Dai ichi Life : February 14, 2022 Presentation Material PDF

Financial Results

for the Nine Months Ended December 31, 2021

February 14, 2022

Dai-ichi Life Holdings, Inc.

Contents

 Key Highlights	P.2
 Group Companies Performance Overview	P.8
	Group EEV	P.17
	Reference Data	P.20

Currency Exchange Rates(TTM)

As of end	¥/US$	¥/Euro	¥/AU$
December 2021	¥115.02	¥130.51	¥83.42
September 2021	¥111.92	¥129.86	¥80.46
March 2021	¥110.71	¥129.80	¥84.36
December 2020	¥103.50	¥126.95	¥78.84
September 2020	¥105.80	¥124.17	¥75.49

Group Company Name Abbreviation, Equity Share and Fiscal Year

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

1

Key Highlights

1. [New Business]	DL is still in the process of recovery and overseas remains robust despite new waves of Covid-19
▶ Domestic	・ Increased by 56% YoY. DL and DFL achieved significant increase from sales activities restraints in the previous year. NFL continued steady growth.
New Business ANP	Decreased by 6% compared to the pre-Covid period. DL and DFL decreased by 12% and 5% respectively, NFL increased by 48%.
▶ Domestic	・ Approx. 90% progress against revised forecast in Nov with 88% at DL, in-line considering expected increase in unit cost to be reflected at FY result.
Value of New Business	Policy conversions with low additional profit contribution at DL that prevailed in 1H, slightly decreased to approx. 20% of the total number of new
	contacts in 3Q (Oct-Dec) vs 30% in 1H.
▶ Overseas	・ Increased by 30% YoY driven by steady expansion at PLC and TAL. DLVN (Vietnam) maintained an increase YTD despite the impact of lock-down.
New Business ANP	Decreased by 32% compared to the pre-Covid period, impacted by a large scale group insurance contract acquired at TAL in FY2019.
	Group total new business ANP increased by 3% excluding impact from the large contract at TAL. (excl. exchange rate impact).
2. [Group Profit]	Steady progress against the revised forecast in November, within our expectations

• Group Adjusted Profit ・ Increased by 51% YoY to ¥234.3 billion, thanks to the improvement of investment income at DL and profit recovery at PLC.

At 87% progress against revised forecast, within our expectation considering expected additional reinsurance ceding at DL, one-time expense to be incurred at DFL due to cancellation of a part of coinsurance type reinsurance contracts (surplus relief) in 4Q and current financial market volatility.

▶ Consolidated	・ Increased by 77% YoY to ¥292.9 billion, a progress rate of 84%.
Net Income	Group Tax Sharing System is expected to be introduced as scheduled from the next fiscal year (there is no change in the assumption that a one -
	time gain to be incurred in 4Q due to an increase in deferred tax assets).

3. [Economic Value]	Positive in generally stable financial market, steady progress of market-related risk reduction at DL
(Estimate)
▶ Group EEV	・ Increased by 8% to ¥7,550 billion YTD mainly due to increase at DL. (almost flat vs end of Sep.)
▶ ESR	・ Increased by 22%pt YTD to 225% due to increase in capital and steady progress of risk reduction. (increased by 5%pt vs end of Sep.)

COVID-19 related Insurance Claims(1)

1. Identified as of Dec. 31, 2021. Exchange rates as of end of Dec. 2021 applied to foreign currencies, after accounting for reinsurance.
2. Cumulative total since the start of measurement (March 2020).

Death Benefit (Payment)	Hospitalization Benefit
Cases	Amount	Cases	Amount

Domestic	Oct.-Dec. 2021	373	¥2.5 billion	22,140	¥2.3 billion
Cumulative(2)	2,129	¥12.7 billion	61,935	¥6.4 billion
Overseas	Oct.-Dec. 2021	2,686	¥15.8 billion	6,444	¥0.4 billion
Cumulative(2)	14,643	¥63.7 billion	21,399	¥1.5 billion	2

New Business - New Business and In-force Business ANP

• Domestic business increased by 56% YoY when sales activities constraints were implemented, partially due to the contribution of new products at DL and DFL, and product revisions at NFL. It decreased by 6% compared to the pre-Covid period. Although the number of new policies at DL exceeded the pre- Covid level, DL is still in the process of recovery due to sales activities relied on policy conversions of existing policyholders.
• Overseas business increased by 30% YoY, reflecting strong sales of variable annuities at PLC and steady sales at TAL. DLVN maintained an increase YTD despite the impact of lock-down. Excluding impact of the large-scale group insurance contract acquired at TAL in FY2019, group total new business ANP increased by 3% compared to pre-Covid period.

