Financial Analyst Conference Call for the Fiscal Year Ended March 2025
June 2, 2025
Dai-ichi Life Holdings, Inc.
Agenda
Time | Topic | Speaker | Title |
13：00 ～ 13:15 | FY2024 Results & Key KPIs | Taisuke Nishimura | Executive Officer Group Chief Financial Officer |
13:15 ～ 13:25 | Vision for FY2030 | Tetsuya Kikuta | President and Representative Director Group Chief Executive Officer |
13:25 ～ 13:30 | Investment in M&G | Akifumi Kai | Executive Officer Business Head, New Fields of Business |
13:30 ～ 14:30 | Q&A session |
Copyright © 2025 Dai-ichi Life Holdings, Inc. 2
FY2024 Results & Key KPIs
Copyright © 2025 Dai-ichi Life Holdings, Inc. 3
CFO Review (FY2024)
FY Results / Market Evaluation
Results Capital Efficiency Market Evaluation(1)
Group Adj. Profit
Group VNB
FY2024
Adj. ROE
(Accounting)
FY2024
10.7%
(+2.5%pt YoY)
ROEV
(Economic Value)
(1.2)%
Relative TSR
(Mar. 2022 - Mar. 2025)
vs Global 14 peers
5th
+60% from Mar. 2023
¥439.5bn
(38% above the full-year forecast)
¥172.4bn
(62% above the full-year forecast)
Strong in profit and VNB of DL, exceeding the revised forecast
Adj. ROE improved YoY
Kept Superiority in the Relative TSR
(1) Calculated by the Company based on Bloomberg data
Copyright © 2025 Dai-ichi Life Holdings, Inc. 4
CFO Review (FY2024)
Capital Circulation Management /
Impairment risk associated with
rising interest rates
The bonds held to match policy reserves are subject to a unique accounting treatment- valuation based on the amortized cost method- reflecting the financial characteristics of insurance companies.
These bonds may incur losses upon sale due to activities such as bond rebalancing aimed at asset-liability duration matching. From the perspective of preventing loss deferral, impairment recognition is required if their market value declines significantly.
In the event of a decline in market value, we intend to make careful decisions after thoroughly evaluating the advantages and disadvantages of various response measures, including bond replacement involving realized losses, utilization of reserves, and continued holding to maturity.
Even considering the recent rise in interest rates, there remains a certain buffer before any realized valuation losses occur.
Market EvaluationCash Generation / Allocation Risk Control
Strategic Investment（1）
Shareholder
Payouts
From Mar. 2025 onward
Ca.¥275.0bn
FY2024
¥226.7bn
o/w share buybacks ¥100bn
ESR
(Economic Solvency Ratio)
Market Risk Reduction（DL）
(Interest rate and equity risks)
Mar. 2025
210%
(vs. Mar. 2024: Down1%pt
Reduction amount in FY2024
Ca. ¥225.0bn
o/w Equity Risk in DL
Dividend forecast for FY2025: ¥48 per share, +¥14YoY
ca. ¥140.0bn
Balancing shareholder payouts and strategic investments
Level above expectations
based on new ESR standards
(1) Includes investments decided upon but not yet funded.
Copyright © 2025 Dai-ichi Life Holdings, Inc. 5
Economic Solvency Ratio (ESR)
▶ Required capital slightly declined, as the increase in surrender risk due to rising interest rates was offset by decreases such as the sale of equities. Capital decreased, mainly due to the goodwill deduction associated with the Benefit One acquisition. As a result, the ESR stood at 210% as of FY2024, down 1%pt on a
new standard basis.
▶ Considering future outflows such as shareholder returns and the investment in M&G, the ratio is expected to remain around the current range.
ESR (Economic Solvency Ratio) 210%Maｒ. 2025 Down 1％pt
(vs Mar. 2024)
Financial market sensitivities with ESR
ESR as of end of Mar 2025
210%
VNB•Expected existing business
Japanese interest rate 50bps Rise
Japanese interest rate 50bps Drop
(6)%pt
+
5%pt
contribution
(6)%pt
(18)%pt
US interest rate 50bps Rise
(4)%pt
Mar. 2024
2１１%
Mass lapse
Market factors,
Shareholder
payouts
Mar. 2025
US interest rate 50bps Drop
+3%pt
Risk reduction
initiatives
risk
etc.
+17%pt
210%
Australian interest rate 50bps Rise
(0)%pt
Capital
+5%pt
(1)%pt
+3%pt Others (Non-economic
assumptions change,
¥9.3tn
ca.¥(0.15)tn
¥9.2tn
Required Capital
¥4.4tn
Nearly flat
¥4.4tn
DL's risk reduction ca. ¥(225.0)bn
Interest risk
Equity risk
Ultra long JGBs purchase: ca. ¥1.1tn
(30-year JGB equivalent)
Net sales amount of domestic equities: ca. ¥520bn
(market-value basis)
Goodwill deduction, etc.)
Australian interest rate 50bps Drop
Japanese UFR 50bps Drop 10％ decline in stocks and real
estates
Exchange rate 10% yen appreciation
(6)%pt
+1%pt
+0%pt
+0%pt
(Reference) Definition of each lapse risk
Normal lapse risk: Amount of decrease in net assets when a certain level of stress is applied to the
surrender rate over the contract period in the measurement model (J-ICS compliant).
Mass lapse risk: Decrease in net assets in the event of sudden stress on the surrender rate (J-ICS compliant)
Dynamic lapse risk: Risk of losses incurred due to fluctuations in surrender rates for savings products, such as single-payment whole life insurance, due to switching to other financial products in response to changes in market interest rates, etc.
Copyright © 2025 Dai-ichi Life Holdings, Inc. 6
Group Risk Profile Transformation
▶ Interest rate risk continued to decline steadily, and equity risk also decreased compared to FY2023, supported by steady progress in equity sales. While surrender risk increased due to a rise in interest rates-particularly from higher mass surrender risk-the extent of the increase was limited by changes made
to the model.
▶ Overall required capital fell slightly compared to the end of the previous fiscal year, as the increase in insurance risk was offset by a decrease in market risk.
