May 15, 2025

The Neo First Life Insurance Company, Limited

Financial Results for the Fiscal Year Ended March 31, 2025

The Neo First Life Insurance Company, Limited (the “Company”; President: Takashi Uehara) announces its financial results for the fiscal year ended March 31, 2025.

[Contents]

Financial Results for the Fiscal Year Ended March 31, 2025

  1. Business Highlights P.1

  2. Policies in Force as of March 31, 2025 by Benefit ........................................................ P.3

  3. Policyholder Dividends based on Financial Results

    for the Fiscal Year Ended March 31, 2025 .................................................................... P.3

  4. Investment of General Account Assets for the Fiscal Year Ended March 31, 2025...... P.4

  5. Unaudited Non-Consolidated Balance Sheet............................................................... P.10

  6. Unaudited Non-Consolidated Statement of Earnings .................................................. P.15

  7. Breakdown of Ordinary Profit (Fundamental Profit)................................................... P.18

  8. Unaudited Non-Consolidated Statement of Changes in Net Assets ............................ P.19

  9. Status of Claims Based on Insurance Business Act ..................................................... P.20

  10. Solvency Margin Ratio................................................................................................ P.21

  11. Status of Separate Account for the Fiscal Year Ended March 31, 2025 ..................... P.21

  12. Consolidated Financial Summary ............................................................................... P.21

* 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, 2024

    As of March 31, 2025

    % of March 31, 2023 total

    % of March 31, 2024 total

    Individual insurance

    100,080

    80.2

    99,973

    99.9

    Individual annuities

    45

    155.4

    64

    140.3

    Total

    100,126

    80.2

    100,037

    99.9

    Medical and survival benefits

    49,078

    115.0

    55,370

    112.8

    New Policies (millions of yen except percentages)

    Year ended March 31, 2024

    Year ended March 31, 2025

    % of March 31, 2023 total

    % of March 31, 2024 total

    Individual insurance

    13,162

    109.4

    13,111

    99.6

    Individual annuities

    —

    —

    —

    —

    Total

    13,162

    109.4

    13,111

    99.6

    Medical and survival benefits

    10,074

    111.1

    10,186

    101.1

    Notes: 1. Annualized net premiums are calculated by using multipliers for various premium payment terms to the premium per payment.

  2. Annualized net premium for medical and survival benefits includes (a) premiums related to medical benefits such as hospitalization and surgery benefits, (b) premiums related to survival benefits such as specific illness, and (c) premiums related to premium waiver benefits.

  1. Sum Insured of Policies in Force and New Policies

    Policies in Force

    As of March 31, 2024

    As of March 31, 2025

    Number of policies (thousands)

    Amount (billions of yen)

    Number of policies (thousands)

    Amount (billions of yen)

    % of March 31, 2023 total

    % of March 31, 2023 total

    % of March 31, 2024 total

    % of March 31, 2024 total

    Individual insurance

    891

    119.8

    1,900.5

    106.6

    1,056

    118.5

    1,988.9

    104.7

    Individual annuities

    0

    150.0

    0.7

    158.3

    0

    133.3

    0.9

    130.5

    Group insurance

    —

    —

    —

    —

    —

    —

    —

    —

    Group annuities

    —

    —

    —

    —

    —

    —

    —

    —

    Note: The amount of individual annuities shows policy reserves for policies after the commencement of annuities.

    New Policies

    Year ended March 31, 2024

    Year ended March 31, 2025

    Number of policies (thousands)

    Amount (billions of yen)

    Number of policies (thousands)

    Amount (billions of yen)

    % of March 31,

    2023 total

    % of March 31,

    2023 total

    New Business

    Net increase by conversions

    % of March 31,

    2024 total

    % of March 31,

    2024 total

    New Business

    Net increase by conversions

    Individual insurance

    205

    126.2

    333.6

    158.3

    333.6

    —

    220

    107.5

    326.3

    97.8

    326.3

    —

    Individual annuities

    —

    —

    —

    —

    —

    —

    —

    —

    —

    —

    —

    —

    Group insurance

    —

    —

    —

    —

    —

    —

    —

    —

    —

    —

    —

    —

    Group annuities

    —

    —

    —

    —

    —

    —

    —

    —

    —

    —

    —

    —

  2. Profit and Loss Items (millions of yen except percentages)

    Year ended March 31, 2024

    Year ended March 31, 2025

    % of March 31, 2023 total

    % of March 31, 2024 total

    Premium and other income

    208,134

    89.6

    144,167

    69.3

    Investment income

    723

    133.8

    1,035

    143.2

    Benefits and claims

    242,847

    120.4

    100,052

    41.2

    Investment expenses

    1

    15.3

    667

    34,127.1

    Ordinary profit (loss)

    (1,269)

    —

    (8,317)

    655.4

  3. Total Assets (millions of yen except percentages)

    As of March 31, 2024

    As of March 31, 2025

    % of March 31, 2023 total

    % of March 31, 2024 total

    Total assets

    342,602

    83.5

    349,564

    102.0

    1. Policies in Force as of March 31, 2025 by Benefit

      (thousands, millions of yen)

      Individual insurance

      Individual annuities

      Group insurance

      Total

      Number of policies

      Amount

      Number of policies

      Amount

      Number of policies

      Amount

      Number of policies

      Amount

      Death benefits

      General

      674

      1,988,998

      —

      —

      —

      —

      674

      1,988,998

      Accidental

      15

      1,411,545

      —

      —

      —

      —

      15

      1,411,545

      Others

      —

      —

      —

      —

      —

      —

      —

      —

      Survival benefits

      0

      43

      0

      997

      —

      —

      0

      1,040

      Hospitalization benefits

      Accidental

      943

      5,052

      —

      —

      —

      —

      943

      5,052

      Illness

      943

      5,052

      —

      —

      —

      —

      943

      5,052

      Others

      456

      7,576

      —

      —

      —

      —

      456

      7,576

      Injury benefits

      —

      —

      —

      —

      —

      —

      —

      —

      Surgery benefits

      986

      —

      —

      —

      —

      —

      986

      —

      Disability benefits

      3

      560

      —

      —

      —

      —

      3

      560

      Others

      1,005

      589,165

      —

      —

      —

      —

      1,005

      589,165

      Notes: 1. For individual annuities, amounts in “Survival benefits” show policy reserves after the commencement of payment of annuities.

