Q1

0.74	0.84	0.75
		Value of sales revenue(2)(3)
		(incl. other subsidiaries' products)

0.59	0.61	0.68
		Value of sales revenue(2)(3)

1.04 0.93 Value of sales revenue

0.72	per sales reps(2)(3)

(incl. other subsidiaries' products)

1.94

Premiums per policy

1.39

1.17

0.97 1.15 # cases per sales reps(3)

0.77		(incl. other subsidiaries' products)
		1.11
0.73	0.73	# cases per sales reps(3)
FY2022		FY2023
Q4		Q4

40			New hires
		for quarter
	# sales reps (total)
	(right axis)
	37		０．９５	1.0
		０．９０
35		36
	34		34	34
30		31	31	31
					0.5
25
		# sales reps (2nd year onwards)
20	FY2022	FY2022	FY2023 Apr.20240
	Q1	Q4	Q4	(preliminary
					results)

(1) Figures indexed with FY2022 Q1 as 1 （2）A proprietary indicator of revenue earned by the sales force. Equivalent to the value of new business excluding variable factors in the economic environment.	7
（3） Denominator is # sales reps excluding the first year

Highlights: ANP (New Business and In-force Business)

Group Overseas

Domestic Others

• New business ANP for the Group as a whole increased 28% YoY to ¥502.9 bn (+26% excluding forex impact).
• In domestics, DFL continued to maintain high sales volume, especially for US dollar-denominated products and others, which continue to enjoy high interest rates, and led the entire group. NFL also increased YoY, resulting in a 35% YoY increase in overall domestic sales. DL also achieved a positive sales increase in the sales rep channel compared to FY2022 by introducing new products.
• Overseas sales increased 10% YoY excluding forex (+3% including forex impact). PLC experienced a YOY increase due to strong sales of annuities, while sales volume at DLVN decreased.

New Business ANP

In-force Business ANP

New Business and In-force Business ANP

New Business ANP

(¥ in billions)

+27.8%

(+25.8％ excl. forex impact)

502.9

393.6

Domestic life

protection type products

share

[figures in brackets for DL]

17%	12%
[76%]	[57%]

FY2022 FY2023

Domestic Overseas

In-force Business ANP

+6.3%

(+2.0％ excl. forex impact)

4,810.8

4,525.0

	As of		As of
	Mar-23		Mar-24
	Domestic		Overseas

			FY2022	FY2023	Change		As of	As of	Change
					YoY		Mar-23	Mar-24
( in billions)
Domestic	280.5	378.7	+35.0%		3,119.6	3,263.4	+4.6%
	+2.0%
	DL	46.2	57.5	+24.5%		1,997.7	1,949.4	(2.4%)
		o/w Third sector	29.5	26.8	(9.1%)		701.9	690.4	(1.6%)
	DFL	220.7	301.2	+36.5%		964.4	1,177.5	+22.1%
		o/w DL channel	59.4	68.4	+15.1%		+13.7%
	NFL	12.0	13.1	+9.4%		124.8	100.1	(19.8%)
		o/w DL channel	7.7	5.1	(33.5%)
	ipet	1.5	6.7	+335.0%		32.5	36.2	+11.2%
Overseas	113.0	124.2	+9.9%		1,405.3	1,547.4	+10.1%
+2.9%		+2.1%
	PLC	64.6	83.6	+29.5%		680.5	766.2	+12.6%
	+21.1%		+5.3%
	TAL	9.9	13.6	+36.8%	549.6	601.3	+9.4%
	+24.4%	(0.5%)
	PNZ	0.7	3.7	+423.2%	50.0	55.9	+11.7%
					+383.9%				+3.4%
	DLVN	36.9	21.9	(40.8%)	124.2	122.0	(1.7%)
	(43.2%)	(5.7%)
	DLKH/DLMM	0.77	1.26	+63.3%	0.90	1.81	+101.8%
	+52.9%	+89.0%
					+27.8%				+6.3%
Dai-ichi Life Group	393.6	502.9	+25.8%	4,525.0	4,810.8	+2.0%

% change shown lower excludes forex impact	8

FY2024 Group Earnings Forecast

Group Overseas

Domestic Others

• Group adjusted profit is expected to be around ¥340.0bn, driven by an increase in DL's gains from the sale of securities, a reduction in new contract costs at DFL, and a rebound from a one-time negative profit impact due to US bank failure at PLC.