Drivers affecting Required Capital (Risk Amount)
(¥ in trillions)
(＋) Lapse risk ca. +25.0bn
o/w DL surrender risk: ca. +80.0 bn
※Adopt the greater of mass lapse risk and normal surrender risk
End-Mar 2025 Mass lapse risk ca.710.0bn ＞ Normal lapse risk ca.240.0bn End-Mar 2024 ditto ca.630.0bn ＜ ditto ca.230.0bn
risk
(＋) Exchange rate risk ca. +120.0bn
(－) Interest rate risk ca. (240.0)bn
End-Mar (－) Equity risk ca. (130.0)bn etc.
2024
End-Mar 2025
Group Integrated Risk Breakdown(1)
(as of end of Mar. 2025, before diversification effect)
Interest rate risk 2％[5%]
Lapse risk
13％[13%]
Insurance risk
(excl. lapse risk etc.）
21％[20%]
Other risks 6％ [7％]
Market risk
47％
[49%]
Equity risk 21％[23%]
Exchange rate
12％[11%]
Credit risk 13％[11%]
[In parentheses: As of the end of Mar. 2024]
Spread risk 4％[3%]
Market risk | Insurance risk | Credit Risk | Operational risk | Other risks | Diversificatio n effect | Required Capital | |
End-Mar 2025 (New standard) | 3.69 | 2.71 | 0.98 | 0.19 | 0.27 | (3.50) | 4.35 |
End-Mar 2024 (New standard) | 3.85 | 2.58 | 0.83 | 0.26 | 0.30 | (3.43) | 4.40 |
End-Mar 2024 (Old standard) | 3.92 | 2.38 | 0.88 | 0.19 | 0.28 | (3.40) | 4.25 |
Real estate risk
Other market risk 1％[1%]
7％[6%]
Copy
right © 2025 Da
i-ichi Life Holdin
gs, Inc.
(1) Breakdown excludes the exchange rate risk against JPY, associated with the group consolidation. 7
(Ref.) Initiatives on mass lapse risk
▶ Regarding the risk margin that is a fixed value for the mass lapse risk under economic value-based solvency regulations (J-ICS), a model change was made to change MOCE(2) when calculating the mass lapse risk in the internal model (impact on ESR +4.6%pt).
▶ With regard to the assumption of the lapse rate that is set uniformly in the regulatory model, an initial study was conducted in collaboration with
other companies on the possibility that the lapse assumption in the current regulatory model is an excessive risk perception when compared with
the actual results in DL, when referring to past stress events, etc.
Considering the reduction of MOCE when measuring mass lapse risk
Study on lapse assumptions in stress scenarios
In J-ICS, mass lapse risk is measured by the reduction in net assets under Stress Scenario (1)
In the regulatory model, the MOCE(2) before and after stress is the same amount in the calculation of each amount of risk.
Previously, our company ESR was treated in the same way. However, since the risk scenario in the calculation of mass lapse risk is based on the assumption that the contract will cease to exist and it is easy to recalculate the MOCE after stress, we have now changed the model (3)(4) to calculate the mass lapse risk including changes in the MOCE and to enable more precise measurement of the amount of risk.
While J-ICS has a policy of using the same stress factor for mass lapse risk as ICS, the ICS documentation (5) does not fully disclose the basis for setting the stress factor. In the J-ICS document(6), it is stated that "the mass lapse rate is set as a scenario in which the lapse rate rises significantly due to credit insecurity"
Even when past stress(7) materializes, the lapse rate of DL does not rise steadily. The lapse rate varies from company to company, and large companies have low palse rates.
Conducted joint research with other companies on a large lapse model with sufficient quality to be accepted as an internal model in future regulatory ESR.
Annual lapse rates of life insurers（1970-2020）
Risk of large
Amount of risk (currently estimated)
Risk margin(2) (MOCE)
Standard model (before stress)
Standard model (after stress)
Internal model (before stress)
Internal model (after stress)
35%
Market value of liabilities
(currently estimated
+MOCE)
Mass Lapse Risk
Mass Lapse Risk
(
)
Mass lapse stress(1) (Decrease in policies
Curr
Due to model change Group ESR Impact on
+4.6%
MOCE also decreased
MOCE
)
MOCE is the same amount
Mass lapse stress (1)
decrease in policies
es
ent estimat
After model change (Mar. 2025)
Before model change (J-ICS compliant)
30%
25%
20%
15%
10%
5%
0%
Insurer with the highest lapse rate Average among small-scale insurers Average among large-scale insurers Dai-ichi Life
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
（1）Surrender of 30% of all policies (50% for group annuity policies), （2）reflects uncertainty arising from estimation of margins exceeding current projections and future benefit payments, （3）for the calculation of other risk components, fluctuations in MOCE
are not considered, in line with the standard model, （4）stress levels used are the same as those in the standard model, （5）ICS Calibration Paper （6）deliberations toward the finalization of the standards for economic value-based solvency regulations, etc., 8
（7）based on the Insurance Statistics and Life Insurance Business Statistics (1970-2020), including events such as the collapse of Lehman Brothers and a series of life insurer failures. Copyright © 2025 Dai-ichi Life Holdings, Inc.
New Business Results (Group Value of New Business)
▶ VNB of DL and overseas subsidiaries exceeded the full-year forecast. DL saw an increase in figures driven by stronger activity levels following the launch of new products, while the overseas business also progressed well, supported by factors such as the weaker yen.
Total group VNB rose to ¥172.4 bn, up 62% YoY.
(¥ in billions)
New
Group VNB
172.462% above
FY2024 ¥ bn full-year forecast
(¥ in billions)
Annualized Premiums from New Policies (ANP)
¥546.4bn YoY+9%
(excl. exchange rate impact: +6%)
Business Margins
DL
0.2％ 1.7％
(0.5)％ (0.5)％
2.7％
3.4％
Domestic
(9)%
(DL +67%)
Overseas
+62%
(excl. exchange rate impact +52%)
¥172.4bn
60.0
¥106.8bn
73.8
35.0
¥54.5bn
8.8
61.0
44.4
95.0
51.3
54.2
(5.5)
51.3
(5.5)
Ca.¥190.0bn
¥378.7bn
220.7
12.0
96.0
57.6
46.2
301.3
13.1 7.2
229.4
¥345.7bn
121.4
83.6
64.6
13.6
38.5
30.7
50.2
29.1
¥200.7bn
¥279.0bn
13.2
6.7
PLC
¥113.1bn
10.0
¥123.4bn
( F O R E C A S T)
F Y 2 0 2 3 F Y 2 0 2 3 F Y 2 0 2 4 F Y 2 0 2 5
FY 2022 FY 2023 FY 2024
FY 2022 FY 2023 FY 2024
(Old Standard)
(New Standard)
(New Standard)
(Forecast)
Copyright © 2025 Dai-ichi Life Holdings, Inc. 9
Shareholder Payout Policy and Actual Payouts
▶ The sharp increase in Group adjusted profit for FY2024 lifted the dividend per share to ¥137 (up ¥24 YoY).