      1. Amounts in “Hospitalization benefits” show the amount of hospitalization benefit to be paid per day.

      2. Amounts in “Disability benefits” show the amount of disability benefits paid per month.

      3. Amounts in “Others” show the amount of the diagnosis benefits of the cancer medical treatment rider, etc.

    2. Policyholder Dividends based on Financial Results for the Fiscal Year Ended March 31, 2025

      As the Company deals only with nonparticipating individual insurance, there is no applicable item.

    3. Investment of General Account Assets for the Fiscal Year Ended March 31, 2025
      1. Investment of Assets for the Fiscal Year Ended March 31, 2025

        1. Operational environment

          In fiscal 2024, although the Japanese economy saw increased personal consumption due to wage increases by large companies in particular, real wages struggled to grow as a result of inflationary pressures, leading to only moderate recovery. At the same time, although global economies slowed down due to their financial environments remaining tight, they were also strong thanks to a push from the U.S. economy, which had solid employment and income conditions. Meanwhile, as inflation rates calmed down in various countries due to economic slowdown, these countries also saw shifts in monetary policy, including reductions in policy rates. Amid these economic conditions, the operational environment was as follows.

          The yield on 10-year JGBs rose to the 1.4% range due to the Bank of Japan (BOJ) gradually raising the policy rate.

          Yield on ten-year government bonds:

          April 1, 2024

          0.725%

          March 31, 2025

          1.485%

          Nikkei 225 Stock Average:

          TOPIX:

          April 1, 2024

          March 31, 2025

          April 1, 2024

          March 31, 2025

          40,369

          35,617

          2,768

          2,658

          The Nikkei 225 Stock Average reached record-high levels due to expectations of strong corporate earnings and increases in the demand for generative AI, but stock prices also fell towards the end of the fiscal year due to concerns surrounding slowdown of the U.S. economy as well as uncertainty regarding the new administration’s tariff policy.

          Regarding the JPY/USD rate, the yen became stronger against the dollar despite volatility. This was due to the narrowing interest rate differentials both in Japan and the U.S., following the policy rate cut by the Federal Reserve Board (FRB) and the gradual policy rate hikes by the BOJ.

          Regarding the JPY/EUR rate, the yen became stronger against the euro due to the narrowing interest rate differentials both in Japan and Europe. This was driven by the reduction of the policy rate by the European Central Bank (ECB) in response to lower inflation rates resulting from resource and energy prices settling down as well as monetary tightening due a high interest rate policy.

          JPY /USD:

          April 1, 2024

          ¥151.41

          JPY/EUR:

          March 31 2025

          April 1, 2024

          March 31 2025

          ¥149.52

          ¥163.24

          ¥162.08

        2. Investment Policies of the Company

          Under the framework of integrated asset and liability management (ALM), the Company aims to ensure

          stable income through investment in fixed assets, mainly public and corporate bonds, taking into account the liability characteristics of life insurance and considering the public nature and safety.

        3. Investment Results

          The balance of general account assets at the end of the fiscal year ended March 31, 2025 was ¥349,564 million. The balance of assets under management included deposits of ¥90,388 million, and bonds of ¥187,778 million. In addition, investment income was ¥1,035 million, and investment expenses were ¥667 million.

      2. Asset Composition (millions of yen except percentages)

        As of March 31, 2024

        As of March 31, 2025

        Carrying amount

        %

        Carrying amount

        %

        Cash, deposits, and call loans

        172,756

        50.4

        90,388

        25.9

        Securities repurchased under resale agreements

        —

        —

        —

        —

        Deposit paid for securities borrowing transactions

        —

        —

        —

        —

        Monetary claims bought

        —

        —

        —

        —

        Trading account securities

        —

        —

        —

        —

        Money held in trust

        —

        —

        —

        —

        Securities

        111,078

        32.4

        187,778

        53.7

        Domestic bonds

        104,525

        30.5

        183,480

        52.5

        Domestic stocks

        1,453

        0.4

        —

        —

        Foreign securities

        5,099

        1.5

        4,297

        1.2

        Foreign bonds

        5,099

        1.5

        4,297

        1.2

        Foreign stocks and other securities

        —

        —

        —

        —

        Other securities

        —

        —

        —

        —

        Loans

        1,657

        0.5

        1,805

        0.5

        Real estate

        205

        0.1

        191

        0.1

        Deferred tax assets

        1,443

        0.4

        2,209

        0.6

        Others

        55,464

        16.2

        67,195

        19.2

        Reserve for possible loan losses

        (2)

        (0.0)

        (4)

        (0.0)

        Total

        342,602

        100.0

        349,564

        100.0

        Foreign currency-denominated assets

        —

        —

        —

        —

      3. Changes (Increase/Decrease) in Assets (millions of yen)

        Year ended March 31, 2024

        Year ended March 31, 2025

        Cash, deposits, and call loans

        (89,924)

        (82,367)

        Securities repurchased under resale agreements

        —

        —

        Deposit paid for securities borrowing transactions

        —

        —

        Monetary claims bought

        —

        —

        Trading account securities

        —

        —

        Money held in trust

        —

        —

        Securities

        10,488

        76,700

        Domestic bonds

        13,390

        78,955

        Domestic stocks

        0

        (1,453)

