Securities Code: 7157 TSE Mothers

Presentation

Material for

Investors

First Quarter

for Fiscal 2020

August 11, 2020

LIFENET is...

Comprehensible

Cost-Competitive

Convenient

  • Remembering the original purpose of life insurance - mutual support
  • Helping our customers embrace life more fully

1

Overview of 1Q for Fiscal 2020

Annualized premium1 of

policies-in-force

16,461 million yen

(106.1% vs end of FY2019)

Adjusted profit2

854 million yen

Notable Achievements

Annualized premium1 of

new business

1,166 million yen

(Y-on-Y141.9%)

EEV (European Embedded Value)

75,921 million yen

(Adjusted incremental EV3 2,122 million yen)

  • Launched new white label product with brand of Seven Financial Service
  • Ranked #1 in major price comparison websites
  • Raised new capital in July

1.

The amount of money equivalent to what is to be paid to have the insurance coverage for one year. All payments are monthly installments, thus the annualized

premium is calculated as multiplying the monthly premium by 12 months.

2.

See page 9, 32 and 33 for details.

2

3.

Adjusted incremental EV consisted of components accurately reflecting our business growth for fiscal 2020, see page 31 for details.

Annualized Premium /

Number of Policies-in-Force

  • Annualized premium of policies-in-force1 (JPY billions)
  • Number of policies-in-force

16.4

13.6

387,775

11.5

321,829

Accelerated

9.5

10.2

growth pace

272,830

228,846

243,610

Year-on-year

Annualized

premium 120.6%,

number of policies-

in-force120.5%

2016/06 '17/06

'18/06

'19/06

'20/06 YY/MM

1. The amount of money equivalent to what is to be paid to have the insurance coverage for one year. All payments are monthly installments, thus the annualized

3

premium is calculated as multiplying the monthly premium by 12 months.

Breakdown of Policies-in-Force

  • Improved surrender and lapse ratio

Component

'20/03

'20/06

ratio

Number of policies-in-force

365,171

387,775

100%

- Term Life

175,713

186,984

48%

- Whole-life Medical

100,280

106,508

27%

- Term Medical Care

9,105

9,041

2%

- Long-term Disability

54,665

56,416

15%

- Cancer

25,408

28,826

7%

Sum insured of policies-in-force1

2,565,269

2,701,514

(JPY millions)

Number of policyholders

232,537

246,432

1Q of FY2019

1Q of FY2020

(Reference) Surrender and lapse ratio2

7.6

5.5%

1. Sum insured of polices-in-force are the sum of death coverage, and do not include third-sector insurance.

2. The surrender and lapse ratio is the annual equivalent of the monthly number of policies surrendered and/or lapsed divided by the monthly average number of

4

policies-in-force.

Annualized Premium /

Number of New Business

: Annualized premium of new business (1Q of fiscal year, JPY millions)

: Number of new business (fiscal year)

: Number of new business (1Q of fiscal year)

1,166

80,911

39,175

29,741

341

343

7,307 7,793

  • Achieved historical

64,435

record high on a

822

quarterly basis

572

28,136 Year-on-Year

annualized

premium 141.9%,

19,117

number of new

13,285

business 147.2%

2016 '17

'18

'19 '20/1Qfiscal year

5

Marketing Efficiency

: Marketing expenses per new business (JPY thousands)

: Marketing expenses / Annualized premium of new business

75

Significantly

67

65

improved

61

53

under COVID-19

1.7

environment

1.3

1.5

1.5

1.2

Aim to improve

from the level in

fiscal 2019

(fiscal year) 2016

'17

'18

'19

'20/1Q

Marketing

1,822

2,627

4,216

6,146

1,506

expenses

(JPY millions)

6

Operating Expenses Ratio

  • Operating expenses ratio¹ (%)

: Insurance premiums (JPY millions)

: Operating expenses excl. marketing expenses (JPY millions) 13,982

11,845

Aim to improve

10,421

operational

9,628

23.1 %

22.2 %

22.8 %

efficiency by

21.6 % 21.2%

further business

3,940

expansion

in mid-term

2,225

2,315

2,699

3,023

834

2016

'17

'18

'19

fiscal year)

'20/1Q

1. Operating expenses ratio is calculated by dividing operating expenses excluding marketing expenses by insurance premium.

7

Profit Structure under

Current Statutory Accounting

  • Time lag is caused between the recognition of costs and revenue as marketing expenses is recognized at the time of acquisition, and revenue is collected gradually over a long period.

