Lifenet Insurance : European Embedded Value as of March 31, 2021

NEWS RELEASE

May 13, 2021

Ryosuke Mori, President

LIFENET INSURANCE COMPANY

(Securities Code: 7157, TSE Mothers)

European Embedded Value as of March 31, 2021

EEV as of March 31, 2021: 95,140 million yen

TOKYO, May 13, 2021 - LIFENET INSURANCE COMPANY (TSE Mothers 7157, President Ryosuke Mori, URL: https://ir.lifenet-seimei.co.jp/en/) hereby announces its Embedded Value ("EV") as of March 31, 2021.

EV is an indicator used to measure the corporate value and earnings performance of life insurance companies. EV is the total of adjusted net worth, based on balance sheet values, and the value of in-force business, based on projected cash flows from policies-in-force. In general, life insurance policies provide a steady level of premium income over a long period of time, while advertising expenses, policy appraisal costs, etc. are expensed intensively in a short period around the time of policy sales. This timing difference in recognizing revenues and expenses and the long time it takes before profits are recognized after a policy is sold are the characteristics of life insurance accounting. As these characteristics make it difficult to evaluate a life insurance business based on single-year financial results, disclosing EV is seen as a useful way of giving investors a more accurate picture of operating conditions. European Embedded Value ("EEV") is the EV calculated in accordance with the EEV Principles and Guidance.

Lifenet's EEV as of March 31, 2021 and the summary of the results are as follows:

Summary of EEV results as of March 31, 2021

• Lifenet's EEV as of March 31, 2021 was 95,140 million yen, an increase of 21,708 million yen from the end of the previous fiscal year.
• Adjusted net worth was 18,990 million yen, an increase of 6,437 million yen from the end of the previous fiscal year, mainly due to the issuance of new shares by way of offering made outside of Japan.
• Value of in-force business was 76,149 million yen, an increase of 15,270 million yen from the end of the previous fiscal year, mainly due to acquisition of new business and updates made to expense assumptions.
• Value of new business was 5,798 million yen, an increase of 2,820 million yen from the previous fiscal year, mainly due to an increase in the volume of new business acquired and updates made to expense assumptions.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE

EEV as of March 31, 2021			(In millions of yen)
		Mar. 31, 2020	Mar. 31, 2021	Increase (Decrease)
EEV	73,431	95,140	21,708
	Adjusted net worth*1	12,553	18,990	6,437
	Value of in-force business*2	60,878	76,149	15,270
Value of new business			(In millions of yen)
		Mar. 31, 2020	Mar. 31, 2021	Increase (Decrease)
Value of new business*3	2,977	5,798	2,820

*1 Adjusted net worth is defined as the excess of the market value of a life insurance company's assets over the market value of its policy reserves and other liabilities, and is considered to be the value attributable to the company's shareholders. In other words, it is calculated as the sum of the total net assets, appropriate adjustments for unrealized gains/losses and other items.

*2 Value of in-force business is the present value at the valuation date of future after-tax profits distributable to shareholders from in-force business as of the valuation date, calculated under a set of assumptions.

*3 Value of new business represents the impact on the EV of new business written during the fiscal year, calculated applying the same assumptions as those used for the EEV. New business used for value calculation is defined as that arising from the sale of new life insurance policies during the fiscal year and excludes future new business.

About Lifenet

URL：https://ir.lifenet-seimei.co.jp/en/

Remembering the original purpose of life insurance - mutual support - LIFENET INSURANCE COMPANY was founded with the goal of offering simple, convenient and competitively priced products and services based on the highest levels of business integrity. We sell these products and services directly to customers over the Internet. We aim to be the leading company driving the growth of the online life insurance market.

Contact:

Investor Relations, Corporate Planning Department

Tel: [phone]

e-mail:[e-mail]

Disclaimer: This is a summarized translation of the original Japanese document, prepared and provided solely for readers' convenience. In case of any discrepancy or dispute, the Japanese document prevails.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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May 13, 2021

LIFENET INSURANCE COMPANY

Disclosure of European Embedded Value

as of March 31, 2021

LIFENET INSURANCE COMPANY ("Lifenet" or "the company") is disclosing its European

Embedded Value ("EEV") results as of March 31, 2021.

Contents
Contents ....................................................................................................................................	1
1.	Outline of EEV...................................................................................................................	2
2.	EEV results of Lifenet.........................................................................................................	4
3.	Movement Analysis ............................................................................................................	9
4.	EEV Methodology ............................................................................................................	11
5.	Principal EEV Assumptions ...............................................................................................	15
6.	Sensitivities ......................................................................................................................	18
7.	Notes on the Use of the Information ...................................................................................	20
8.	Third Party Opinion ..........................................................................................................	21

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1. Outline of EEV

1. What is EV?

The income and expenses of life insurance contracts are typically not matched in timing of occurrence, with substantial acquisition and other costs in the first year and with a delay between acquisition of the contract and the emergence of profit. This makes it difficult to evaluate a life insurance operation on the basis of a single year's income and outgo. Embedded Value ("EV"), calculated as the sum of net asset value and the present value of future after-tax shareholder profits from the in-force business at the valuation date, has been adopted among life insurers in Europe, Canada, Japan and elsewhere as an approach to the valuation of a life insurer and to the evaluation of its performance.

1. What is EEV?

European Embedded Value ("EEV") is the EV calculated in accordance with the EEV Principles and Guidance.

The EEV Principles and Guidance were published in May 2004 by the CFO Forum1, a group consisting of CFOs from leading European insurance companies. The aim of the EEV Principles and Guidance is to improve the consistency and transparency of the financial reporting of embedded values. Additional EEV Guidance was published by the CFO Forum in 2005 which covered sensitivities and aspects of disclosure.

In May 2016 the EEV principles were amended by the CFO Forum to permit alignment with methodology and assumptions applied for Solvency II, which has been effective since January 2016. In addition, the European Insurance CFO Forum Market Consistent Embedded Value Principles©2 ("MCEV Principles") were published in June 2008 by the CFO Forum with more clearly defined allowances for risk. Revisions to these MCEV Principles were published in October 2009 and in May 2016.

1. EEV Approach

The allowance for risk in the shareholder cash flows is a key feature of the EEV Principles. Lifenet's EEV has been calculated following the EEV Principles and Guidance, using a bottom-up market- consistent approach, in which the discount rate is set individually for each product or cash flow according to the risk characteristics of the product or cash flow.

EEV is calculated such that future cash flows arising from assets and liabilities are valued consistently with cash flows arising from similar traded market instruments, with allowance included for non- traded or non-diversifiable risk.

1. http://www.cfoforum.nl/
2. Copyright © Stichting CFO Forum Foundation 2008

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These approaches have been increasingly adopted among leading European insurers; moreover, the

MCEV Principles define a bottom-up market consistent approach.

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