▶ A share-buyback of up to ¥100 bn has already been announced. The dividend for FY2025 is forecast at ¥48 per share (up ¥15 YoY).
Shareholder Payout PolicyRough guide for Considering flexible total payout ratio additional payouts
Mid-term avg. of 50%
Considerations for additional payout
Result of shareholder payout since FY2022
Image on transition of total payout ratio
Strategical in scale and timing
Cash position of holding company
Group Financial Leverage
Existence of strategic investment opportunities Our stock price, etc.
Share buybacks
FY2022 FY2023
¥204.9bn ¥207.2bn
FY2024
Shareholder payout Total ca. ¥814.0bn
¥226.7bn
(Planned)
ESR Level
Status of market risk and sensitivity reduction
FY2025
(Planned)
Per share
¥48 (forecast)
[Image of Dividend Payout Ratio]
Stable Dividends Based on Profit
＋
[Dividend Payout Ratio]
40% or more 45% or more each FY
Cash Dividend
Total payout yield(1)
Per share
¥86
8.5%
Per share
¥113
5.7%
Per share
¥137
ca.
5.3%
Avg. of Group adjusted profit for past 3 years
As a general policy, no reduction of dividend per share
Dividend yield(1)
3.5%
2.9%
3.0%
4.2%
[Policy on cancellation of treasury stock]
The treasury stock is expected to be cancelled at an appropriate timing unless it is held for any specific reason.
Calculated based on the total number of issued shares exclude treasury stock and stock price at the end of the fiscal year.
10
Copyright © 2025 Dai-ichi Life Holdings, Inc.
Outlook for Cash Positions at HD (Holding Company)
▶ The strategic investment limit set forth in the MTP is generally executed as expected
▶ The Group's internal financing borrowed from DL at the time of the acquisition of Benefit One is expected to be repaid in order to prepare funds for emergencies. We will continue to scrutinize investments in the pipeline with investment discipline.
Changes in HD Cash Position (1) (2)
Profit for FY2024
・M&G Investment Ca. ¥160.0 bn
・Challenger Investment Ca. 80.0 bn etc,
Profit for FY2024 Free Cash (2) (4) (6)
HD Cash Position
Basic Approach to Use of Funds
[Base cash]
As subsidiaries and affiliated companies strengthens its management of surplus capital, from the viewpoint of securing a certain amount of liquidity, etc., approximately ¥100 bn is expected.
Ensuring liquidity on hand of the holding company and implementating necessary capital expenditures
Cash remittance from subsidiaries and affiliated companies
(After deducting interest payments, etc.)
(Dividend remittance)
Remittance rate (3) Ca. 86%
+¥410bn
Shareholder
Patouts
(¥259bn)
(Share buyback) 1,000
Strategic Investments
Profit for FY2025 Free Cash (3)
Dividend Payout
(End of FY2025, Interim Dividends for FY2027)
Ca. (¥190bn)
Ca. + ¥360bn
Repayment of Group internal financing
[Shareholder return] Resources for cash dividends
Remittance [Adj. profit] | Remittance Ratio | Previous year | |
DL(4) | ¥287.1 bn [¥287.1 bn] | 100% | 100% |
PLC (2) | ¥31.1 bn [¥57.4 bn] | 50% | 50% |
TAL(5) | ¥49.8 bn [¥37.4 bn] | 133% | 133% |
Group(7) | Ca. ¥379.8 bn [¥439.5 bn] | Ca. 86% | Ca. 93% |
Ca. ¥380bn
Ca. (¥275bn)
Assumption of an overall remittance rate of ca. 90%.
HD Cash Position (~Mar 2027)
Ca. ¥300bn
[Shareholder return]
Consideration of flexible and additional returns
and/or
[Strategic investment]
Scheduled for FY 2025
Ca. ¥255bn
Repayment source for intra-group financing: ca. ¥130bn (scheduled for repayment in Jun. 2026)
Selective business investment on high-growth, high-capital-efficiency businesses
End of Mar 2025（8） End of Mar 2026 End of Mar 2027
Includes the cash balance and changes thereof at the intermediate holding company, as well as cash held to secure liquidity at the holding company. Excludes minor strategic investments and transfers to subsidiaries that are factored into the business plan.
Transfers from overseas subsidiaries such as the U.S. PLC are partially reclassified as funds received by the holding company in the following fiscal year, similar to domestic subsidiaries.
Calculated using modified profit as the denominator and transfer amounts from each business to the holding company as the numerator.
Includes interim dividends from DL to HD planned in connection with the start of shareholder interim dividends.
Dividends for the fiscal year ending Mar. 2025, the remittance of which is being withheld due to the acquisition of Challenger.
Includes both the retained dividends from the FY2025 earnings and the capital release amount (TAL).
Includes proceeds from the sale of shares in OLI.
Including the financing executed in the second half of FY2024 and various disbursements such as subsidiary remittances and holding costs outlined in the business plan.
Copyright © 2025 Dai-ichi Life Holdings, Inc. 11
Relative TSR
▶ Ranked 5th(1) in relative TSR(2) with 14 peers(3) for the period starting from the end of Mar. 2022.
▶ Our stock price β of the 3-year and 5-year periods have continuously declined due in part to our efforts to reduce the market risks.
