Financial Results
for the Six Months Ended September 30, 2022
November 14, 2022
Dai-ichi Life Holdings, Inc.
Contents
| Key Highlights | P.2 |
Group Companies Performance Overview | P.14 | |
| Group EEV | P.23 |
| Reference Data | P.29 |
Currency Exchange Rates(TTM)
As of end | ¥/US$ | ¥/Euro | ¥/AU$ |
September 2022 | ¥144.81 | ¥142.32 | ¥94.17 |
June 2022 | ¥136.68 | ¥142.67 | ¥93.90 |
March 2022 | ¥122.39 | ¥136.70 | ¥92.00 |
December 2021 | ¥115.02 | ¥130.51 | ¥83.42 |
September 2021 | ¥111.92 | ¥129.86 | ¥80.46 |
June 2021 | ¥110.58 | ¥131.58 | ¥83.12 |
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
2Q Results | Profit affected by an increase in COVID-19 payment in Japan and rising overseas interest rates | |||||||
▸ Down 18% YoY: The increase in hospitalization payment was offset by positive spread and | ||||||||
¥127.9bn | ||||||||
Group Adj. Profit | absence of reinsurance ceding cost at DL. Adj. profit was affected by non-operating losses at | |||||||
Profit | PLC and increase in regular policy reserves at DFL due to rising overseas interest rates. | |||||||
▸ Down 39% YoY: In addition to the decrease in group adj. profit, net income was affected by | ||||||||
Net Income | ¥108.2bn | |||||||
deterioration of MVA related valuation losses due to rising interest rates. | ||||||||
▸ Up 14% YoY (excl. exchange rate impact): While DL/NFL sales decreased, DFL sales grew | ||||||||
Group NB ANP | ¥185.5bn | |||||||
New Business | steadily thanks to rising overseas interest rates. PLC/DLVN also increased in overseas. | |||||||
(NB) | ▸ Down 12% YoY (excl. exchange rate impact): While significant growth at DFL/PLC thanks to | |||||||
Group VNB | ¥68.5bn | |||||||
strong sales, group VNB decreased YoY due to weak results at DL/NFL. | ||||||||
Economic | Group EEV | ¥7,083.8bn | ▸ Down 3% vs Mar-2022 (Adjusted): Positive effect of rising domestic interest rates was | |||||
Value | outweighed by the negative impacts of rising overseas interest rates and falling equity markets. | |||||||
FY2022 Forecast | Downward revision of full-year profit and VNB forecasts based on 2Q progress | |||||||
Dividend per share forecast remains unchanged from initial guidance | ||||||||
approx. | ▸ The increase in hospitalization benefit and currency hedging cost, and deterioration of non- | |||||||
Group Adj. Profit | ||||||||
¥240.0bn | operating result at PLC were reflected. | |||||||
Forecast | ||||||||
approx. | ||||||||
Group VNB | ▸ While DFL/PLC are expected to increase, weak DL products sales affected on forecast. | |||||||
¥135.0bn | ||||||||
Dividend Dividend per share | ¥86 (forecast) | ▸ Dividend per share forecast remains unchanged at ¥86 (+¥3 YoY). | ||||||
▸ FY2022 remittances from subsidiaries are expected to secure our estimate (Approx.¥240bn) | ||||||||
Topics Commencement of TOB to acquire ipet Holdings as a wholly owned subsidiary
- Acquire a strong presence in growth domestic market, diversify business portfolio, improve risk profile, and expand points of
contact with customers. | 2 |
Highlights: Profit - Group Adjusted Profit and Net Income
- Group adj. profit decreased by 18% YoY. While gains from core insurance activities deteriorated due to increase in COVID-19 hospitalization payments, DL profit increased thanks to an increase in investment income and improvement of capital gains due to Yen depreciation, and absence of reinsurance ceding cost. DFL profit was affected by an increase in regular policy reserves for foreign currency denominated products due to rising overseas interest rates. PLC was also affected by non-operating (valuation) losses.
- Net income decreased by 39%, affected by the deterioration of valuation losses related to interest rates fluctuation (on trading securities) included in the MVA related gains (losses) at DFL.
Drivers affecting Group Adj. Profit
(¥ in billions) | Domestic +¥3.1bn | Overseas (¥24.2bn) | Adj. Profit to Net Income |
(+) Positive spread | (ー) Increase in foreign exchange | (+) Impact from interest rates movement |
(ー) Gains from core insurance activities | policy reserves | (+) Underlying profit |
(Impact of COVID-19 related claims approx.¥50.0bn) | (ー) Losses from sale of securities, etc. | (Former Westpac life (TLIS(2)) started contribution), etc. |
MVA-related gains (losses) | (¥16.2)bn |
- o/w MVA gains (losses) | +¥18.1bn |
- o/w deterioration of valuation losses related to interest rates fluctuation (¥34.2)bn
(+) Non-recurrent gains | |
(Absence of reinsurance ceding cost) | |
(+) Derivative transactions gains and foreign exchange gains | |
Group | (ー) Gains on sale of securities, etc. |
Adj. Profit
FY2021 2Q(YTD)
(+) Operating income
(ー) Valuation losses on bonds and equities due rising interest rates
(ー) MODCO losses, etc.