        Foreign securities

        (2,902)

        (801)

        Foreign bonds

        (2,902)

        (801)

        Foreign stocks and other securities

        —

        —

        Other securities

        —

        —

        Loans

        (298)

        147

        Real estate

        48

        (13)

        Deferred tax assets

        126

        765

        Others

        11,858

        11,731

        Reserve for possible loan losses

        (0)

        (1)

        Total

        (67,702)

        6,961

        Foreign currency-denominated assets

        —

        —

      4. Investment Income (millions of yen)

        Year ended March 31, 2024

        Year ended March 31, 2025

        Interest and dividends

        723

        1,035

        Interest from bank deposits

        —

        —

        Interest and dividends from securities

        672

        994

        Interest from loans

        51

        39

        Rental income

        —

        —

        Other interest and dividends

        —

        1

        Gains on trading account securities

        —

        —

        Gains on money held in trust

        —

        —

        Gains on investment in trading securities

        —

        —

        Gains on sale of securities

        —

        —

        Gains on sale of domestic bonds

        —

        —

        Gains on sale of domestic stocks

        —

        —

        Gains on sale of foreign securities

        —

        —

        Others

        —

        —

        Gains on redemption of securities

        —

        —

        Derivative transaction gains

        —

        —

        Foreign exchange gains

        —

        —

        Reversal of reserve for possible loan losses

        —

        —

        Other investment income

        —

        —

        Total

        723

        1,035

      5. Investment Expense (millions of yen)

        Year ended March 31, 2024

        Year ended March 31, 2025

        Interest expenses

        1

        0

        Losses on trading account securities

        —

        —

        Losses on money held in trust

        —

        —

        Losses on investment in trading securities

        —

        —

        Losses on sale of securities

        —

        665

        Losses on sale of domestic bonds

        —

        —

        Losses on sale of domestic stocks

        —

        665

        Losses on sale of foreign securities

        —

        —

        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

        —

        —

        Derivative transaction losses

        —

        —

        Foreign exchange losses

        —

        —

        Provision for reserve for possible loan losses

        0

        1

        Write-down of loans

        —

        —

        Depreciation of real estate for rent and others

        —

        —

        Other investment expenses

        —

        0

        Total

        1

        667

      6. Other Information on Investments

        1. Rates of Return (%)

          Year ended March 31, 2024

          Year ended March 31, 2025

          Cash, deposits, and call loans

          —

          0.00

          Securities repurchased under resale agreements

          —

          —

          Deposit paid for securities borrowing transactions

          —

          —

          Monetary claims bought

          —

          —

          Trading account securities

          —

          —

          Money held in trust

          —

          —

          Securities

          0.61

          0.20

          Domestic bonds

          0.58

          0.60

          Domestic stocks

          1.97

          (47.82)

          Foreign securities

          0.72

          0.86

          Loans

          2.81

          2.26

          Real estate

          —

          —

          Total of general account

          0.20

          0.11

          Foreign investments

          0.72

          0.86

          Note: The rates of return above are calculated by dividing the net investment income included in ordinary profit by the average daily balance on a book value basis.

          Note: Foreign investments are yen-denominated assets.

        2. Valuation Gains and Losses on Trading Securities Not applicable.

        3. Fair Value Information on Securities (other than trading securities)

          (millions of yen)

          As of March 31, 2024

          As of March 31, 2025

          Book value

          Fair value

          Gains (losses)

          Book value

          Fair value

          Gains (losses)

          Gains

          Losses

          Gains

          Losses

          Held-to-maturity bonds

          109,528

          104,718

          (4,809)

          25

          4,835

          177,821

          167,969

          (9,852)

          —

          9,852

          Policy-reserve-matching bonds

          —

          —

          —

          —

          —

          —

          —

          —

          —

          —

          Stocks of subsidiaries and affiliated companies

          —

          —

          —

          —

          —

          —

          —

          —

          —

          —

          Available-for-sale securities

          1,694

          1,550

          (144)

          159

          304

          10,041

          9,956

          (84)

          —

          84

          Domestic bonds

          —

          —

          —

          —

          —

          9,941

          9,860

          (81)

          —

          81

          Domestic stocks

          1,594

          1,453

          (141)

          159

          300

          —

          —

          —

          —

          —

          Foreign securities

          100

          96

          (3)

          —

          3

          100

          96

          (3)

          —

          3

          Foreign bonds

          100

          96

          (3)

          —

          3

          100

          96

          (3)

          —

          3

          Foreign stocks and other securities

          —

          —

          —

          —

          —

          —

          —

          —

          —

          —

          Other securities

          —

          —

          —

          —

          —

          —

          —

          —

          —

          —

          Monetary claims bought

          —

          —

          —

          —

          —

          —

          —

          —

          —

          —

          Certificates of deposit

          —

          —

          —

          —

          —

          —

          —

          —

          —

          —

          Others

          —

          —

          —

          —

          —

          —

          —

          —

          —

          —

          Total

          111,222

          106,268

          (4,954)

          185

          5,139

          187,863

          177,925

          (9,937)

          —

          9,937

          Domestic bonds

          104,525

          99,751

          (4,773)

          25

          4,799

          183,562

          173,691

          (9,871)

          —

          9,871

          Domestic stocks

          1,594

          1,453

          (141)

          159

          300

          —

          —

          —

          —

          —

          Foreign securities

          5,102

          5,063

          (39)

          —

          39

          4,300

          4,234

          (66)

          —

          66

          Foreign bonds

          5,102

          5,063

          (39)

          —

          39

          4,300

          4,234

          (66)

          —

          66

          Foreign stocks and other securities

          —

          —

          —

          —

          —

          —

          —

          —

          —

          —

          Other securities

          —

          —

          —

          —

          —

          —

          —

          —

          —

          —

          Monetary claims bought

          —

          —

          —

          —

          —

          —

          —

          —

          —

          —

          Certificates of deposit

          —

          —

          —

          —

          —

          —

          —

          —

          —

          —

          Others

          —

          —

          —

          —

          —

          —

          —

          —

          —

          —

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

          Book value of stocks without market value and associations, etc.: Not applicable.