TSR | End Mar. 2022- End Mar. 2025 Our stock price β (vs TOPIX, weekly)
第一生命HD
[参考]TOPIX配当込
15社中央値
300
284
250
200
185
150
100
76
50
Dai-ichi Life HD
Median for 15 companies TOPIX including dividends
Max-Min range
DLHD β | as of end of Mar, 2025 DLHD β | as of end of Mar, 2024 DLHD β | as of end of Mar, 2023 DLHD β | as of end of Mar, 2022
200
[5-year β] [3-year β] [1-year β]
1.36
1.33
1.21
1.14
1.20
0.87
0.99 0.96
0.74
0.88
1.19
1.30
Indicates the stock price of each company at the end of Mar. 2022 as 100 (calculated based on Bloomberg data)
Mar. 2022
Mar. 2023
Mar. 2024
Mar. 2025
As of end of Mar, 2025
Total Shareholder Return(TSR) is a performance measure that indicates the total return an investor receives over a specific period. TSR includes both capital gains and dividends
Five domestic insurance companies (Japan Post Insurance, T&D HD, Tokio Marine HD, MS&AD Insurance Group HD, and SOMPO HD) and nine overseas insurance companies (AIA, Aflac, Allianz, AXA, Manulife, MetLife, Prudential (UK), 12
Prudential (US) and Zurich) are set as 14 comparative peers. Copyright © 2025 Dai-ichi Life Holdings, Inc.
[Ref.] DL Asset/Liability Cash Flow Structure and Market Risk Reduction
Fixed Income Assets / Insurance Liabilities Cash Flow
(5-year cumulative/estimate)(1)
[Fixed Income Assets]
Distribution of interest income and redemptions
[Interest Rate Risk Reduction]
Purchase of and replacement with ultra-long-term bonds, duration lengthening and hedging
Steady accumulation of ultra-long-term bonds and replacement for lengthening,
Using part of gains on sales
Yen-denominated bonds and loans
Currency hedged foreign bonds (Currency swap)Assets and Liabilities Net position
+1.5
(0.1)
(0.6)
+0.6
Shortage of assets in ultra-long-term zone (Factors behind existing interest rate risk)
+0.1
considering change in financial markets
Use of swaptions, etc.
FY2024 additional purchase and replacements
ca. ¥0.9tn
(30-year JGB equivalent)
[Equity Risk Reduction]
Sale and hedging
Reduction of equities in line with the
(¥ in trillions)
(1.3) (1.2)
(1.3)
(1.2)
(1.8)
[Interest Rate Risk Reduction]
plan, hedging with derivatives, etc.
FY2024 domestic equities sold
ca. ¥520.0bn
[Insurance Liabilities]
Cash flow distribution
Area for main legacy blocks with high assumed interest rate
(burden of high assumed interest)
Reinsurance ceding of legacy blocks
Proactive restructuring of liabilities structure through strategic reinsurance ceding
FY2024 policy reserve for ceding
￥150.0bn
(ca. ¥1.2tn from cumulative total
since the start of the initiative)
(market value)
Hedging positions*
ca. ¥560.0bn *Total hedging
positions
since FY2020
Using gains on sales
(offset with ceding related expenses)
(1) Cash flows for internal management from fixed income assets and insurance liabilities at the end of March 2025.
Copyright © 2025 Dai-ichi Life Holdings, Inc. 13
(Ref.)Economic Value (Group EV)
▶ Group EV decreased due to the cost increases from inflation and acquisition, partially offset by the increase from new business acquisitions and realization of expected earnings.
▶ EV sensitivities stayed roughly unchanged compared to the end of the previous fiscal year.
Mar.2025
Group EV ¥8,164.6bn(vs Mar. 2024)
¥（346.1)bn
EV Sensitivity to Financial Market Fluctuations
Group EV as of end of Mar 2025
DL
（＋） Yen interest rate (yen bonds / loans) + ¥200bn
(¥ in billions)
Others
PLC
（－） Domestic equities
（－） foreign securities
（－） Other investment gains /losses
（－） Others
¥(270)bn
¥(50)bn
¥ 10bn
¥(100)bn
PLC
DL
Others
Others
DL
Others
Adjustment (incl. FX change)
VNB
Expected existing business contribution
PLC
Economic / non-economic Variances and assumption changes
(Non-Economic Assumptions) (Economic Assumptions)
Total (¥119.6bn )
Total (¥575.5bn)
Total +¥665.3bn
including RFR(DL) +¥46.5bn
RFR+50bps RFR△50bps
Japanese interest rate 50bps Rise
Japanese interest rate 50bps Drop US interest rate 50bps Rise US interest rate 50bps Drop
Australian interest rate 50bps Rise Australian interest rate 50bps Drop
8.2 tn (1.6)％
+1.5％
(0.3)％
+0.6％
(0.9)％
+0.5%
(0.3)%
+0.3%
Mar. 2024
(New standard)
Mar. 2024
(Adjusted)
Mar. 2025
(New standard)
10％ decline in stocks 10％ decline in real estates
DL EV as of end of Mar 2025
RFR+50bps
RFR△50bps Japanese interest rate 50bps Rise Japanese interest rate 50bps Drop US interest rate 50bps Rise
US interest rate 50bps Drop Australian interest rate 50bps Rise Australian interest rate 50bps Drop
10％ decline in stocks
10％ decline in real estates
(6.8)％
(5.2)%
(2.7)%
5.7 tn
(1.1)％
＋1.7％
(0.7)％
＋1.2％
(0.4)％
+0.4％ (0.1)％
+0.1%
(3.3)％
14
Vision for FY2030
Copyright © 2025 Dai-ichi Life Holdings, Inc. 15
Dom国e内stic
事業
Ove海rs外eas
事業
Market risks (interest rate and equity) were further reduced. With a significant increase in profit, capital efficiency improved substantially.
The number of sales reps has increased, contributing to an improving trend in sales performance.
Each business unit made a steady progress
PLC finalized first acquisition deal in two years and executed a large-scale reinsurance. Withdrew from the Thai business(1)
Asset
F資or産ma形tio成n/
Suc承ce継ssion
Declining overseas interest rates have caused the strong sales performance in DFL to level off, but AUM continues to grow steadily
Acquisition and investment deals such as Canyon and Capula(1) have been finalized
New
D新om規a事ins業
PMI of Benefit One is progressing smoothly. The number of customers has
surpassed 10 million
(1) The formal agreement was already concluded in FY2025.
