Dai ichi Life : Presentation(444KB

May 15, 2024

Financial Results for the Fiscal Year Ended March 31, 2024

The Dai-ichi Frontier Life Insurance Co., Ltd. (the "Company"; President: Mamoru Akashi) announces. its financial results for the fiscal year ended March 31,2024.

[Contents]
1.	Business Highlights	……… p.1
2.	Policies in Force as of March 31, 2024 by Benefit Type	……… p.3
3.	Investment of General Account Assets	……… p.4
4.	Unaudited Balance Sheet	……… p.10
5.	Unaudited Statement of Earnings	……… p.16
6.	Breakdown of Ordinary Profit (Fundamental Profit)	……… p.18
7.	Unaudited Statement of Changes in Net Assets	……… p.20
8.	Disclosed Claims Based on Insurance Business Act	……… p.21
9.	Solvency Margin Ratio	……… p.22
10.	Status of Separate Account for the Fiscal Year ended March 31, 2024	……… p.23
11.	Consolidated Financial Summary	……… p.24

Please note that this is an unofficial translation of the original disclosure in Japanese.

1. Business Highlights

(1) Annualized Net Premiums

Policies in Force

				(millions of yen except percentages)
		As of March 31,		As of March 31,
		2023	% of March 31,	2024	% of March 31,
			2022 total		2023 total
Individual insurance	549,672	110.8	683,778	124.4
Individual annuities	414,813	103.1	493,790	119.0
Total	964,485	107.4	1,177,569	122.1
	Medical and survival benefits	5,397	176.1	7,827	145.0
New Policies
				(millions of yen except percentages)
		Year ended		Year ended
		March 31, 2023	% of March 31,	March 31, 2024	% of March 31,
		2022 total	2023 total
Individual insurance	94,886	157.6	123,873	130.5
Individual annuities	125,860	218.0	177,407	141.0
Total	220,747	187.2	301,280	136.5
	Medical and survival benefits	2,320	167.6	2,139	92.2

Note: 1. Annualized net premiums are calculated by multiplying the per-premium payments by a multiplier that depends on the premium payment terms. For single-premium contracts, the amount is calculated by dividing the premium by the duration of the policy.

2. "Medical and survival benefits" include annualized net premiums related to medical benefits

(e.g. hospitalization and surgery benefits), survival benefits (e.g. specified illness and nursing care benefits), and premiums related to premium waiver benefits (e.g. excluding disability-related causes

but including causes related to specified illness and nursing care).

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The Dai-ichi Frontier Life Insurance Co., Ltd.

(2) Policies in Force and New Policies

Policies in Force

		As of March 31, 2023			As of March 31, 2024
	Number of policies	Amount	Number of policies	Amount
		% of March	(millions of	% of March		% of March	(millions of	% of March 31,
	(thousands)	31, 2022	31, 2022	(thousands)	31, 2023
	yen)	yen)	2023 total
		total	total		total
Individual insurance	910	110.0	6,649,740	110.1	1,175	129.1	8,919,189	134.1
Individual annuities	771	105.5	3,962,170	104.3	778	100.9	4,416,816	111.5
Group insurance	-	-	-	-	-	-	-	-
Group annuities	-	-	-	-	-	-	-	-

Note: Policy amount in force for individual annuities is equal to the sum of (a) the amount required to fund annuity payments when they commence for annuities that have not yet commenced paying out and (b) policy reserves for annuities that have commenced paying out.

New Policies

Year ended March 31, 2024

	Number of policies			Amount
		% of March			% of March		Net increase
	(thousands)	31, 2023		(millions of yen)	31, 2023	New Business
		from conversions
		total			total
Individual insurance	295	157.0		1,667,071	136.8	1,667,071	-
Individual annuities	268	107.5		1,484,949	114.0	1,484,949	-
Group insurance	-	-		-	-	-	-
Group annuities	-	-		-	-	-	-
			Year ended March 31, 2023
	Number of policies			Amount
		% of March			% of March		Net increase
	(thousands)	31, 2022		(millions of yen)	31, 2022	New Business
		from conversions
		total			total
Individual insurance	188	231.6		1,218,704	200.0	1,218,704	-
Individual annuities	249	245.2		1,302,807	289.5	1,302,807	-
Group insurance	-	-		-	-	-	-
Group annuities	-	-		-	-	-	-

Note: Amount of new policies (new business) for individual annuities is equal to the amount required to fund annuity payments when they commence.