Insurance policy profit structure

Total profit/loss

Revenue collected

Accounting

over long period

profit/loss

Initial fiscal

Year 2

Year 3

Year 4

Year X

year

Revenue

Premiums

Expense

Marketing

Heavy initial cost

expenses

: Premiums

: Operating expenses1 excluding

marketing expenses

: Marketing expenses

1. Costs for policy management, payment of insurance claims and benefit claims, etc.

8

Adjusted Profit

  • Steadily recorded adjusted profit generated from policies-in-force

The method for calculating adjusted profit

Adjusted profit=ⅰ) Ordinary profitloss)1+ⅱ) Marketing expenses

-ⅲ) Impact of modified co-insurance

±) Adjustment based on standard

policy reserves2

JPY millions / fiscal year

2016

2017

2018

2019

2020/1Q

ⅰ) Ordinary profitloss)

88

(197)

(1,719)

(2,382)

(647)

ⅱ) Marketing expenses

1,822

2,627

4,216

6,146

1,506

) Modified co-insurance

-

-

-

(1,526)

(212)

) Adjustment

543

319

347

546

208

Adjusted profit

2,454

2,748

2,844

2,784

854

1.

The ordinary profit (loss) before amortization of deferred assets under Article 113 of the Insurance Business Act

2.

The amount of the adjustment to the policy reserve provision is the adjustment calculated by excluding the provision for contingency reserves and adjusting for the switch

9

in method for calculating the provision from the Zillmer method to provision based on the standard policy reserves.

Structure of Embedded Value

EV

Adjusted

Value of in-force

net worth

business

(Net assets at end of period

+ adjustments)

Profit/loss for the

current fiscal year is reflected in end-of-period net assets

RevenueRevenue

Expense

Expense

Profit/loss for

Unrealized future profits/losses on policies-in-force

current fiscal year

at the end of current fiscal year

10

EEVEuropean Embedded Value

  • Characteristics of Lifenet's EEV are as follows:

Strong growth

  • Maintaining increase in EEV since listing in March 2012
  • Steadily growing even in a low interest rate environment

Resilience to interest rate changes

  • Limited sensitivity to interest rate and stock fluctuations

11

Strong EEV1 Growth

  • EEV and value of in-force business have been

growing at CAGR of 19%2 respectively

(JPY millions)

Value of in-force business Adjusted net worth

and 36%, 75,921

73,431

60,878 63,879

18,547

5,122

13,425

12,553

12,042

2012/03 '13/03 '14/03 '15/03 '16/03 '17/03 '18/03 '19/03 '20/03 '20/06

(YY/MM)

1.

Lifenet's EEV is calculated following the EEV Principles and Guidance and in terms of allowance for risk, MCEV Principles (The European Insurance CFO Forum Market

Consistent Embedded Value Principles©) is referred. From fiscal 2016 onward, a predetermined ultimate forward rate has been used to extrapolate the level of ultra-

long-term interest rates past the last liquid data point. This method of extrapolation has also been used to restate EEV as of March 31, 2016. EEV as of June 30, 2020

is calculated applying the same operating assumptions as those used for March 31, 2020, and is not reviewed by third-party specialists.

12

2.

The calculation includes 3,040 million yen in proceeds from a third-party allotment in May 2015.

Changing Factors of EEV1

  • Value of new business contributed to EEV growth because of strong new business performance

(JPY millions)

Adjusted

75,921

incremental EV

Assumption

Economic

variances

Operating

changes

and assumption

experience

31

changes

Expected

variances

335

existing

251

Value of

business

contribution

new business

329

1,542

73,431

total 2,122million yen

'20/03

'20/06

1. Lifenet's EEV is calculated following the EEV Principles and Guidance and in terms of allowance for risk, MCEV Principles (The European Insurance CFO Forum

Market Consistent Embedded Value Principles©) is referred. EEV as of June 30, 2020 is calculated applying the same operating assumptions as those used for March 31, 2020, and is not reviewed by third-party specialists.