Copyright © 2025 Dai-ichi Life Holdings, Inc. 16
Summary of the First Year of the MTP (Business Strategy)
Toward the second year of the mid-term management plan
▶ Earnings targets (Group Adj. Profit) and capital efficiency improvements (Adj. ROE) are ahead of schedule (ROE remains above 10% in 2025)
▶ Progress toward the FY2026 target is on track. We will revise the target upward and raise our sights as we further strengthen our efforts.
▶ To achieve the vision for 2030, we will work to further improve capital efficiency and transform our business portfolio
Expanding our earnings base
Achieving Group Adj. Profit of Over ¥400 bn, continued from FY2024
Increasing the Group's Cash Generation Capacity
Vision for 2026
Achieving the ROE steadily exceeding the cost of capital
Portfolio management
Strengthening our
management base
Balancing speed of revenue contribution and business growth
Replacing our business portfolio to improve capital efficiency
Further Evolution of Matrix Management to Support Growth
Strengthening Corporate Functions and Shifting talents to Growth Fields
Building a foundation to transform into the insurance service provider
Group adj. profit of ¥450 bn
Total market value, ¥3 tn at the beginning of fiscal 2023, to be doubled
Copyright © 2025 Dai-ichi Life Holdings, Inc.
17
Expansion of group adjusted profit and improvement of capital efficiency
▶ The increase in Group adj. profit pushed the adjusted ROE above the 10 % target. Meanwhile, the rise in domestic interest rates offset the benefits of our risk-reduction efforts, causing the cost of capital to level off. We will therefore continue to reduce risk, mainly by
selling equities.
Relationship b/w capital efficiency and PBR
(1)
H
I
G
E
F
C
J
K
B
L
M
D
A
DLHD
(Mar 2025)
▶ Recognizing the gap between our current position and global top-tier competitors, we intend to secure capital-efficiency targets at an earlier stage. Accordingly, we decided to raise the 2026 targets for both Group adj. profit and adj. ROE, and we will consider to lift the profit target for FY 2030.
(1) Measured based on the Bloomberg consensus as of the end of March 2025
0% 3% 6% 9% 12% 15% 18% 21%
FY2024
～FY2026
～FY2030
Adj. ROE
10.7％
ca.10％
~ over 12%
ca.10％
~ over 14%
2.5
Cost of
Capital
ca.9％
8％
Maintain a stable rate of 8% or less
2.0
Non-insurance
1.5
Non-insurance
Non-insurance
Adj. profit
Overseas
Adj. profit
¥319.4bn
Overseas
¥450.0bn
(original MTP)
¥400.0bn
Overseas
Adj. profit
Consider raising (original MTP)
¥600.0bn
1.0
0.5
Domestic
Domestic
Domestic
0.0
PBR
Capital efficiency
（ROE）
Copyright © 2025 Dai-ichi Life Holdings, Inc. 18
KPI Targets
▶ Regarding the targets of the MTP, we have made updates - taking into account the progress of each business strategy and the current economic environment - in order to close the "gap" toward achieving the ¥6 trillion market
capitalization we aim for in 2026.
KPIs
FY2024
Result
MTP Target (FY2026)
Targeted level
by around FY2030
Economic
RoEV
- ca. 8% in the medium-to long term
Indicators
VNB
¥172.4bn
FY2025: ¥190bn ー
*Expecting to exceed the level
Financial Indicators
Accounting Profits
Cost of Capital
Adjusted ROE Adjusted Profit
Cost of Capital
10.7％
¥439.5bn
9%
１０%
¥400bn
Over 12%
¥450bn～
8%
Stably exceeds ca. 10%
Over 14%
¥600bn
Consider raising Maintain a stable rate
of 8% or less
Market Valuation
Financial Soundness
Relative TSR (vs 14 peers)
Economic Solvency Ratio(1)
#5
210%
Relative advantage
170% - 200%
Non-Financial Indicators
Customers
External
Evaluation
Number of Customers
ESG Composite Indices
Domestic ca.34.55m ppl Overseas ca.41.00m ppl(2)
DJSI(3)Asia Pacific Index
MSCI(4) AA
Domestic ca.37.50m ppl(1)
Overseas ca.45.00m ppl ー
Industry-leading evaluation scores in Japan
19
（1） With the addition of Benefit One as a subsidiary, the company's target and actual figures were added as the number of domestic customers. (2) As of the end of March 2025 (3) Dow Jones Sustainability Indices (4) MSCI ESG Rating
Copyright © 2025 Dai-ichi Life Holdings, Inc.
Pipeline of capital strategy projects
▶ Achieving both speed of revenue contribution and business growth through carefully selected growth investments in insurance and surrounding areas with expertise
▶ Aiming for a highly efficient business portfolio that is diversified by risk and region, aiming for disciplined capital allocation
Until 2024 2025 2026 After 2027
FY 2024 results
FY 2026 target
Domestic business
○■ Efficiency improvement projects, including the ceding of blocks with a high capital load in DL
¥315bn
(Over 70%)
¥265bn(1)
(slightly less than 60%)
Overseas
Acquisition of ShelterPoint (PLC)
Investments in Challenger
(TAL)
U.S. acquisition business utilizing PLC
¥115bn
¥160bn
business
Projects in consideration of profit contribution timing, region, and strategic significance (insurance domain)
(about 25%)
(ca. 40%)
Investment in M&G
Non-Insurance
(Asset Management)
Investment in
Investment in
Additional investment in Capula
became
subsidiary(1)
¥10bn
¥25bn
Non-Insurance
(New business Domains)
Additional investment in real estate Collaboration with Marubeni
Benefit One
became subsidiary
AM with capital light and high cash generation capacity
Projects that contribute to strengthening customer contact in the ecosystem (Benefit Station)
of which ¥6bn from AM business (2%)
of which ¥20bn from AM business (ca. 5%)
〇 Confirmed deals ■Investment pipelines
Total ¥439.5bn Total ¥450bn
(1) Includes amortization and related costs at HD (2) An option to acquire a 51% controlling interest remains unexercised as of the end of May 2025.