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The Dai-ichi Frontier Life Insurance Co., Ltd.

2. Policies in Force as of March 31, 2024 by Benefit Type

		Individual Insurance	Individual annuities	Group Insurance	Total
		Policies	Amount	Policies	Amount	Policies	Amount	Policies	Amount
		(thousands)	(millions of yen)	(thousands)	(millions of yen)	(thousands)	(millions of yen)	(thousands)	(millions of yen)
Death benefits
	General	1,175	8,919,189	-	-	-	-	1,175	8,919,189
	Accidental	-	-	-	-	-	-	-	-
	Other	-	-	-	-	-	-	-	-
Survival benefits	-	-	778	4,416,816	-	-	778	4,416,816
Hospitalization benefits
	Accidental	-	-	-	-	-	-	-	-
	Illness	-	-	-	-	-	-	-	-
	Other	-	-	-	-	-	-	-	-
Injury benefits	-	-	-	-	-	-	-	-
Surgery benefits	-	-	-	-	-	-	-	-
		Group annuities	Financial insuarance /	Total
		Financial annuities
		Policies	Amount	Policies	Amount	Policies	Amount
		(thousands)	(millions of yen)	(thousands)	(millions of yen)	(thousands)	(millions of yen)
Survival benefits	-	-	-	-	-	-

	Medical care insurance
	Policies	Amount
	(thousands)	(millions of yen)
Hospitalization benefits	-	-

	Group disability
	Policies	Amount
	(thousands)	(millions of yen)
Disability benefits	-	-

Note: Survival benefit amounts for individual annuities are the sum of (a) the amount required to fund annuity payments when they commence for annuities that have not yet commenced paying out and (b) policy reserves for annuities that have commenced paying out.

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The Dai-ichi Frontier Life Insurance Co., Ltd.

3. Investment of General Account Assets

1. Overview of Investment of General Account Assets for the Fiscal Year ended March 31, 2024

A. Operational environment

In FY2023, the Japanese economy saw a boost from increased inbound demand as the aftermath of the COVID-19 pandemic eased. However, personal consumption experienced a downturn due to inflationary pressures, resulting in a recovery that was only moderate in nature. Overseas economies, while slowing down due to continued monetary tightening in various regions, found the U.S. economy to be resilient, thanks to its solid employment and income conditions. Although inflation rates hinted at reaching their peak in several countries, they persisted in gradually easing due to enduring inflationary forces.

Amid these economic conditions, the operational environment was as follows.

[Domestic interest rates]

The yield on 10-year JGBs rose to the 0.7% range, as a result of revisions made by the Bank of Japan (BOJ) to its extensive monetary easing policies such as yield curve control(YCC) and negative interest rate measures.

Yield on ten-year government bonds:	April 1, 2023	0.320%
	March 31, 2024	0.725%

[U.S. Interest Rates and Foreign Currency]

There was a temporary rise in the ten-year U.S. Treasury Note yield to around 5% due to the strengthening view that the high- interest rate policy by the FRB would be prolonged against the backdrop of the steady economy and employment. Despite this, the range of the rise shrunk due to the prevailing outlook for an early interest rate cuts following the slowdown of the price hikes. The yen depreciated to the level of 151 yen per dollar due to the rising U.S. government bond yield and the expectation that the accommodative financial environment would continue for the time being in Japan even though the Bank of Japan would move toward financial normalization.

Yield on ten-year U.S. government bonds:	April 1, 2023	3.468%
	March 31, 2024	4.200%
yen/U.S. dollar:	April 1, 2023	¥133.53
	March 31, 2024	¥151.41

[Australian Interest Rates and Foreign Currency]

The ten-year Australian government bond yield temporarily rose to the vicinity of 5% as the slowdown of the price hikes progressed slowly compared to the U.S. due to the steady Australian economy. Meanwhile, the range of the rise shrunk due to the falling U.S. government bond yield and the declining outlook for an additional interest rate increase by the RBA. As for the Australian dollar, although the yen depreciated to the level of 98 yen per Australian dollar due to the rising Australian government bond yield, the depreciation progressed slowly compared to USD/JPY partly due to a sense of caution regarding the Chinese economy.