		FY2024	YoY Change
( in billions unless otherwise noted)	Forecast		（％）
Ordinary revenues	8,922.0	(2,106.1)	(19%)
	Dai-ichi Life	3,792.0	(295.0)	(7%)
	Dai-ichi Frontier Life	3,399.0	(994.8)	(23%)
	Protective (US$ in millions)(1)	10,680	(2,851)	(21%)
	TAL (AU$ in millions)(1)	7,500	(1,073)	(13%)
Ordinary profit	562.0	+ 23.0	+ 4%
	Dai-ichi Life	403.0	+ 11.7	+ 3%
	Dai-ichi Frontier Life	45.0	+ 24.0	+ 114%
	Protective (US$ in millions)(1)	380	+ 243	+ 177%
	TAL (AU$ in millions)(1)	560	(50)	(8%)
Net income(2)	323.0	+ 2.3	+ 1%
	Dai-ichi Life	218.0	+ 14.2	+ 7%
	Dai-ichi Frontier Life	28.0	+ 12.4	+ 79%
	Protective (US$ in millions)(1)	310	+ 194	+ 167%
	TAL (AU$ in millions)(1)	390	(40)	(9%)
Group Adjusted Profit	approx.340.0	+ 20.7	+ 6%
Group VNB	approx.105.0	+ 50.5	+ 93%
	Dividends per share ()	122	+ 9	+ 8%
(Reference) Fundamental Profit	approx.530.0	+ 4.9	1%
	Dai-ichi Life	approx.280.0	(51.0)	(15%)

FY2022(3)	FY2023	YoY Change	FY2023	Actual
	（％）		vs. Forecast
			Forecast
9,508.7	11,028.1	+ 1,519.4	+ 16%	10,201.0	108%
4,139.8	4,087.0	(52.8)	(1%)	3,565.0	115%
3,999.2	4,393.8	+ 394.6	+ 10%	4,233.0	104%
12,931	13,531	+ 600	+ 5%	10,280	132%
8,320	8,573	+ 253	+ 3%	8,290	103%
387.5	539.0	+ 151.5	+ 39%	465.0	116%
353.5	391.3	+ 37.7	+ 11%	349.0	112%
13.9	21.0	+ 7.0	+ 51%	19.0	111%
190	137	(52)	(27%)	260	53%
423	610	+ 186	+ 44%	390	156%
173.7	320.7	+ 147.0	+ 85%	273.0	117%
165.6	203.8	+ 38.2	+ 23%	183.0	111%
6.4	15.6	+ 9.1	+ 141%	15.0	104%
138	116	(22)	(16%)	200	58%
304	430	+ 126	+ 41%	270	159%
170.5	319.3	+ 148.8	+ 87%	approx.270.0	118%
77.7	54.5	(23.2)	(30%)	approx.25.0	218%
86	113	+ 27		86
363.4	525.1	+ 161.7	+ 44%	approx.430.0	122%
257.1	331.0	+ 73.8	+ 29%	approx.280.0	118%

(1) Figures for Protective and TAL are disclosed after re-classifying items from Protective and TAL's financial statements under US and Australian accounting standards, respectively to conform to Dai-ichi Life Holdings' disclosure standards.

(2) "Net Income" represent "Net income attributable to shareholders of parent company."

(3) As TAL and PNZ have adopted IFRS17, the figures for TAL and PNZ for FY2022 are restated on IFRS17 basis. (Group Adjusted Profit is restated as well.)

9