New Business and In-force Business ANP

New Business ANP

In-force Business ANP

New Business ANP

(¥ in billions)	(14.7%)

((15.9％) excl. exchange rate impact)

+2.5%

excl. the impact of large-scale contract at TAL

and exchange rate

267.0

227.6

+50.0％

(+47.3％)

151.7

Domestic life

protection type products share

31% 35% 34%

In-force Business ANP

+1.8%

(+0.4％ excl. exchange rate impact)

4,054.6 4,126.9

			FY2020	FY2021	Change		Change
				vs FY2019
			3Q(YTD)	3Q(YTD)	YoY
( in billions)		3Q(YTD)
Domestic	99.8	156.0	+56.2%		(5.9%)
	DL	39.9	57.9	+45.1%		(12.4%)
		o/w Third sector	22.2	37.9	+70.3%		(7.4%)
	DFL	51.0	87.2	+71.0%		(5.4%)
		o/w DL channel	9.0	16.4	+82.7%	(25.9%)
	NFL	8.8	10.7	+21.3%	+47.8%
		o/w DL channel (1)	4.5	5.5	+21.4%	+148.0%
Overseas	51.8	71.6	+38.0%		(29.3%)
+30.2%		(32.3%)
	PLC	29.9	42.4	+41.9%		+58.7%
	+34.2%		+53.0%
	TAL(2)	6.5	10.2	+55.8%	(82.7%)
	+47.2%	(84.1%)
	DLVN	15.3	18.7	+22.7%	+23.4%
	+15.2%	+18.4%
	DLKH/DLMM	0.08	0.10	+22.5%	+443.1%
	+27.7%	+474.2%

As of	As of	Change
Mar-21	Dec-21
3,078.5	3,057.5	(0.7%)
(1.0%)
2,076.9	2,061.0	(0.8%)
696.8	707.7	+1.6%
861.0	856.5	(0.5%)
(1.7%)
140.5	139.9	(0.4%)
976.0	1,069.3	+9.6%
+4.9%
518.7	573.3	+10.5%
+2.2%
384.0	405.6	+5.6%
+6.8%
73.1	90.1	+23.2%
+13.2%
0.14	0.20	+41.0%
+54.2%

FY2019

FY2020

FY2021

As of

As of

Dai-ichi Life Group

151.7

227.6

+50.0%

(14.7%)

4,054.6

4,126.9

+1.8%

+47.3%

(15.9%)

+0.4%

3Q(YTD)

3Q(YTD)

3Q(YTD)

Mar-21

Dec-21

% change shown lower excludes exchange rate impact

Domestic

Overseas

Domestic

Overseas

3

(1) From 3Q of FY2020 measurement of NFL sales at DL channel reflects refinement. (2)

From 1Q of FY2020 new business ANP calculation standard was revised and data for prior periods was adjusted retroactively.

Group Profit - Group Adjusted Profit and Net Income

• Group adjusted profit increased by 51% to ¥234.3 billion thanks to the significant recovery of investment income at DL and the large improvement of non- operating income despite the increase of insurance claims at PLC as well as profit increase at DLVN.
• Net income increased by 77% to ¥292.9 billion, after adding contribution of MVA-related gains (losses) at DFL to the group adjusted profit.

Drivers affecting Group Adjusted Profit

(¥ in billions)	Domestic +¥60.1bn	Overseas +¥18.3bn
		(+) Underlying profit
		(+) Deconsolidation of JH, etc.

Adjusted Profit to Net Income

(+) Positive spread

(+) Coinsurance type reinsurance

(ー) Impact of interest rate change, etc.

(ー) Losses from core insurance activities	(surplus relief), etc.

DFL

Others

Amortization

of goodwill

(+) Profit increase at DLVN

MVA related gains(losses), etc.

Group	(+) Gains on financial derivatives
Adjusted Profit	(+) Gains on sale of securities
(+) Foreign exchange gains
FY2020	(ー) Reinsurance ceding, etc.
3Q(YTD)

DL DL DFL

Fundamental Capital,

Profit(1) etc.(1)

(＋) Reversal of CECL allowance

(＋) Derivative/fixed income gains(losses) improvement

(＋) Operating income increase (Stable Value Products, etc.)

(－) Increase of claims payment (Retail business, etc.), etc.

NFL	PLC	TAL	Other	Asset
			Overseas	Manage-
				ment

Group	Net Income
Adjusted Profit
FY2021	FY2021
3Q(YTD)	3Q(YTD)

DLRe,

HD, etc.

(Drivers affecting adj. profit to net income)

FY2021	355.0	(202.6)	28.1	(5.5)	40.3	5.5	11.0	4.1	(1.7)	234.3		+63.5	(4.9)	(0.0)	292.9
3Q(YTD)
FY2020	323.2	(226.2)	29.5	(11.7)	23.2	10.1	5.2	5.4	(3.4)	155.4		+12.5	(4.1)	+1.4	165.2
3Q(YTD)
																4
(1) Fundamental profit before tax. "DL Capital etc." includes changes in corporate tax, net capital and non-recurrent gains(losses).