Yield on ten-year Australian government bonds:	April 1, 2023	3.297%
	March 31, 2024	3.962%
yen/Australian dollar:	April 1, 2023	¥89.69
	March 31, 2024	¥98.61

B. Investment Policies

In view of the liability characteristics of life insurance policies, assets in the general account are invested in accordance with asset-liability management (ALM) principles with the primary objective of steadily paying annuities, insurance proceeds, and benefits over the long term. As to the yen- and foreign currency-denominated fixed products, those assets are primarily invested in yen-denominated bonds and foreign currency-denominated bonds.

The Company also conducts transactions to reduce guaranteed minimum benefit risk related to individual variable annuities.

C. Investment Results

• Assets 〉

The Company invested primarily in yen-denominated bonds. Foreign-currency denominated insuarance were invested in foreign-currency denominated bonds. The Company also entered into derivative transactions to reduce the guaranteed minimum benefit risk related to individual variable annuities.

• Investment Income and Expenses 〉

Investment income was 837,984 million yen mainly due to foreign exchange gains (565,111 million yen), interest and dividends received (205,002 million yen), and derivative transaction gains (43,763 million yen). Investment expenses were 66,203 million yen, mainly due to losses on sale of securities (64,476 million yen), other investment expenses (1,662 million yen), and losses on redemption of securities (59 million yen).

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The Dai-ichi Frontier Life Insurance Co., Ltd.

(2) Asset Composition

				(millions of yen except percentages)
			As of March 31, 2023	As of March 31, 2024
			Carrying value	%	Carrying value	%
Cash, deposits, and call loans	749,050	9.4	765,608	8.6
Securities repurchased under resale agreements	-	-	-	-
Deposit paid for securities borrowing transactions	-	-	-	-
Monetary claims bought	21,550	0.3	20,240	0.2
Trading account securities	-	-	-	-
Money held in trust	904,519	11.3	879,848	9.9
Securities	6,060,001	76.0	6,799,695	76.6
	Domestic bonds	1,833,660	23.0	2,035,977	22.9
	Domestic stocks	-	-	-	-
	Foreign securities	4,114,497	51.6	4,614,347	52.0
		Foreign bonds	4,114,497	51.6	4,614,347	52.0
		Foreign stocks and other securities	-	-	-	-
	Other securities	111,843	1.4	149,370	1.7
Loans	-	-	-	-
Real estate	737	0.0	681	0.0
Deferred tax assets	52,685	0.7	56,400	0.6
Others	184,087	2.3	357,066	4.0
Reserve for possible loan losses	(59)	(0.0)	(1)	(0.0)
Total	7,972,573	100.0	8,879,540	100.0
	Foreign currency-denominated assets	4,337,627	54.4	4,813,292	54.2
(3) Changes (Increase/Decrease) in Assets
					(millions of yen)
			Year ended March 31, 2023	Year ended March 31, 2024
Cash, deposits, and call loans		(302,699)		16,557
Securities repurchased under resale agreements		-		-
Deposit paid for securities borrowing transactions		-		-
Monetary claims bought		5,544		(1,309)
Trading account securities		-		-
Money held in trust		(170,237)		(24,671)
Securities		(334,897)		739,693
	Domestic bonds		170,100		202,317
	Domestic stocks		-		-
	Foreign securities		(444,620)		499,849
		Foreign bonds		(444,620)		499,849
		Foreign stocks and other securities		-		-
	Other securities		(60,377)		37,526
Loans		-		-
Real estate		(57)		(55)
Deferred tax assets		10,005		3,714
Others		(246,403)		172,979
Reserve for possible loan losses		(43)		58
Total		(1,038,789)		906,967
	Foreign currency-denominated assets		(962,477)		475,665

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The Dai-ichi Frontier Life Insurance Co., Ltd.