(YY/MM)

13

EV Resilience to Financial Changes

  • Limited sensitivity to interest rates and stock prices

June 2020

Reference: March 2020 End1

End

Lifenet

Lifenet

Company A

Company B

Company C

11%

7%

7%

1.4%

1.5%

-1.7%

-0.6%

-1.7%

-0.6%

-4%

-5%

-7%

0.5% interest rate increase

-10%

-9%

0.5% interest rate decrease

10% decrease in equity and

-17%

real estate value and other

1. Prepared by Lifenet based on disclosed information of domestic public life insurance companies.

14

Financial Condition

'20/03

(JPY millions) (YY/MM)

'20/06

Total assets

41,144

42,298

Cash and deposits

1,377

1,566

Monetary claims bought

299

Money held in trust

3,539

3,710

Solvency margin

Securities

32,058

32,846

ratio remained

Government bonds

8,065

8,034

above 2,000%

Municipal bonds

1,391

1,386

Corporate bonds

18,119

18,684

Stocks

313

388

Raised capital in

Foreign securities

0

0

Other securities1

4,167

4,352

July to accelerate

Total liabilities

31,744

33,346

growth

Policy reserves and other

30,328

31,822

Total net assets

9,400

8,951

momentum

Solvency margin ratio2

2,117

2,093

1. Investment trust including foreign bonds and others.

Modified duration (year)

11.3

11.4

2. The solvency margin ratio is a key benchmark for industry

regulators. It measures a life insurance company's ability to

pay out claims when unforeseen events occur.

15

Notable Achievements

  • Launched the second white label business with Seven & i group
  • Ranked number one in major price comparison websites1,2

Term Life

Whole-life

Long-term

Cancer

Medical

Disability

1.

The most popular insurance products in each category from January through December 2019, receiving the highest number of applications of Kakaku.com

Insurance, the sales agent company of insurance products

16

2.

The Most Chosen Insurance Ranking 2020 of HOKEN ICHIBA is based on compiled date from the number of application from January through December 2019.

Overseas Public Offering and

Secondary Offering

  • Successfully executed full marketing while working remotely under COVID-19

Overview

  • Offered shares totaled 13.8 billion yen
  • Raised new capital of 9 billion yen from overseas market, mainly Asia and Europe
  • All the proceeds to be used for future business growth
  • Low discount rate of 4.02% due to excess demand
  • Aim for improvement market liquidity by secondary offering

17

Objectives for Offering

  • Aim for Growth and Transformation

Growth

  • Confirm the positioning as a financial institution with strong growth potential
  • Accelerate growth of in-force business

Transformation

  • Realize the mid-term vision of

"Internet Service Company of Life Insurance"

  • Improve the market liquidity
  • Multiple expansion in stock valuation

18

Ref. Life Time Value and Customer Acquisition Cost

Key Metrics for a SaaS Company and Lifenet

ARR per Contract

(Annual Recurring Revenue)

Life Time

(Term of Contract)

Gross Margin Rate

LTV

(Life Time Value)

CAC

(Customer Acquisition Cost)

Commonly Used SaaS Glossary

  • The value of the contracted recurring revenue components of the term subscriptions normalized to a one-year period
  • Contract period: from date entered into contract until the contract is cancelled
  • Calculated by reciprocal of churn rate
  • Percentage of revenue left over after the cost of servicing that revenue is taken into account
  • Accumulated profit per client during the contract period
  • Revenue from new client * total revenue profitability
    (%) * contract period
  • Marketing and sales expenses incurred in bringing 1 client

FY2019

FY2020/1Q

Annualized Premiums per

Annualized Premiums per

Policy-in-force

Policy-in-force

JPY 42,486

JPY 42,452

×

×

Average Policy Term

Average Policy Term

14.3 years1

18.2 years1

×

×

45%2

44%2

Annualized Premiums

Annualized Premiums

per Policy * Life Time *

per Policy * Life Time *

Gross Margin Rate)

Gross Margin Rate)

JPY 273,397

JPY 339,956

Marketing Expenses per

Marketing Expenses per

New Policy

New Policy

JPY 75,9703

JPY 53,5413

1. 1 / Churn rate. Churn rate represents the percentage of users who cancelled out their insurance policies.

2.

(Insurance premiums - Insurance claims and benefits - Provision for policy reserves and others) / Insurance premiums.

19

3.

Marketing expenses / Number of new business.