Copyright © 2025 Dai-ichi Life Holdings, Inc. 20
Investment in M&G
▶ We have decided to invest in M&G plc, a leading U.K. player in the European asset management and life insurance markets (investment amount: ca. GBP850mn (ca. ¥160bn))
▶ Through this transaction, we will be able to secure higher IRR compared to internal hurdle rate targets (return outperforming our own share buybacks), based on M&G's stable earnings generated from its highly cash-generative closed-book life insurance business, which result in earlier recovery of our investment
Transaction Rationale
Investment Target | M&G plc |
Estimated Investment Amount(1) | ca. GBP850mn (ca. ¥160bn) (full amount to be covered by cash on hand) |
Method of acquisition | Acquisition via on-market purchase, etc. |
Equity Stake | ca. 15.0%(2) (expected to qualify for the equity-method) |
Contribution to HD Cash | Projected to add roughly ¥16bn per annum |
Impact on ESR | ca. 3-7% decrease |
Deal Overview and Financial Impact on Group
① Cash-flow generation
Investment is expected to be recovered in ca. １０ yrs(3)
With high dividend yields
② Financial stability and high growth potential
M&G Key Financials
Market Capitalization(1) （LSE-listed） | ca. GBP5.3bn |
Dividend Yield(1) | ca. 9.0% |
Stable and highly-predictable revenues
from closed life insurance books
Growth potential
from Asset Management and BPA (bulk purchase annuity) business
Calculated based on the stock price and exchange rate as of May 28, 2025.
On-market purchase of 10% or less shares initially, followed by another on-market purchase of the remaining ca. 5% upon approval from relevant authorities
estimation as of May 28, 2025
Copyright © 2025 Dai-ichi Life Holdings, Inc. 21
Investment in M&G - Strategic Rationale
▶ Through the investment in M&G, we will acquire a certain scale of business platform in Europe and evolve into a more global business portfolio
▶ Expect to generate high synergy mainly in the asset management business through collaboration with M&G, which has a strong brand and well-established European client base
Expanding capital-light business
Leveraging alternative asset management platform
Expanding into product distribution network in Europe
While majority of its earnings is currently from the life insurance business, M&G is shifting toward a more capital-light business model through growth in its asset management business especially in private assets, which aligns with our group's strategy
Leveraging alternative asset management capabilities of M&G in our group's insurance product
development
- Alternative AUM in M&G :GBP74bn
Creating synergies through product offerings that leverage M&G's well-established customer base in Europe (retail and institutional investors) and the investment capabilities of our group's asset management companies such as Canyon Partners and Capula
Copyright © 2025 Dai-ichi Life Holdings, Inc. 22
Adjusted Operating Profit(2)
AUM in Asset Management Business
Shareholder Return Policy
（GBP in millions）
788 721
625
797 837
Infrastructure
Real Estate 34
PE
6 15
81 Equity
Tax
Life Insurance Business(3)
Asset Management
Business（3）
701
330
660
315
607
264
755
242
746
289
Private・ Structured Credit 20
Investment in Asset Management
business: strategic M&A focused on private assets
GBP315bn
Of which Private Asset is
8 Cash and other
14
GBP2.7bn
Investment in
Life Insurance business: capital allocation for BPA business expansion etc.
2025 - 2027
Total capital generated
Corporate business
(243) (254) (246)
(200) (198)
Publicly offered bonds
GBP74bn
Multi-asset
Dividends
and others
2020 2021 2022 2023 2024
138
Efficiency improvement
Stable earnings from its closed-book Ca. 25% is in growth-oriented private assets High shareholder payouts through dividends
(1)Created based on public sources (2) Fiscal years 2020-2021 are based on IFRS4, while fiscal years 2022-2024 are based on IFRS17. This indicator is adjusted from IFRS profit to exclude short-term fair value fluctuations and other factors.
(3) Reporting segments were reclassified to Life & AM in 2023, covering results from 2022-2024. Life Adjusted Operating Profit for 2020-2021 refers to the previous classification of "Retail and Savings".
Copyright © 2025 Dai-ichi Life Holdings, Inc. 23
（Ref.）Overview of M&G (1)
(Ref.) Investment in Challenger Limited through our Australian subsidiary, TAL
▶ TAL, our subsidiary in Australia, will acquire 15.1% of the issued shares of Challenger Limited ("Challenger") from MS&AD Insurance Group Holdings, Inc.
▶ Challenger is a leading company in the Australian individual annuity market. By investing in Challenger, we expect to benefit from the growth potential of
the retirement market. (Assuming equity-method accounting, the investment is expected to contribute roughly ¥6-8 bn to annual earnings)
Details
Key Aspects of the Australian Retirement Market
Investment Target | Challenger Limited （An Australian financial group with life insurance and asset management businesses under its umbrella） |
Listing Market | Australian Securities Exchange (ASX) |
Investment Amount | JPY 80.0bn （Full amount will be covered by TAL's available funds.） |
Investment Ratio | 15.1％ （The equity method is expected to be applied after receiving regulatory approval.） |
Estimated Closing Date | Scheduled for the second half of FY2025（1） |
Impact on Group ESR | Limited impact expected |
Australia has one of the world's leading retirement annuity markets, ranking 4th globally.(3)
The asset size of participants aged 65 and over has recently exceeded AU$ 1.1tn (ca. JPY 110tn)
The population aged 65 and over is expected to continue increasing, along with their assets,
reaching over AU$ 3tn by 2041.
【Life insurance market in AUS】 【Outlook for the retirement market in AUS】
Challenger
Individual annuity market
Individual protection market
Protection Retirement
Retail
(incl. IFA)
Profile of Challenger
Net Assets | AU$ 3,848m(2) |
Number of Employees | 566(2) |
Adjusted Profit (After Tax) | AU$ 417m (FY2024) |
AUM | AU$ 127bn (FY2024) |
Group
(superannuation)
TAL
Group Insurance market
The expansion of the retirement market
through Superannuation is expected.