(4) Investment Income

			(millions of yen)
		Year ended March 31, 2023	Year ended March 31, 2024
Interest and dividends	175,743	205,002
	Interest from bank deposits	1,371	3,569
	Interest and dividends from securities	173,621	200,587
	Interest from loans	-	-
	Rental income	-	-
	Other interest and dividends	749	845
Gains on trading account securities	-	-
Gains on money held in trust	-	18,349
Gains on investment in trading securities	-	-
Gains on sale of securities	22,488	5,687
	Gains on sale of domestic bonds	17,585	1,375
	Gains on sale of domestic stocks	-	-
	Gains on sale of foreign securities	4,902	4,311
	Others	-	-
Gains on redemption of securities	419	10
Derivative transaction gains	-	43,763
Foreign exchange gains	308,908	565,111
Reversal of reserve for possible loan losses	-	58
Other investment income	0	2
Total	507,560	837,984

(5) Investment Expenses

			(millions of yen)
		Year ended March 31, 2023	Year ended March 31, 2024
Interest expenses	5	5
Losses on trading account securities	-	-
Losses on money held in trust	2,256	-
Losses on investment in trading securities	-	-
Losses on sale of securities	127,625	64,476
	Losses on sale of domestic bonds	6,328	3,854
	Losses on sale of domestic stocks	-	-
	Losses on sale of foreign securities	121,296	60,622
	Others	-	-
Losses on valuation of securities	-	-
	Losses on valuation of domestic bonds	-	-
	Losses on valuation of domestic stocks	-	-
	Losses on valuation of foreign securities	-	-
	Others	-	-
Losses on redemption of securities	305	59
Derivative transaction losses	23,158	-
Foreign exchange losses	-	-
Provision for reserve for possible loan losses	43	-
Write-down of loans	-	-
Depreciation of rented real estate and others	-	-
Other investment expenses	1,878	1,662
Total	155,272	66,203

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The Dai-ichi Frontier Life Insurance Co., Ltd.

(6) Other Information on Investments A. Rates of return

			(%)
		Year ended March 31, 2023	Year ended March 31, 2024
Cash, deposits, and call loans	0.86	2.37
Securities repurchased under resale agreements	-	-
Deposit paid for securities borrowing transactions	-	-
Monetary claims bought	1.00	0.98
Trading account securities	-	-
Money held in trust	(0.24)	2.10
Securities	6.47	11.40
	Domestic bonds	3.65	3.03
	Domestic stocks	-	-
	Foreign securities	7.91	15.77
Loans	-	-
Real Estate	-	-
Total	4.62	9.86
	Foreign investments	7.85	16.10

Notes: 1. Rates of return above were calculated by dividing the net investment income included in net surplus from operations by the average daily balance on a book value basis.

2. "Foreign investments" include yen-denominated assets.

B. Valuation Gains and Losses on Trading Securities

				(millions of yen)
	As of March 31, 2023	As of March 31, 2024
	Carrying value	Valuation gains	Carrying value		Valuation gains
	on the balance	(losses) included in	on the balance		(losses) included in
	sheet	the statement of	sheet		the statement of
	earnings		earnings
Trading securities	904,519	(2,256)	829,755		15,497

Note: Figures in this table include money held in trust and other instruments classified as trading securities.

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The Dai-ichi Frontier Life Insurance Co., Ltd.

C. Fair Value Information on Securities (Other than trading securities)

(millions of yen)