Business Forecast FY2020

  • Aim for record high of new business performance under COVID-19environment

(JPY millions)

FY2020 Forecast

(Reference)

FY2019 Results

Of which: impact

Of which: impact

of modified

of modified

co-insurance

co-insurance

Ordinary income

20,000

2,700

16,850

2,034

Ordinary profit

(3,200)

650

(2,382)

1,526

(loss)

Net income

(3,200)

650

(2,400)

1,526

(loss)

(Reference)

4,000

3,425

Annualized premium

of new business1

1. Annualized premium is the amount of money equivalent to what is to be paid to have the insurance coverage for one year. All payments for Lifenet products are in

20

monthly installments; we calculate annualized premium as multiplying the monthly premium by 12 months.

Management Policy

mentManagegoal- PriorityareasVision Mission

Help our customers embrace life more fully by offering comprehensible, cost-competitive and convenient products and services

Be the leading company driving the growth of the online life insurance market

  • Innovation of customer experience

Enhancing and evolving the quality of all services with digital technology

  • Enhancement of promotion capabilities

Generating massive customer traffic by active promotion and expansion of agent sales and white label business

Aim to achieve EEV (European Embedded Value) of 100 billion yen by business growth in a mid-term

21

LIFENET Manifesto

Comprehensible, Cost-Competitive, Convenient

    1. Our Guiding Principles
  1. Creating the life insurance of the future without losing sight of its original premise: "an ounce of prevention is worth more than a pound of cure."
  2. Listening to what our customers are saying. Recognizing their needs and acting accordingly. Allowing our actions to be borne out of their voices and needs.
  3. Delivering the caliber of products and services that we would feel confident recommending to our own friends and families.
  4. Being a "straight-shooter". Committing to transparency. Communicating openly about our management team, our products, and our employees.
  5. Embracing diversity and dialogue to keep us abreast of changing needs and preferences. Delivering peace of mind that we'll be around in 100 years.
  6. Acting in good faith means always taking the high road when it comes to compliance and ethics.
  1. Making Life Insurance Accessible Again - Affordable
  1. Giving the customer what he/she needs. No more, no less at a fair price.
  2. Staying vigilant as to how we can provide our products more cost-efficiently.
  3. Always putting ourselves in our customers' shoes in thinking about how to minimize their premiums.
  1. Making Life Insurance Accessible Again - Headache-free
  1. Helping the customers help themselves. By making our materials easy to understand, customers can determine which coverage is truly the best fit.
  2. Turning "clauses" in the insurance contract into succinct points that your grandmother could grasp.
  3. Making all touch points headache-free. Beyond the application process, ensuring the claims and billing processes are also easy to understand.

IV. Making Life Insurance Accessible Again - Convenient

  1. Thinking about our customers' convenience from every angle and every touch point along the way.
  2. Forming alliances with like-minded partners who can add value above and beyond our products and services to our customers.
  3. Providing health and wellness tips beyond the framework of life insurance to create value in our policyholders' lives.
  4. Creating a precedent for future generations as to what life insurance is (and should be) all about.

We wish to be a company that helps our customers embrace life more fully.

In order to live out that vision, we continue to challenge ourselves.

22

All information on this document that is not historical fact constitutes forward-looking information and is based on assumptions and forecasts available to the company at the time of preparation. The company cannot guarantee the accuracy of these assumptions and forecasts. Earnings projections and other information on this may differ materially from actual performance due to various risks and uncertainties.

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

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

Subscribe to our "IR email service" to receive news releases and website updates via email.

Appendix

Impact of COVID-19

for 1Q of Fiscal 2020

  • New business performance achieved record high on a quarterly basis
  • Surrender and lapse ratio improved
  • No significant impact on payment of insurance claim
  • Various special measures based on customer-orientedbusiness

25

Number of New Business (Quarter)

  • Recorded historical high

:Number of new business

28,136

1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q 3Q4Q1Q2Q3Q4Q1Q2Q 3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q 3Q4Q1Q2Q3Q4Q1Q2Q3Q 4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019FY2020 26

Condensed Statements of Operation

/ Fundamental Profit

Condensed statements of operation

Fundamen talprofit

Change

(JPY millions)

FY2019/1Q

FY2020/1Q

Note

Insurance premiums and other

3,774

4,633

859

Increased due to growth in in-force policies business and

utilization of modified co-insurance

Other

121

92

(28)

Ordinary income

3,895

4,726

831

Includes 558M increase for utilization of modified co-insurance

Insurance claims and

772

1,236

463

Increased due to growth in in-force policies. Percentage of

insurance claims and benefit claims to insurance premiums is

other

18.1%.

Insurance claims

386

447

61

Increased from 27 cases in 1Q of FY19 to 38 in 1Q of FY20.