2024
2041
AU$ 1.1tn
AU$ 3.0tn
(1) Subject to approval and authorization from relevant authorities (2) As of the end of Dec 2024 (3) Ranking of pension market asset size
Copyright © 2025 Dai-ichi Life Holdings, Inc. 24
(Ref.) Investment in Challenger Limited through our Australian subsidiary, TAL
Strategic Significance
▶ By entering the retirement-income business-expected to grow as the population ages-TAL can capitalize on its strong competitive position in group insurance while capturing new earnings opportunities in this market.
▶ Sharing TAL's strong relationships with pension funds and its administrative expertise with Challenger's capabilities in product development, ALM, and asset management will enable both companies to respond quickly to the anticipated market expansion.
TAL's Growth Trajectory
Strategic Significance for TAL
Since joining our Group, TAL has solidified its No. 1 share in Australia's protection market through:
Offering group insurance within superannuation funds, and
Two major acquisitions-Suncorp Life and Westpac Life.
)
To drive the next stage of domestic growth, TAL aims to capture profits from the promising retirement-income market.
By drawing on each other's strengths, the two companies will seek to collaborate on complementary propositions that will result in the growth of both companies in Australia's insurance and retirement markets.
No. 1 in protection
(Ca.40 % share in group protection)
No.1 in
individual annuity
Became Suncorp Life our subsidiary Acquisition
Westpac Life Acquisition
Equity investment
Group adjusted profit of ¥160bn from overseas businesses in FY 2026.
2011
2019
2022
2025（1）
Capture of profits from Profit expansion in the protection business the retirement-income market
(No. 1 in protection)
(No.1 in individual annuity)
Asset-management expertise
Product design expertise
Insurance administration capabilities
Large customer base in group segment
(1) Assume to receive regulatory approval
Copyright © 2025 Dai-ichi Life Holdings, Inc. 25
(Ref.) Additional Investment in U.K.-based Capula
▶ We have decided to make an additional investment of about 10.3% in Capula Investment Management LLP and Capula Management Limited (together, "Capula"), a leading U.K.-based alternative asset manager with strengths in global bond investing and derivative-based hedging strategies. (Dai-ichi Life already holds roughly 4.7%.)
▶ Since Dai-ichi Life's initial investment in 2014, we have deepened our mutual understanding through fund investments and personnel exchanges. This new stake will foster closer collaboration in product development that leverages Capula's world-class expertise in hedging strategies, while also positioning us to capture growth in the
expanding alternative-assets market.
Capula's Performance in the Alternative Asset Market
Deal Overview
Investment Target | Capula Investment Management LLP and Capula Management Limited (a leading U.K. alternative asset manager) |
Investment Amount | Undisclosed |
Equity Stake | 15 %¹ (expected to qualify for the equity-method) |
Expected Closing Date | May 2025 (planned) |
Contribution to Group Adjusted Profit | Projected to add roughly ¥5 bn in profit per year from the next fiscal year onward² |
Impact on ESR | Limited |
Since its launch in 2005, Capula's flagship fund (GRV) has never had a negative calendar-year return. Even in a low-interest-rate environment, it has generated an average annual return of 8.28 % (about 4.8
× on a multiple-of-invested-capital basis).
Product Performance (Annualized Net Returns as of end-Dec 2024)
1-year | 3-year | 5-year | Since Inception | |
Global Relative Value (GRV) | 6.35% | 9.19% | 6.99% | 8.28% |
Multi Strategy (MSF) | 5.80% | 10.28% | - | 10.28% |
Capula - Company Profile
* nothing in this presentation is an offer or invitation to invest in any Capula investment product or service. Any such offer would be made only through the formal offering documents, and only where permitted by applicable law. Data relating to Capula and its funds has not been reviewed or approved by Capula.
AUM | ＄31.8bn（3） |
Number of employee | 408(3) |
Potential Ways Our Group Can Leverage Capula
™
Diversifying business risk(low correlation with traditional assets and credit risk)
Collaboration that takes advantage of Capula's strong affinity with
quantitative investing(e.g., joint product development)
(1) Including Dai-ichi Life's existing stake (2) Based on a 15 % ownership interest (3) As of end-Dec 2024
* Capula is a trademark of Capula Management Limited. All rights reserved.
Copyright © 2025 Dai-ichi Life Holdings, Inc. 26
(Ref.)Initiatives to Enhance Capital Efficiency
(Utilizing Reinsurance at PLC and Divesting the Thailand business)
▶ PLC executed a strategic reinsurance transaction, ceding ca. $9.7bn in policy reserves of in-force blocks acquired both via its historical retail distribution as well as prior insurance block acquisitions. This transaction represents an opportunity for PLC to improve profitability, financial soundness, and capital efficiency.
▶ We are optimizing our overseas business portfolio to enhance capital efficiency, and-as part of this effort-we have decided to sell our Thai operation (Ocean Life), whose strategic priority has diminished due to factors such as slowing market growth.
Overview of Reinsurance Transaction by PLC (Released on Mar 7, 2025)
Ceding Blocks | Universal Life Insurance with No-Lapse Guarantee (SGUL), Structured Settlement Annuities (SS). (Equivalent to $9.7bn on a statutory reserves basis) |
Reinsurance Arrangement | Modified Co-Insurance Reinsurance（Modco） and Coinsurance Funds Withheld |
Transaction Completion Date | Expected by October 2025 |
Contribution to Group Adj. Profit | Improvement of $30-40m in the medium to long term |
Impact on Group ESR | Ca. 2% improvement |
Divestiture of Thai Business (Ocean Life） (Released on May 13, 2025)
Company to be Divested | Ocean Life Insurance Public Company Limited |
Capital Stock | 2,598 million THB |
Our Group's Ownership Ratio | 24.0% (As of Dec 31, 2024) |
Purchaser | Founder's family of OLI |
Others | Expected to recognize extraordinary income in FY2025 (Exclude from adjusted profit) |
Changes in the Life Insurance Market
（At the time of the investment）
2008
The market has grown at a pace exceeding the country's strong economic growth rate.
Since 2018
The market size has remained
flat, impacted by Covid-19.
In the future
Given Thailand's overall population decline and rapid aging, significant market expansion is unlikely.
in Thailand
Relative priority of efforts has decreased compared to other regions.
Implemented a restructuring of the business portfolio to optimize capital efficiency.