					Book value	Fair value		Gains (losses)
							Gains		Losses
As of March 31, 2024
		Bonds held to maturity	-	-	-		-		-
		Policy-reserve-matching bonds	4,840,476	4,550,468	(290,007)		17,723		307,730
		Stocks of subsidiaries and affiliates	-	-	-		-		-
		Securities available for sale	2,077,786	2,029,552	(48,234)		10,410		58,644
			Domestic bonds	480,814	474,036	(6,778)		627		7,405
			Domestic stocks	-	-	-		-		-
			Foreign securities	1,376,386	1,335,812	(40,574)		7,936		48,510
				Foreign bonds	1,376,386	1,335,812	(40,574)		7,936		48,510
				Foreign stocks and other securities	-	-	-		-		-
			Other securities	149,985	149,370	(615)		1,596		2,212
			Monetary claims bought	20,756	20,240	(516)		-		516
			Certificates of deposit	-	-	-		-		-
			Others	49,842	50,092	249		249		-
	Total	6,918,262	6,580,020	(338,242)		28,133		366,375
		Domestic bonds	2,042,756	2,004,421	(38,334)		11,394		49,728
		Domestic stocks	-	-	-		-		-
		Foreign securities	4,654,921	4,355,895	(299,026)		14,892		313,918
			Foreign bonds	4,654,921	4,355,895	(299,026)		14,892		313,918
			Foreign stocks and other securities	-	-	-		-		-
		Other securities	149,985	149,370	(615)		1,596		2,212
		Monetary claims bought	20,756	20,240	(516)		-		516
		Certificates of deposit	-	-	-		-		-
		Others	49,842	50,092	249		249		-
As of March 31, 2023
		Bonds held to maturity	-	-	-		-		-
		Policy-reserve-matching bonds	4,355,670	4,137,776	(217,893)		29,122		247,016
		Stocks of subsidiaries and affiliates	-	-	-		-		-
		Securities available for sale	1,786,466	1,725,882	(60,583)		4,211		64,795
			Domestic bonds	429,092	422,997	(6,095)		643		6,738
			Domestic stocks	-	-	-		-		-
			Foreign securities	1,221,519	1,169,490	(52,028)		3,554		55,583
				Foreign bonds	1,221,519	1,169,490	(52,028)		3,554		55,583
				Foreign stocks and other securities	-	-	-		-		-
			Other securities	113,812	111,843	(1,968)		13		1,981
			Monetary claims bought	22,041	21,550	(491)		-		491
			Certificates of deposit	-	-	-		-		-
			Others	-	-	-		-		-
	Total	6,142,136	5,863,658	(278,477)		33,334		311,811
		Domestic bonds	1,839,755	1,821,640	(18,115)		21,150		39,266
		Domestic stocks	-	-	-		-		-
		Foreign securities	4,166,526	3,908,624	(257,902)		12,170		270,072
			Foreign bonds	4,166,526	3,908,624	(257,902)		12,170		270,072
			Foreign stocks and other securities	-	-	-		-		-
		Other securities	113,812	111,843	(1,968)		13		1,981
		Monetary claims bought	22,041	21,550	(491)		-		491
		Certificates of deposit	-	-	-		-		-
		Others	-	-	-		-		-

Note: 1. The table above includes assets which are considered appropriate to handle as securities as defined in the Financial Instruments and Exchange Law.

2. Money held in trust other than trading securities is included, and its book value and gains (losses) as of March 31, 2024 were 49,842 million yen and 249 million yen respectively.

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The Dai-ichi Frontier Life Insurance Co., Ltd.

*The book value of stocks and other securities without market value and of investment partnerships etc. are as follows:

Not applicable.

D. Fair value Information on Money Held in Trust

					(millions of yen)
	Carrying value on	Fair value		Gains (losses)
	the balance sheet
		Gains	Losses
As of March 31, 2024	879,848	879,848	18,349	22,362	4,013
As of March 31, 2023	904,519	904,519	(2,256)	1,857	4,113

Notes: 1. Fair value equivalents appearing in this table are based on prices calculated using a reasonable method by

trustees of money held in trust.

2. Gains (losses) are valuation gains (losses) that were included in the statement of earnings.

*Information on money held in trust for investment purposes is as follows:

				(millions of yen)
	As of March 31, 2023	As of March 31, 2024
	Carrying value on	Valuation gains	Carrying value on	Valuation gains
	(losses) included in	(losses) included in
	the balance sheet	the statements of	the balance sheet	the statements of
		earnings		earnings
Money held in trust for investment purposes	904,519	(2,256)	829,755	15,497

*Information on money held in trust classified as held-to-maturity,policy-reserve-matching, or other money held in trust are as follows:

(millions of yen)

		Book value	Fair value		Gains (losses)
				Gains		Losses
As of March 31, 2024
	Money held in trust for held-to-maturity purposes	-	-	-		-		-
	Money held in trust for policy reserve matching	-	-	-		-		-
	Other money held in trust	49,842	50,092	249		249		-
As of March 31, 2023
	Money held in trust for held-to-maturity purposes	-	-	-		-		-
	Money held in trust for policy reserve matching	-	-	-		-		-
	Other money held in trust	-	-	-		-		-

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The Dai-ichi Frontier Life Insurance Co., Ltd.