Benefit claims

227

267

40

Increased from 1,960 cases in 1Q of FY19 to 2,201 in 1Q of

FY20.

Provision for policy

1,015

1,497

481

Increased by transferring to standard policy reserves.

Percentage of provision for policy reserves (1,497 million yen) to

reserves and other

insurance premiums is 38.0%.

2,341

Operating expenses

2,199

141

Marketing expenses

1,502

1,506

3

Customer service

211

242

31

System and other

486

592

106

Other

228

299

71

Ordinary expenses

4,216

5,374

1,157

Ordinary profit (loss)

(321)

(647)

(326)

Includes profit of 212M for utilization of modified co-insurance.

Extraordinary losses and

4

4

0

income taxes

Net income (loss)

(325)

(652)

(326)

Includes profit of 212M for utilization of modified co-insurance.

Mortality margin

757

877

119

Expense margin (loss)

(1,180)

(1,424)

(243)

Includes 263M expense margin for utilization of modified co-

(15)

insurance.

Interest margin (loss)

(5)

(10)

Fundamental profit

(428)

(562)

(134)

27

EV Sensitivity Analysis1

Impacts of changes in assumptions (sensitivities)

(JPY millions)

Change in EEV as of

Change in

June 30, 2020

VoNB

EEV and new business value as of June 30, 2020

75,921

1,542

Sensitivity 1a: 1.0% increase in risk-free rate

(2,612)

9

Sensitivity 1b: 1.0% decrease in risk-free rate

1,969

(97)

Sensitivity 1c: 0.5% increase in risk-free rate

(1,253)

13

Sensitivity 1d: 0.5% decrease in risk-free rate

1,096

(34)

Sensitivity 1e: Interest rates based on JGB yields

962

73

Sensitivity 2: 10% decrease in equity and real estate value and other

(442)

Sensitivity 3: 10% decrease in operating expenses

3,301

236

Sensitivity 4: 10% decrease in lapse rate

145

12

Sensitivity 5: 5% decrease in claim incidence rates for life business

3,963

183

Sensitivity 6: Change the required capital to the statutory minimum

62

3

1. For each sensitivity, only one specific assumption is changed and other assumptions remain unchanged. It should be noted that the effect of the change of more than one assumption at a time is likely to be different from the sum of sensitivities carried out separately. As Japanese policy reserves are calculated in accordance with the IBR, the sensitivities carried out do not affect the reserves at the valuation date. The sensitivity on the value of new business excludes the impact on the adjusted net worth. EEV as of June 30, 2020 is calculated applying the same operating assumptions as those used for March 31, 2020, and is not reviewed by third- 28 party specialists.

Three Surplus Factors of

Fundamental Profit

1Q of FY2020

(JPY mn)

Statements of operations

Profit analysis

income

Insurance premiums and other 4,633

Premiums income 3,940

Net premiums

Expense loading

Reinsurance income 693

Reinsurance

Other reinsurance

Ordinary

income

income

Investment income 73

Interest and

Gains on sales

dividends

of securities

Other ordinary income 19

Other ordinary

income

Insurance claims and other 1,236

Insurance claims and benefits

Insurance claims

expenses

714

and benefits

policy reserves

interest

reserves

reserves and others 1,497

reserves

Reinsurance commissions

Reinsurance

Other reinsurance

521

commissions

commissions

Provision for policy

Change in policy

Change in

Projected

Provision for

contingency

Ordinary

Investment expenses 0

expenses

Interest

Losses on sales

expenses

of securities

Operating expenses 2,341

Operating

Other ordinary expenses

Other ordinary

299

expenses

Capital gains

Other onetime

Ordinary profit (loss) (647)

(losses)

gains (losses)

4

(89)

Extraordinary profit (loss)

Extraordinary profit (loss)

(3)

Mortality

Expense

Interest

(3)

Income taxes 0

margin (loss)

margin (loss)

margin (loss)

Income taxes 0

877

(1,424)

(15)

Net profit (loss) (652)

Net profit (loss) (652)

1. Some items with minimal amounts have been omitted.

29

Solvency Margin Ratio Calculation

As of June 30, 2020

(R1 + R 8 )2 + (R 2 + R 3 + R 7 )2 + R 4 / 2 (JPY mn)

