Dai ichi Life : Supplementary Materials for the Three Months Ended June 30, 2021 (Dai-ichi Life Holdings, Inc.)

[Unofficial Translation]

August 11, 2021

Seiji Inagaki

President and Representative Director

Dai-ichi Life Holdings, Inc.

Code: 8750 (TSE First section)

Supplementary Materials for the Three Months Ended June 30, 2021 (Dai-ichi Life Holdings, Inc.)

Financial Results

for the Three Months Ended June 30, 2021

August 11, 2021

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$
June 2021	¥110.58	¥131.58	¥83.12
March 2021	¥110.71	¥129.80	¥84.36
December 2020	¥103.50	¥126.95	¥78.84
June 2020	¥107.74	¥121.08	¥73.88
March 2020	¥108.83	¥119.55	¥66.09

Group Company Name Abbreviation, Equity Share and Fiscal Year

Domestic Life		Equity Share	Fiscal Year
DL	Dai-ichi Life		100％
DFL	Dai-ichi Frontier Life		100％	Apr -Mar
NFL	Neo First Life		100％
Overseas Life
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. [Results]

Domestic life new sales was close to pre-Covid-19 level, and profit progress exceeded our expectation

• New Business ANP ・ Domestic life new business recovered significantly compared to previous year when DL and DFL had sales constraints due to Covid-19. NFL continued expanding new business sales.
• • 
    Compared to pre-Covid-19 1Q FY2019, domestic sales reached similar level with DFL and NFL increasing while DL decreasing by 5%.
  • Overseas life new business increased steadily by 40% YoY(excl. exchange rates impact) thanks to contribution from PLC and DLVN.
• Group Adjusted Profit ・ Group adjusted profit increased to ¥113.3 billion (¥16.2 billion in 1Q FY2020), recovered from sharp deterioration impacted by increase in the financial markets volatility last year.
• • Although the progress is relatively high at 47% against our forecast mainly due to contribution from higher investment related gains at DL in the favorable financial market environment, there is no change in the full-year forecast considering budgeted reinsurance ceding at DL, recent rebound of Covid-19 infection and increase of financial markets volatility.

2. [Economic Value]

(Estimate)

• Group EEV
• Domestic Life VNB
• ESR

Group EEV is up 4% to approx. ¥7,260 billion and ESR is up 12% points to approx. 215% YTD

• Group EEV increased mainly due to contribution from DL in the favorable interest rates and equity market condition during 1Q.
• Domestic life value of new business was approx. ¥25 billion, approx. 20% progress rate vs full-year forecast.
• Integrated risk amount slightly decreased due to progress in market risk reduction and capital increased due to changes in financial markets.

3. [Topic]

TAL acquires Westpac Life a subsidiary of Westpac Group in Australia

• Investment Amount ・ TAL acquires Westpac Life for AU$900 million(¥72.8 billion) with total investment amount of AU$1.25 billion(¥101.0 billion), o/w AU$925

Capital Funding

million(¥74.8 billion) capital from holdings in addition to available funds at TAL. The deal to be completed by August 2022 - January 2023.

• Strategic Significance ・ Contributing to improve group risk profile through taking insurance risk and further strengthening our business foundation in the Australian

Financial Contribution protection-type product market.

• Expected profit contribution of approx. AU$75 million(¥6.1 billion) and cash contribution of AU$135 million(¥10.9 billion) in the next medium-

term management plan (From FY2024)	Death Benefit (Payment)	Hospitalization Benefit

	COVID-19 related Insurance Claims			Cases	Amount	Cases	Amount
		Apr.-Jun. 2021	494	¥2.8 billion	9,875	¥1.0 billion
		Japan
(1)	Identified as of June 30, 2021. Exchange rates as of end of Jun.2021	Cumulative(2)	1,270	¥7.4 billion	22,018	¥2.1 billion
applied to foreign currencies, after accounting for reinsurance.	Overseas(1) Apr.-Jun. 2021	2,011	¥5.6 billion	2,237	¥0.2 billion
(2)	Cumulative total since the start of measurement (March 2020).	2
			Cumulative(2)	9,128	¥37.8 billion	3,580	¥0.4 billion

Highlights: Sales Performance

• Domestic life new business recovered compared to previous year when DL and DFL had sales constraints. NFL, which had been steady sales even during Covid-19, continued expanding new business sales and was up 47% YoY.
  Compared to pre-Covid-19 1Q FY2019, domestic life new business increased by 2.5%, with DFL and NFL increasing while DL decreasing by 5%.
• Overseas life new business increased by 40% YoY and 22% vs 1Q FY2019 (excl. exchange rates impact). PLC and DLVN had solid growth of 40% and 64% respectively YoY. Domestic life and overseas life as a whole increased 7.5% vs 1Q FY2019.

New Business and In-force Business ANP

	New Business ANP		In-force Business ANP
(¥ in billions)
+7.7%	+0.8%
(+7.5％ excluding exchange rate impact)		(+0.1％ excluding exchange rate impact)

		New Business ANP
	FY2020	FY2021	Change	Change
	vs FY2019
	１Q	1Q	YoY
( in billions)	1Q
Domestic Life	20.9	59.2	+182.9%		+2.5%
DL	7.2	19.8	+174.3%		(4.7%)

In-force Business ANP

As of	As of	Change
Mar-21	Jun-21
3,078.5	3,072.4	(0.2%)
(0.1%)
2,076.9	2,072.3	(0.2%)

83.9

77.9

+120.9％

(+118.7％)

38.0

Domestic life

protection type products share

29% 35% 31%

FY2019 FY2020 FY2021

1Q １Q 1Q

4,054.6 4,089.0

As of	As of
Mar-21	Jun-21

		o/w Third sector	4.1	13.3	+221.1%	(3.5%)
	DFL	11.1	35.7	+218.8%	+2.0%
		o/w DL channel	2.1	5.1	+136.0%	(43.6%)
	NFL	2.4	3.6	+46.7%	+85.7%
		o/w DL channel (1)	1.2	1.7	+40.8%	+274.4%
Overseas Life	17.0	24.7	+44.9%			+22.8%
+40.1%			+21.9%
	PLC	10.4	14.8	+42.4%			+69.6%
	+40.0%			+70.0%
	TAL(2)	2.2	2.4	+5.0%			(65.1%)
	(6.6%)			(68.3%)
	DLVN	4.3	7.5	+71.3%			+65.8%
	+64.2%			+65.8%
	DLKH/DLMM	0.01	0.03	+173.1%			+3,335.4%
	+170.8%			+3,339.8%
Dai-ichi Life Group	38.0	83.9	+120.9%			+7.7%
+118.7%			+7.5%

696.8	701.1	+0.6%
861.0	859.5	(0.2%)
+0.3%
140.5	140.5	+0.0%
976.0	1,016.6	+4.2%
+0.5%
518.7	552.4	+6.5%
(0.4%)
384.0	381.6	(0.6%)
+0.9%
73.1	82.3	+12.6%
+5.5%
0.14	0.20	+38.0%
+33.9%
4,054.6	4,089.0	+0.8%
+0.1%

Domestic Overseas

	Domestic		Overseas

% change shown lower excludes impact from currency fluctuation

(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.

3