        4. Fair Value Information on Money Held in Trust Not applicable.

    4. Unaudited Non-Consolidated Balance Sheet

      (millions of yen)

      As of March 31, 2024

      As of March 31, 2025

      As of March 31, 2024

      As of March 31, 2025

      Amount

      Amount

      Amount

      Amount

      (ASSETS)

      (LIABILITIES)

      Cash and deposits

      172,756

      90,388

      Policy reserves and others

      296,728

      310,304

      Deposits

      172,756

      90,388

      Reserves for outstanding claims

      28,403

      27,397

      Securities

      111,078

      187,778

      Policy reserves

      268,325

      282,906

      Government bonds

      6,102

      45,835

      Reinsurance payables

      3,934

      3,709

      Corporate bonds

      98,422

      137,645

      Other liabilities

      6,163

      6,048

      Domestic stocks

      1,453

      —

      Corporate income tax payable

      16

      25

      Foreign securities

      5,099

      4,297

      Accounts payable

      1,889

      1,386

      Loans

      1,657

      1,805

      Accrued expenses

      4,218

      4,605

      Policy loans

      1,657

      1,805

      Deposits received

      1

      0

      Tangible fixed assets

      346

      305

      Suspense receipt

      37

      30

      Buildings

      205

      191

      Reserve for price fluctuations

      15

      17

      Other

      140

      113

      Total liabilities

      306,841

      320,079

      Intangible fixed assets

      10,891

      11,173

      Software

      10,885

      11,169

      (NET ASSETS)

      Other

      5

      4

      Capital stock

      47,599

      47,599

      Reinsurance receivables

      33,274

      42,750

      Capital surplus

      39,599

      39,599

      Other assets

      11,157

      13,157

      Legal capital surplus

      39,599

      39,599

      Accounts receivable

      8,294

      9,907

      Retained earnings

      (51,330)

      (57,650)

      Prepaid expenses

      2,095

      2,424

      Other retained earnings

      (51,330)

      (57,650)

      Accrued revenue

      185

      234

      Retained earnings brought forward

      (51,330)

      (57,650)

      Deposits

      328

      327

      Total shareholders’ equity

      35,867

      29,547

      Suspense payments

      0

      0

      Net unrealized gains (losses) on securities, net of tax

      (107)

      (63)

      Other assets

      253

      261

      Total of valuation and translation adjustments

      (107)

      (63)

      Deferred tax assets

      1,443

      2,209

      Total net assets

      35,760

      29,484

      Reserve for possible loan losses

      (2)

      (4)

      Total assets

      342,602

      349,564

      Total liabilities and net assets

      342,602

      349,564

      (Notes to Balance Sheet as of March 31, 2025)

      1. In terms of evaluation of securities, held-to-maturity bonds are evaluated by the amortized cost method (straight-line method) based on the moving average method. Available-for-sale securities are evaluated by the market value method (costs are calculated by the moving average method) based on the market price, etc. on the last day of March.

        Net unrealized gains or losses on these available-for-sale securities are presented as a separate component of net assets and not in the non-consolidated statement of earnings.

      2. Depreciation of Depreciable Assets

        1. Depreciation of Tangible Fixed Assets Excluding Leased Assets

          Depreciation of tangible fixed assets excluding leased assets and buildings is calculated by the declining balance method. (Depreciation of buildings is calculated by the straight-line method.)

        2. Depreciation of Leased Assets

          Depreciation of leased assets with regard to finance leases whose ownership does not transfer to the lessees is computed under the straight-line method assuming zero remaining value.

        3. Amortization of Intangible Fixed Assets Excluding Leased Assets

          Amortization of intangible fixed assets excluding leased assets is calculated by the straight-line method. Amortization of software is calculated by the straight-line method based on the estimated useful life of the software.

      3. Reserve for Possible Loan Losses

        To prepare for possible loan losses, the reserve for possible loan losses is calculated based on the asset quality assessment regulations, the internal rules for self-assessment, the write-offs and reserves recording regulations, and the internal rules for write-offs and reserves that have been established by the Company. For loans to and claims on obligors for which the Company has serious concerns over their recoverability or whose value is assessed by the Company to have been damaged materially as a result of the assessment of individual loans or claims, the amount that is deemed necessary is provided.

      4. Reserve for Price Fluctuations

        A reserve for price fluctuations is calculated in accordance with the provisions of Article 115 of the Insurance Business Act.

      5. Calculation of National and Local Consumption Tax

        The Company accounts for national and local consumption tax by the tax-exclusion method. However, the tax-inclusion method is employed for operating expenses and other expenses. Of the non-deductible consumption tax, etc. related to assets, deferred consumption tax, etc. provided for in tax law is posted in prepaid expenses and is amortized evenly in five years. The non-deductible consumption tax, etc. other than deferred consumption tax, etc. is recorded as an expense in the fiscal year under review.

      6. Policy Reserves

        Policy reserves of the Company are calculated and set aside in accordance with the method specified in the statement of calculation procedures (Article 4, Paragraph 2, Item 4 of the Insurance Business Act) pursuant to the provisions of Article 116 of the Insurance Business Act for contracts in which the liability under insurance contracts have begun as of the end of the fiscal year in preparation for performance of future obligations under insurance contracts.

        Of the policy reserves, insurance premium reserves are calculated as follows:

        1. Reserves for policies subject to the standard policy reserve rules are calculated based on the methods stipulated by the Commissioner of the Financial Services Agency (Notification of the Minister of Finance No. 48, 1996).