=

Solvency margin ratio

Total amount of solvency margin

÷

Total amount of risk/2

2,093.9%

< the denominator>

19,367

1,849/2

Cash and deposits

Other liabilities

1,566

1,190

Reserves for outstanding claims

634

Money held in trust

Policy reserves

3,710

31,187

Contingency reserves 1,812

Excess over the full-

Zillmerized reserve 8,368

Securities

Price fluctuation reserves 59

2461

Deferred tax liabilities on

32,846

available-for-sale securities

Valuation difference on

securities available-for-sale

6341

Tangible fixed assets

Capital stock and

other assets

88

8,245

Intangible fixed assets

764

Other assets

Net assets

3,320

8,951

Add liabilities with strong capital characteristics such as price fluctuation reserves and contingency reserves

Insurance risk R1 1,137

Risk of change in mortality rate (calculated based on value of policies in force)

Medical insurance risk R8 338

Risk of change in medical incidence rate (hospital admission rate , etc.)

Assumed interest rate risk R2 3

Risk that the actual investment return will fall below the expected return used as a basis for calculating policy reserves

[Minimum guarantee risk] R7

Risk related to products, such as variable annuities with minimum guarantees

Asset management risk R3 984

[Credit risk] Risk that asset values decline due to deterioration in financial condition of creditees

[Price fluctuation risk]Risk of incurring losses due to decline in market value of stocks and bonds, etc.

Business management risk R4 73

3% of the total of the amounts of the other 5 risks (in the

Company's case)

1.

90% of the valuation difference on available-for-sale securities and deferred gains or losses on hedges (pre-tax) (if negative, 100%)

30

2.

Items that do not apply to the Company or for which the amount is minimal have been omitted, except for certain bracketed items.

Adjusted Incremental EV

  • Adjusted Incremental EV accurately indicates our business growth during a certain period within increase in EEV

Adjusted incremental EV

Defined as constitution of components below:

  • New business value in the fiscal year
  • Expected existing business contribution
  • Operating experience variances

31

Adjusted Profit

Significance of Adjusted profit disclosure

  • As accrual timing of cost and revenue do not match, statutory accounting does not necessarily provide an accurate picture of business profit for a given fiscal year.
  • We disclose adjusted profit as an indicator of profit generated by policies-in-force. It is calculated by excluding marketing expenses for periods other than the period in which income was generated from ordinary profit (loss) and adjusting for the benefit from modified co-insurance and the level of policy reserves.

Adjusted profit

32

Explanation of Adjusted profit

  • Adjustments to provision for policy reserves based on standard policy reserves

Calculation of adjusted profit

) Impact of

)

Adjustment

) Marketing

modified co-

insurance

based on

expenses

standard policy Adjusted

reserves

profit

) Ordinary

profitloss)

Difference between methods of calculating provision for policy reserves

We are currently in the transitional period and will transition all business to standard policy reserves by the end of Fiscal 2022.

Method of calculating the ") Adjustment based on standard policy reserves"

e.g. 1Q for fiscal 2020 (JPY millions)

Adjustment to provision for

Provision for policy

Increase in standard

policy reserves1

reserves

policy reserves2

208

1,497

1,288

  1. The amount of the adjustment to switch to provisioning based on standard policy reserves is calculated by excluding the provision for contingency reserves and adjusting for the switch in method for calculating the provision from the Zillmer method to provision based on the standard policy reserves. Please note that the provision for contingency reserves is included in the provision for policy reserves, but is not included in the increase in standard policy reserves.
  2. The increase in standard policy reserves is the amount of the increase (decrease) in the standard policy reserve balance for the current fiscal year from the balance in the previous fiscal year. The standard policy reserves is the amount calculated by excluding the provision for contingency reserves from actually

provisioned policy reserves and adding the difference from the provision based on the standard policy reserves. The difference was 837 million yen as of June

33

30, 2020.

Modified Co-Insurance

  • Ease pressure of new business costs on P&L
  • Alleviate decrease in capital during growth

Illustration image of change in

profit/loss structure by reinsurance

Revenue Costs Effects of reinsurance

Reinsurance

Without

Ease pressure of new

With Reinsurance

business costs

Year 1 2

3

4

… Year X

Illustration image of impact of

reinsurance on net assets

11,773 million yen

With

Reinsurance

Without

Reinsurance

End of Mar. 2019

Note: Illustration of P&L structure of reinsuring new business of

single fiscal year, where illustration of impact on net assets of

34

reinsuring new business for multiple years.

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Lifenet Insurance Co. published this content on 11 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2020 06:33:01 UTC