▶ Improve profits and ROE
▶ Free up capital for growth investments
▶ Reduce exposure to market risk
A strategic reinsurance transaction was executed to enhance capital efficiency and lower market risk. The deal covered an in-force policy block- mainly Structured Settlement Annuities (SS) and SGUL - with total reserves of USD 9.7 bn.
Liability
Asset
Ceded Reinsurance
Blocks
Reinsurance Premium
CoR(1)
Reinsurance Payables
Reinsurance Receivables
(1) Cost of Reinsurance
Additional amounts to be recognized from this Transaction
Copyright © 2025 Dai-ichi Life Holdings, Inc. 27
DL's Domestic Equity Risk Reduction Progress
▶ Sale of domestic equities for risk reduction is progressing ahead of 2024 original plan (ca. +30% vs. plan) in FY2024.
▶ Reflecting the revision of Guidelines for the Disclosure of Corporate Affairs, we have clarified our group's policy regarding investments in domestic equities and will disclose it.
Market Value Transition & Outlook of DL's Domestic Equities
Domestic Equity Management in the Group
"Guidelines for the Disclosure of Corporate Affairs" (revised on Jan. 31, 2025) (excerpt) "Pure investment purpose" means that the objective is solely to benefit from the change in value of the stock or from dividends related to the stock. It should be noted that stocks for which circumstancesexist that hinder the sale by the filing company in relation to the issuer - for example, when the issuer of the stock holds shares in the filing company or when the consent of the issuer is required for the sale - are not considered as being held for pure investment purposes.
Market Value
Sales Plan under MTP
Fluctuations, etc.
Over ¥1.2
Assumed Sales in FY2027-FY2030
Over ¥1.2
max
¥1.5
Mar. 2024 Mar. 2025
Mar. 2027
Mar. 2031
¥3.3
¥0.2
¥0.5
¥4.0
(in trillions)
Based on the risk reduction plan, ca. ¥485bn of domestic equities were sold in FY2024 (progress of +30% against the annual plan).
Due to a TOB by an issuing company, the reduction of risk progressed beyond plan, and coupled with the decline in domestic equity prices, the market value as of the end of Mar. 2025 stood at ¥3.3tn, resulting in a decrease in risk amount of ca. ¥200.0bn from the beginning of MTP.
Planned Sales
Dai-ichi Life Group's stance on domestic equity investment
information control and other
▶ Stockholdings at life insurance subsidiaries are, in principle, held for pure investment purposes as part of long-term asset management corresponding to policy reserves.
▶ In managing domestic equities, based on ALM operation and using major indices such as TOPIX
as benchmarks, we aim to earn excess returns against the benchmark and conduct purchases
and sales of stocks for pure investment purposes.
▶ In buying and selling domestic equities, our Group complies with the above guidelines and makes independent buy/sell decisions based on economic rationality by the division responsible for
investment execution to enhance corporate value.
【(Ref.) DL's Stance on Domestic Equity Investment】
Stockholdings are for "pure investment purposes" as general account
management in life insurance.
We aim to earn excess returns relative to major indices such as TOPIX.
Sale plans are formulated and disclosed with the aim of ALM policy and capital cost reduction.
Transactions are conducted at all times in accordance with investment policy and changes in market environment.
We comply with the "Guidelines for the Disclosure of Corporate Affairs" by the
Thorough
related practices
Financial Services Agency.
NEW
24/3末 25/3末 27/3末 31/3末
Copyright © 2025 Dai-ichi Life Holdings, Inc. 28
Vision for 2026: updates on profit target
▶ In light of changes in the economic and business environment, we have raised our profit and capital
efficiency target to support our goal of achieving a corporate value (market cap of ¥6 trillion) by FY2026.
With higher adj. profit and improved capital efficiency,
annual EPS growth of around
10% is expected
EPS
（based on adj. profit）
EPS growth: 10-year CAGR： ca. 10%
468
Target
¥600bn
level
204
¥450bn
or more
or omr e
Group
¥188
¥439.5bn
Adj. ROE
over14％
adj. profit
¥214.7bn
Adj. ROE
10.7％
Adj. ROE
over12％
FY:
2014
2026 2030
2013 2014 201
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
5 2016 2017 2018
(Target)
(Target)
Copyright © 2025 Dai-ichi Life Holdings, Inc. 29
Group Company Name Abbreviation
Non-Insurance Business Domestic Insurance Business Overseas Insurance Business (Asset Management Business, New Fields of Business)
Others
DL DFL NFL
ipet
Dai-ichi Life
Dai-ichi Frontier Life Neo First Life
ipet Insurance
PLC TAL PNZ DLVN DLKH DLMM SUD PDL OLI
Protective Life Corporation TAL Dai-ichi Life Australia Partners Group Holdings
Dai-ichi Life Insurance Company of Vietnam Dai-ichi Life Insurance (Cambodia)
Dai-ichi Life Insurance Myanmar
Star Union Dai-ichi Life Insurance Company PT Panin Dai-ichi Life
OCEAN LIFE INSURANCE PUBLIC COMPANY
BO
AMOne VTX
Benefit One
Asset Management One Vertex Investment Solutions
DLRe
Dai-ichi Life Reinsurance Bermuda
Investor Contact
Dai-ichi Life Holdings, Inc. Investor Relations Group Corporate Planning Unit
Disclaimer
The information in this presentation is subject to change without prior notice. Neither this presentation nor any of its contents may be disclosed or used by any other party for any other purpose without the prior written consent of Dai-ichi Life Holdings, Inc. (the "Company").
Statements contained herein that relate to the future operating performance of the Company are forward-looking statements. Forward-looking statements may include - but are not limited to -words such as "believe," "anticipate," "plan," "strategy," "expect," "forecast," "predict," "possibility" and similar words that describe future operating activities, business performance, events or conditions. Forward-looking statements are based on judgments made by the Company's management based on information that is currently available to it and are subject to significant assumptions. As such, these forward-looking statements are subject to various risks and uncertainties and actual business results may vary substantially from the forecasts expressed or implied in forward-looking statements. Consequently, you are cautioned not to place undue reliance on forward-looking statements. The Company disclaims any obligation to revise forward-looking statements in light of new information, future events or other findings.
Copyright © 2025 Dai-ichi Life Holdings, Inc. 30
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