        2. Reserves for other policies are established based on the net level premium method.

          If it is deemed, mainly based on an estimation of future income using most recent actual figures, that the policy reserves set aside are likely to be insufficient to cover the performance of future obligations, additional policy reserves need to be accumulated in accordance with Article 69, Paragraph 5 of the Ordinance for Enforcement of the Insurance Business Act. Policy reserves as of the end of the accounting period under review include additional policy reserves for a portion of insurance policies in accordance with the said Paragraph 5.

          Of the policy reserves, contingency reserves are set aside for covering risks that may accrue in the future, so as to secure the performance of future obligations under the insurance contracts in accordance with Article 69, Paragraph 1, Item 3 of the Regulation for Enforcement of the Insurance Business Act.

      7. As for already occurred but not yet reported reserves for outstanding claims (meaning insurance proceeds, etc. for which the grounds for payment stipulated in insurance policies are deemed to have already occurred although they are not yet reported. The same applies hereafter), given that it is not possible to calculate the appropriate level of the amount by the calculation based on the main clause of Article 1, Paragraph 1 of the Public Notice No. 234 of the Ministry of Finance of 1998 (hereinafter referred to as the “IBNR Notice”) because the special handling—namely paying hospitalization benefits, etc. if a patient is diagnosed with COVID-19 and is treated under the supervision of a physician or other health care provider at an accommodation facility or at home (hereinafter referred to as “Deemed Hospitalization”), among other cases—is not applied from May 8, 2023, the amount calculated based on the following method is recorded in accordance with the proviso of Article 1, Paragraph 1 of the IBNR Notice.

        (Overview of the calculation method)

        Calculation is made in the same manner as the main clause of Article 1, Paragraph 1 of the IBNR Notice after excluding the amount for the Deemed Hospitalization of patients from the amount required for accumulating already occurred but not yet reported reserves for outstanding claims and claims paid for all fiscal years listed in the main clause of Article 1, Paragraph 1 of the IBNR Notice.

      8. Accounting Standard and Guidance Not Yet Adopted

        • “Accounting Standard for Leases” (ASBJ Statement No. 34, September 13, 2024).

        • “Implementation Guidance on Accounting Standard for Leases” (ASBJ Guidance No. 33, September 13, 2024)

        In addition to the above, relevant ASBJ Statements, ASBJ Guidance, ASBJ PITF, and Transferred Guideline revised

        1. Outline

          They specify the accounting treatment such as recording assets and liabilities of all leases of lessees in the same way as international standards

        2. Scheduled date for adoption

          Scheduled to be applied from the beginning of the fiscal year beginning on April 1, 2027.

        3. Impact of applying the standard and guidance

        The impact of applying the standard and guidance is currently under assessment.

      9. Matters Related to Financial Instruments, Etc.

        1. Status of financial instruments

          The basic policy of the Company is to aim for effective asset management conforming to the diversification of the investment environment and asset management by conducting appropriate income and risk management and working to strengthen risk management from the perspective of maintaining the soundness of business in asset management. Based on this policy, the Company manages assets by paying attention to their safety and cashability (liquidity). As major financial products, securities are exposed to market risk and credit risk. The Company manages the market risk by measuring its amount based on value-at-risk (VaR), which is a typical method of measurement. The Company also manages the credit risk by regularly surveying the credit standing of individual investments.

        2. Fair values, etc. of financial instruments

          The values on the Balance Sheet and the fair values of financial instruments and differences between them are as follows. (millions of yen)

          Value on Balance Sheet

          Fair value

          Difference

          (i) Securities

          a. Held-to-maturity bonds

          177,821

          167,969

          (9,852)

          b. Available-for-sale securities

          9,956

          9,956

          —

          (ii) Loans

          1,805

          1,805

          —

          Total assets

          189,583

          179,731

          (9,852)

          Note: The information on deposits is omitted because they have no maturity dates and their fair value is close to their book value.

        3. Breakdown of financial instruments by level of fair value

          The fair values of financial instruments are classified into the following three levels according to the observability and importance of inputs used in the calculation of fair values.

          Level 1 fair value: fair value calculated using market prices, on an active market, of assets or liabilities whose fair value is calculated of the observable inputs related to the calculation of fair value

          Level 2 fair value: fair value calculated using inputs other than the inputs used for Level 1 of the observable inputs related to fair value

          Level 3 fair value: fair value calculated using significant inputs that are not observable related to the calculation of fair value

          If more than one input that has a significant effect on the calculation of fair value is used, the fair value is classified to the level of inputs whose priority is lowest in the calculation of fair value.

          1. Financial instruments whose fair values are posted in the Balance Sheet

            Fair Value (millions of yen)

            Level 1

            Level 2

            Level 3

            Total

            Securities

            Available-for-sale securities

            Government bonds

            9,860

            —

            —

            9,860

            Foreign bonds

            —

            96

            —

            96

            Total assets

            9,860

            96

            —

            9,956

          2. Financial instruments other than those whose fair values are posted in the Balance Sheet

            Fair Value (millions of yen)

            Level 1

            Level 2

            Level 3

            Total

            Securities

            Held-to-maturity bonds

            Government bonds

            34,507

            —

            —

            34,507

            Corporate bonds

            —

            129,323

            —

            129,323

            Foreign bonds

            —

            4,138

            —

            4,138

            Loans

            —

            —

            1,805

            1,805

            Total assets

            34,507

            133,461

            1,805

            169,774

            Note: Explanations about assessment techniques used in the calculation of fair value and inputs related to the calculation of fair value

            1. Securities

              The securities for which market prices on an active market can be used without adjustment are classified as Level 1. The Level 1 securities are primarily government bonds. If published market prices of securities on a market that is not active are used, the securities are classified to Level 2.