Amortization of
goodwill
DFL | Others |
MVA related | |
gains(losses), etc. | |
Group | |
Adj. Profit | Net Income |
FY2022 2Q(YTD) | FY2022 2Q(YTD) |
DL | DL | DFL | NFL | PLC | TAL | DLVN | Other | Asset | DLRe, | |||||||||
Fundamental | Capital, | Overseas | Manage- | HD, etc. | (Drivers affecting adj. profit to net income) | |||||||||||||
Profit(1) | etc.(1) | ment | ||||||||||||||||
FY2022 | 138.2 | (26.3) | 5.6 | (4.2) | (5.2) | 15.5 | 7.8 | 1.3 | 2.4 | (7.1) | 127.9 | (16.2) | (4.1) | +0.6 | 108.2 | |||
2Q(YTD) | ||||||||||||||||||
FY2021 | 184.0 | (90.6) | 20.1 | (3.4) | 32.8 | 3.3 | 6.6 | 0.8 | 2.8 | (0.3) | 156.3 | +25.4 | (3.2) | (0.1) | 178.4 | |||
2Q(YTD) | ||||||||||||||||||
(1) Fundamental profit before tax. "DL Capital etc." includes changes in corporate tax, net capital and non-recurrent gains(losses). | 3 | |||||||||||||||||
(2) Official name is: TAL Life Insurance Services Limited | ||||||||||||||||||
Highlights: New Business - New Business and In-force Business ANP
-
Domestic new business ANP increased by 22% YoY thanks to steady growth at DFL reflecting attractiveness of DFL products in the rising overseas interest rates. DL continued a reactionary decline from relatively strong sales of new medical type products in the previous fiscal year and a shift in the sales activities of sales reps towards DFL products. NFL showed relatively weak sales due to an increase in competition.
(Total new business ANP of DL channel including DFL/NFL products sales increased by 4% YoY.) - In overseas, new business ANP increased by 23% YoY. Excluding exchange rate impact, ANP increased by 0.6% thanks to PLC/DLVN growth. In-force business ANP increased due to the consolidation of former Westpac life closed the deal on August 1.
New Business and In-force Business ANP
New Business ANP | In-force Business ANP |
New Business ANP | In-force Business ANP | |||||||||||
(¥ in billions) | +21.7% | +6.0% | ||||||||||
(+14.5% excl. exchange rate impact) | (+1.6% excl. exchange rate impact) | |||||||||||
185.5 | 4,489.8 | |||||||||||
4,234.3 | ||||||||||||
152.4
Domestic life
protection type products share
[figures in brackets for DL]
34% | 19% | ||||||||||
[73%] | [70%] | ||||||||||
FY2021 | FY2022 | As of | As of | ||||||||
2Q(YTD) | 2Q(YTD) | Mar-22 | Sep-22 | ||||||||
Domestic | Overseas | Domestic | Overseas | ||||||||
FY2021 | FY2022 | |
( in billions) | 2Q(YTD) | 2Q(YTD) |
Domestic | 104.0 | 125.8 |
DL | 39.0 | 25.2 |
o/w Third sector | 26.2 | 16.3 |
DFL | 57.7 | 94.6 |
o/w DL channel | 9.6 | 25.1 |
NFL | 7.1 | 5.8 |
o/w DL channel | 3.5 | 3.7 |
Overseas | 48.3 | 59.7 |
PLC | 27.5 | 35.4 |
TAL | 5.3 | 4.9 |
DLVN | 15.4 | 19.0 |
DLKH/DLMM | 0.06 | 0.28 |
Dai-ichi Life Group | 152.4 | 185.5 |
Change | Change | As of | As of | |
vs FY2019 | Change | |||
YoY | Mar-22 | Sep-22 | ||
2Q(YTD) | ||||
+20.9% | +11.5% | 3,090.1 | 3,099.9 | +0.3% |
(2.0%) | ||||
(35.3%) | (40.8%) | 2,052.7 | 2,029.6 | (1.1%) |
(37.9%) | (38.7%) | 708.8 | 707.7 | (0.1%) |
+63.8% | +44.0% | 898.3 | 937.7 | +4.4% |
+162.0% | +63.1% | (3.5%) | ||
(18.3%) | +33.9% | 139.0 | 132.5 | (4.7%) |
+5.6% | +113.1% | |||
+23.5% | +62.8% | 1,144.1 | 1,389.9 | +21.5% |
+0.6% | +27.8% | +8.9% | ||
+28.7% | +92.9% | 597.9 | 708.5 | +18.5% |
+4.2% | +52.1% | (0.3%) | ||
(7.3%) | (43.2%) | 449.7 | 559.9 | +24.5% |
(20.8%) | (56.1%) | +21.6% | ||
+23.4% | +98.9% | 96.1 | 120.8 | +25.7% |
+0.4% | +55.0% | +6.5% | ||
+370.2% | +4,984.3% | 0.29 | 0.57 | +92.4% |
+297.5% | +4,302.1% | +63.7% | ||
+21.7% | +24.1% | 4,234.3 | 4,489.8 | +6.0% |
+14.5% | +15.5% | +1.0% | ||
% change shown lower excludes exchange rate impact
4
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Dai-ichi Life Holdings Inc. published this content on 14 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2022 05:41:02 UTC.