            2. Loans

        Loans do not have a repayment deadline due to their characteristics, e.g. the loan limit is within the value of collateral, and their fair value is assumed to be close to their book value based on the expected time of repayment, interest rate conditions, etc., and the book value is used as their fair value. Loans are classified as Level 3 fair value.

      10. The claims do not include any claims provable in bankruptcy, claims provable in rehabilitation and claims equivalent to these, doubtful claims, delinquent claims of three months or more, and restructured claims.

      11. The accumulated depreciation of tangible fixed assets as of March 31, 2025 was ¥351 million.

      12. The total amount of payables to subsidiaries and affiliated companies was ¥10 million.

      13. The total amount of deferred tax assets was ¥14,181 million, and the total amount of deferred tax liabilities was ¥0 million. The amount of deferred tax assets subtracted as valuation allowances is

        ¥11,971 million.

        The major components of deferred tax assets were insurance policy reserves of ¥1,912 million, deferred assets of ¥200 million, transfer gain (loss) adjustment of ¥174 million, the amount of excess depreciation of ¥116 million and tax losses carried forward of ¥11,589 million.

        Of the amount deducted from deferred tax assets as the amount of valuation allowances, the amount of valuation allowance pertaining to tax losses carried forward is ¥11,589 million, and the amount of valuation allowance pertaining to future deductible temporary differences is ¥381 million.

        The major component of deferred tax liabilities was denial of book value gain adjustment due to tax inclusive handling of ¥0 million yen.

        The main reason for changes in the amount deducted from deferred tax assets as the amount of valuation allowances was an increase in tax losses carried forward compared to the end of the previous fiscal year.

        Amounts of tax losses carried forward and deferred tax assets by the losses carry-forward period are as follows.

        (millions of yen)

        Within a year

        More than a year and within five years

        More than five years

        Total

        Tax losses carried forward (*1)

        —

        4,735

        6,854

        11,589

        Amount of valuation allowances

        —

        (4,735)

        (6,854)

        (11,589)

        Deferred tax assets

        —

        —

        —

        —

        (*1) The tax losses carried forward is an amount obtained by multiplying the effective statutory tax rate.

        The actual effective tax rate for the fiscal year ended March 31, 2025 was 24.16%, and the major component of the difference from the statutory tax rate of 28.00% was -3.93% for valuation allowances.

        The Company is applying the Group Tax Sharing System, with Dai-ichi Life Holdings, Inc. being the parent company under the system. The Company is carrying out accounting and disclosure related to national and local corporate income tax and tax effect accounting in line with the Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System (Accounting Standards Board of Japan (ASBJ) Practical Solution No. 42 issued August 12, 2021).

        With the enactment in the Diet of the Act Partially Amending the Income Tax Act on March 31, 2025, statutory effective tax rate to be used in the calculation of deferred tax assets and deferred tax liabilities has been changed from 28.00% to 28.93% which will be applied to business years starting on and after April 1, 2026.

        Due to this change, deferred tax assets increased ¥48 million and corporate income taxes - deferred decreased ¥48 million.

      14. The amount of policy reserves provided for reinsured parts defined in Article 71, Paragraph 1 of the Regulation for Enforcement of the Insurance Business Act (hereinafter “policy reserves reinsured”) was

        ¥43,688 million.

      15. The amount of net assets per share of the Company was ¥7,104.93.

      16. The balance of unamortized outwards reinsurance commissions at the end of the fiscal year under review pertaining to reinsurance contracts stipulated in Article 1, Paragraph 5 of the Public Notice No. 50 of the Ministry of Finance of 1996 was ¥45,442 million.

      17. Amounts are rounded off to the unit stated.

    5. Unaudited Non-Consolidated Statement of Earnings

      (millions of yen)

      Year ended March 31, 2024

      Year ended March 31, 2025

      Amount

      Amount

      ORDINARY REVENUES

      302,741

      147,302

      Premium and other income

      208,134

      144,167

      Premium income

      102,001

      101,758

      Reinsurance income

      106,132

      42,408

      Investment income

      723

      1,035

      Interest and dividends

      723

      1,035

      Interest and dividends from securities

      672

      994

      Interest from loans

      51

      39

      Other interest and dividends

      —

      1

      Other ordinary revenues

      93,883

      2,099

      Reversal of reserves for outstanding claims

      —

      1,005

      Reversal of policy reserves

      92,981

      —

      Other

      901

      1,093

      ORDINARY EXPENSES

      304,010

      155,619

      Benefits and claims

      242,847

      100,052

      Claims

      1,634

      2,074

      Annuities

      440

      609

      Benefits

      12,172

      14,146

      Surrender values

      117,338

      41,091

      Other refunds

      5,411

      2,066

      Ceding reinsurance commissions

      105,849

      40,064

      Provision for policy reserves and others

      23,331

      14,581

      Provision for reserves for outstanding claims

      23,331

      —

      Provision for policy reserves

      —

      14,581

      Investment expenses

      1

      667

      Interest expenses

      1

      0

      Losses on sale of securities

      —

      665

      Provision for reserve for possible loan losses

      0

      1

      Other investment expenses

      —

      0

      Operating expenses

      34,386

      36,259

      Other ordinary expenses

      3,443

      4,058

      National and local taxes

      469

      548

      Depreciation

      2,798

      3,509

      Other ordinary expenses

      176

      0

      ORDINARY LOSS

      1,269

      8,317

      EXTRAORDINARY LOSSES

      9

      15

      Losses on disposal of fixed assets

      6

      13

      Provision for reserve for price fluctuations

      2

      2

      Loss before income taxes

      1,278

      8,332

      Corporate income taxes - current

      (43)

      (1,232)

      Corporate income taxes - deferred

      (129)

      (780)

      Total of corporate income taxes

      (172)

      (2,013)

      Net loss for the year

      1,105

      6,319

      (Notes to Statement of Earnings)

      1. The standards for recording of premium and other income and benefits and claims are as follows.

        1. Premium income

          For premium income, the amount of insurance premiums received for which the liability under insurance contracts has begun is recorded.

          Of the insurance premiums received, the portion corresponding to the unexpired period as of the end of the fiscal year is transferred to policy reserves in accordance with Article 69, Paragraph 1, Item 2 of the Regulation for Enforcement of the Insurance Business Act.

        2. Reinsurance income

          For reinsurance income, the reinsured amount of the amount paid as insurance proceeds, etc. pertaining to the primary insurance contracts based on the reinsurance agreement is recorded in reinsurance income at the time of the payment of the insurance proceeds, etc.

          Of modified coinsurance, in some transactions that do not give or receive cash, the amount received as part of the amount equivalent to new contract expenses pertaining to the primary insurance contracts based on the reinsurance agreement is recorded in reinsurance income, and the same amount is recorded in the total amount of claims against reinsurance companies as unamortized outwards reinsurance commissions and amortized over the reinsurance contract period.

        3. Benefits and claims (excluding ceding reinsurance commissions)

          Benefits and claims (excluding ceding reinsurance commissions) are recorded for contracts in which the amount calculated based on the policy conditions was paid due to the occurrence of the grounds for payment under the policy conditions, using the said amount.

          Based on Article 117 of the Insurance Business Act, reserves for outstanding claims are transferred for insurance proceeds, etc. for which payment is not made although the claims, etc. are due and payable as of the end of the fiscal year, or the grounds for payment are deemed to have already occurred although they are not reported.

        4. Ceding reinsurance commissions

          Reinsurance premiums agreed based on the reinsurance agreement are recorded in ceding reinsurance commissions at the time of receiving insurance premiums pertaining to the primary insurance contracts.

          The Company has elected not to set aside certain policy reserves corresponding to the portion of the reinsurance under Article 71, Paragraph 1 of the Regulation for Enforcement of the Insurance Business Act.

      2. Total amount of revenues arising from transactions with subsidiaries and affiliated companies was ¥9 million and total amount of expenses was ¥57 million and the transfer amount of securities was ¥927 million.

      3. Losses on sale of securities consist of a losses on the sale of stocks of ¥665 million.

      4. In the calculation of the provision for policy reserves, the amount of provision for policy reserves reinsured that are deducted is ¥4,625 million.

      5. Net loss per share for the fiscal year ended March 31, 2025 was ¥1,522.87.

      6. Reinsurance income includes ¥23,136 million, the amount of increase in unamortized outwards reinsurance commissions for reinsurance contracts stipulated in Article 1, Paragraph 5 of the Public Notice No. 50 of the Ministry of Finance of 1996.

      7. Ceding reinsurance commissions include ¥13,432 million, the amount of decrease in unamortized outwards reinsurance commissions for reinsurance contracts stipulated in Article 1, Paragraph 5 of the Public Notice No. 50 of the Ministry of Finance of 1996.

      8. Transactions with related parties are as follows.

        (millions of yen)

        Type

        Name of company, etc.

        Percentage of voting rights (held)

        Relationship with related parties

        Details of transaction

        Amount of transaction

        Account title

        Closing balance

        Subsidiary of the parent company

        Dai-ichi Life Reinsurance Bermuda Ltd.

        —

        Reinsurance counterparty

        Reinsurance income

        22,665

        Reinsurance receivables

        22,155

        Ceding reinsurance commissions

        16,727

        Reinsurance payables

        3,236

        Note: The terms and conditions of the above transactions are determined based on market interest rates or market values.

      9. Amounts are rounded off to the unit stated.

    6. Breakdown of Ordinary Profit (Fundamental Profit)

      (millions of yen)

      Year ended March 31, 2024

      Year ended March 31, 2025

      Fundamental profit (loss) A

      (965)

      (5,296)

      Capital gains

      —

      —

      Gains on money held in trust

      —

      —

      Gains on investment in trading securities

      —

      —

      Gains on sale of securities

      —

      —

      Derivative transaction gains

      —

      —

      Foreign exchange gains

      —

      —

      Others

      —

      —

      Capital losses

      —

      665

      Losses on money held in trust

      —

      —

      Losses on investment in trading securities

      —

      —

      Losses on sale of securities

      —

      665

      Losses on valuation of securities

      —

      —

      Derivative transaction losses

      —

      —

      Foreign exchange losses

      —

      —

      Others

      —

      —

      Net capital gains (losses) B

      —

      (665)

      Fundamental profit plus net capital gains (losses)

      A + B

      (965)

      (5,961)

      Other one-time gains

      —

      —

      Reinsurance income

      —

      —

      Reversal of contingency reserve

      —

      —

      Reversal of specific reserve for possible loan losses

      —

      —

      Others

      —

      —

      Other one-time losses

      303

      2,356

      Ceding reinsurance commissions

      —

      —

      Provision for contingency reserve

      285

      257

      Provision for specific reserve for possible loan losses

      0

      1

      Provision for specific reserve for loans to refinancing countries

      —

      —

      Write-down of loans

      —

      —

      Others

      17

      2,097

      Other one-time profits (losses) C

      (303)

      (2,356)

      Ordinary profit (loss) A + B + C

      (1,269)

      (8,317)

    7. Unaudited Non-Consolidated Statement of Changes in Net Assets

      Year ended March 31, 2024 (millions of yen)

      Shareholders’ equity

      Capital stock

      Capital surplus

      Retained earnings

      Total shareholders’ equity

      Legal capital surplus

      Other retained earnings

      Retained earnings brought forward

      Balance at the beginning of the year

      47,599

      39,599

      (50,225)

      36,973

      Changes for the year

      Net loss for the year

      1,105

      1,105

      Net changes of items other than shareholders’ equity

      Total changes for the year

      —

      —

      (1,105)

      (1,105)

      Balance at the end of the year

      47,599

      39,599

      (51,330)

      35,867

      Valuation and translation adjustments

      Total net assets

      Net unrealized gains (losses) on securities,

      net of tax

      Total of valuation and translation adjustments

      Balance at the beginning of the year

      (117)

      (117)

      36,855

      Changes for the year

      Net loss for the year

      1,105

      Net changes of items other than shareholders’ equity

      10

      10

      10

      Total changes for the year

      10

      10

      (1,095)

      Balance at the end of the year

      (107)

      (107)

      35,760

      Year ended March 31, 2025 (millions of yen)

      Shareholders’ equity

      Capital stock

      Capital surplus

      Retained earnings

      Total shareholders’ equity

      Legal capital surplus

      Other retained earnings

      Retained earnings brought forward

      Balance at the beginning of the year

      47,599

      39,599

      (51,330)

      35,867

      Changes for the year

      Net loss for the year

      6,319

      6,319

      Net changes of items other than shareholders’ equity

      Total changes for the year

      —

      —

      (6,319)

      (6,319)

      Balance at the end of the year

      47,599

      39,599

      (57,650)

      29,547

      Valuation and translation adjustments

      Total net assets

      Net unrealized gains (losses) on securities,

      net of tax

      Total of valuation and translation adjustments

      Balance at the beginning of the year

      (107)

      (107)

      35,760

      Changes for the year

      Net loss for the year

      6,319

      Net changes of items other than shareholders’ equity

      44

      44

      44

      Total changes for the year

      44

      44

      (6,275)

      Balance at the end of the year

      (63)

      (63)

      29,484

      (Notes to Statement of Changes in Net Assets)

      1. Type and Number of Shares Outstanding (thousands of shares)

        At the beginning of the fiscal year ended

        March 31, 2025

        Increase

        Decrease

        As of March 31, 2025

        Shares outstanding

        Common stock

        4,149

        —

        —

        4,149

      2. Stock Acquisition Rights and Own Stock Acquisition Rights Not applicable.

      3. Dividends Paid Not applicable.

      4. Amounts are rounded off to the unit stated.

    8. Status of Claims Based on Insurance Business Act

      (millions of yen except percentages)

      As of March 31, 2024

      As of March 31, 2025

      Claims provable in bankruptcy, claims provable in rehabilitation and claims equivalent to these

      —

      —

      Doubtful claims

      —

      —

      Delinquent claims of three months or more

      —

      —

      Restructured claims

      —

      —

      Subtotal

      —

      —

      (Ratio to total)

      (―%)

      (―%)

      Performing loans

      1,675

      1,826

      Total

      1,675

      1,826

      Notes: 1. Claims provable in bankruptcy, claims provable in rehabilitation, and claims equivalent to these refer to those loans to debtors who are bankrupt for a reason such as commencement of bankruptcy proceedings, commencement of rehabilitation proceedings, and filing a petition for the commencement of rehabilitation proceedings and claims equivalent to such loans.

      1. Doubtful claims refer to those loans whose principal and interest are likely not collectible based on the contract due to the deterioration of the financial condition and business performance of the debtor despite not being bankrupt. (Excludes claims listed in Note 1.)

      2. Delinquent claims of three months or more refer to those loans whose principal and interest payment is three months or more overdue reckoned from the day following the scheduled payment date. (Excludes claims lists in Note 1 and Note 2.)

      3. Restructured claims refers to those loans for which terms more favorable to the borrower, such as reduction or waiver of interest, rescheduling of interest payments or principal repayments, or debt writeoff, has been agreed for purpose of reorganizing the debtor’s management or supporting the debtor. (Excludes claims listed in Notes 1 through 3.)

      4. Performing loans refer to those loans that are classified into categories other than those described in Note 1 through Note 4 for not having particular problems in the financial position and operating results of the debtor.

    9. Solvency Margin Ratio

      (millions of yen)

      As of March 31, 2024

      As of March 31, 2025

      Total solvency margin

      (A)

      39,064

      31,400

      Common stock, etc.

      35,867

      29,547

      Reserve for price fluctuations

      15

      17

      Contingency reserve

      1,662

      1,920

      General reserve for possible loan losses

      —

      —

      (Net unrealized gains (losses) on securities (before tax) and deferred hedge gains (losses) (before tax)) × 90% (Multiplied by 100% if losses)

      (144)

      (84)

      Net unrealized gains (losses) on real estate × 85% (Multiplied by 100% if losses)

      —

      —

      Policy reserves in excess of surrender values

      40,461

      52,960

      Qualifying subordinated debt

      —

      —

      Excluded portion of policy reserve in excess of surrender values and qualifying subordinated debt

      (38,798)

      (52,960)

      Excluded items

      —

      —

      Others

      —

      —

      Total risk

      (R R )2(R R R )2 R

      1 8 2 3 7

      4

      (B)

      2,640

      3,017

      Insurance risk

      R1

      718

      739

      3rd sector insurance risk

      R8

      935

      1,054

      Assumed investment yield risk

      R2

      6

      6

      Guaranteed minimum benefit risk

      R7

      —

      —

      Investment risk

      R3

      1,913

      2,265

      Business risk

      R4

      107

      121

      Solvency margin ratio

           (A)         x 100 (1/2) x (B)

      2,958.5%

      2,081.5%

      Note: The figures above are calculated based on Articles 86 and 87 of the Enforcement Regulations of the Insurance Business Act, and Announcement No. 50, Ministry of Finance, 1996.

    10. Status of Separate Account for the Fiscal Year Ended March 31, 2025

      Not applicable.

    11. Consolidated Financial Summary

Not applicable.

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Dai-ichi Life Holdings Inc. published this content on May 15, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 15, 2025 at 05:40 UTC.