Dai ichi Life : Presentation(601KB

May 15, 2024

Financial Results for the Fiscal Year Ended March 31, 2024

The Dai-ichi Life Insurance Company, Limited (the ''Company''; President: Toshiaki Sumino) announces its financial results for the fiscal year ended March 31, 2024.

[Contents]

Financial Summary for the Fiscal Year Ended March 31, 2024

1.	Business Highlights	……… P.1
2.	Policies in Force as of March 31, 2024 by Benefit	……… P.2
3.	Investment of General Account Assets	……… P.3
4.	Unaudited Balance Sheet	……… P.12
5.	Unaudited Statement of Earnings	……… P.13
6.	Unaudited Statement of Changes in Net Assets	……… P.14
7.	Breakdown of Ordinary Profit (Fundamental Profit)	……… P.36
8.	Disclosed Claims Based on Categories of Obligors	……… P.38
9.	Solvency Margin Ratio	……… P.39
10.	Status of Separate Account for the Fiscal Year Ended March 31, 2024	……… P.40
11.	Consolidated Financial Summary	……… P.44

Attached: Supplementary Materials for the Fiscal Year Ended March 31, 2024.

Please note that this is an unofficial translation of the original disclosure in Japanese.

The Dai-ichi Life Insurance Company, Limited

1. Business Highlights

(1) Annualized Net Premium

Policies in Force				(billions of yen)
		As of March 31, 2023	As of March 31, 2024
			% of March 31, 2022 total		% of March 31, 2023 total
Individual insurance	1,464.5	96.7	1,408.6	96.2
Individual annuities	533.2	99.0	540.8	101.4
Total	1,997.7	97.3	1,949.4	97.6
	Medical and survival benefits	701.9	99.0	690.4	98.4
New Policies				(billions of yen)
		As of March 31, 2023	As of March 31, 2024
			% of March 31, 2022 total		% of March 31, 2023 total
Individual insurance	39.5	62.0	37.1	93.8
Individual annuities	6.6	61.9	20.4	307.1
Total	46.2	62.0	57.5	124.5
	Medical and survival benefits	29.5	61.3	26.8	90.9

Note: 1. Annualized net premium is calculated by using multipliers for various premium payment terms to the premium per payment. In single premium contracts, the amount is calculated by dividing the premium by the duration of the policy .

1. 1. Annualized net premium for medical and survival benefits includes (a) premium related to medical benefits such as hospitalization and surgery benefits, (b) premium related to survival benefits such as specific illness and nursing benefits, and (c) premium related to premium waiver benefits, in which disability cause is excluded but causes such as specific illness and nursing care are included.
   2. New policies include net increase by conversion.
2. Sum Insured of Policies in Force and New Policies

Policies in Force

			As of March 31, 2023
	Number of policies			Amount
	(thousands)		% of M arch 31, 2022		(billions of yen)	% of M arch 31, 2022
		total		total
Individual insurance	22,270		102.9		73,206.7	94.3
Individual annuities	2,068		98.3		10,521.0	97.1
Individual insurance and annuities	24,339		102.5		83,727.8	94.6
Group insurance	-		-		49,341.8	98.6
Group annuities	-		-		6,066.9	98.3
			As of March 31, 2024
	Number of policies			Amount
	(thousands)		% of M arch 31, 2023		(billions of yen)	% of M arch 31, 2023
		total		total
Individual insurance	22,424		100.7		69,509.2	94.9
Individual annuities	2,122		102.6		10,530.5	100.1
Individual insurance and annuities	24,547		100.9		80,039.7	95.6
Group insurance	-		-		48,436.9	98.2
Group annuities	-		-		6,171.9	101.7

Note: 1. Policy amount in force of individual annuities is equal to (a) the funds to be held at the time annuity payments are to commence for an annuity for which payment has not yet commenced, and (b) the amount of policy reserve for an annuity for which payments have commenced.

1. Policy amount in force of group annuities is equal to the amount of outstanding corresponding policy reserve.
2. For products covered by multiple insurance agreements after April 2018, the number of policies for each product is shown as one.

New Policies

				Year ended March 31, 2023
	Number of policies		Amount
	(thousands)		% of M arch 31, 2022	(billions of yen)	New Business	Net increase by	% of M arch 31, 2022
		total	conversion	total
Individual insurance	2,620		68.2	1,050.3	1,372.0	(321.6)	-
Individual annuities	47		56.3	166.9	169.0	(2.1)	59.6
Individual insurance and annuities	2,668		67.9	1,217.2	1,541.0	(323.7)	5,245.7
Group insurance	-		-	171.1	171.1	-	83.8
Group annuities	-		-	2.0	2.0	-	3,995.1
				Year ended March 31, 2024
	Number of policies		Amount
	(thousands)		% of M arch 31, 2023	(billions of yen)	New Business	Net increase by	% of M arch 31, 2023
		total	conversion	total
Individual insurance	2,046		78.1	1,657.3	1,471.0	186.2	157.8
Individual annuities	149		311.7	550.9	553.9	(2.9)	330.0
Individual insurance and annuities	2,196		82.3	2,208.3	2,025.0	183.3	181.4
Group insurance	-		-	271.5	271.5	-	158.7
Group annuities	-		-	0.0	0.0	-	0.2

Note: 1. Number of new policies is the sum of new business and policies after conversion.

1. Amount of new policies for individual annuities, both new business and net increase by conversion, is equal to the funds to be held at the time annuity payments are to commence.
2. Amount of new policies for group annuities is equal to the initial premium payment.
3. For products covered by multiple insurance agreements after April 2018, the number of policies for each product is shown as one.
4. • 1 -

The Dai-ichi Life Insurance Company, Limited

2. Policies in Force as of March 31, 2024 by Benefit

		Individual insurance (I)	Individual annuities (II)	Group insurance (III)	Total (I+II+III)
		Number	Amount	Number	Amount	Number	Amount	Number	Amount
		(thousands)	(billions of yen)	(thousands)	(billions of yen)	(thousands)	(billions of yen)	(thousands)	(billions of yen)
Death benefits
	general	20,538	58,802.2	－	－	24,179	48,432.5	44,718	107,234.7
	accidental	[ 1,378]	[ 5,926.9]	[ 882]	[ 438.2]	[ 2,563]	[ 1,165.9]	[ 4,824]	[ 7,531.0]
	others	－	－	－	－	[ 34]	[ 38.8]	[ 34]	[ 38.8]
Survival benefits	1,885	10,707.0	2,122	10,530.5	5	4.3	4,013	21,241.8
Hospitalization benefits
	accidental	[ 7,298]	[ 41.9]	[ 31]	[ 0.1]	[ 1,258]	[ 0.6]	[ 8,588]	[ 42.7]
	illness	[ 7,290]	[ 41.8]	[ 31]	[ 0.1]	[ 0]	[ 0.0]	[ 7,322]	[ 42.0]
	others	[ 2,618]	[ 13.6]	[ 24]	[ 0.1]	[ 68]	[ 0.3]	[ 2,711]	[ 14.0]
Injury benefits	[ 4,671]	－	[ 43]	－	[ 2,449]	－	[ 7,164]	－
Surgery benefits	[ 8,130]	－	[ 31]	－	[ 0]	－	[ 8,162]	－
		Group annuities (IV)	Financial insurance (V)	Financial annuities (VI)	Total (IV+V+VI)
		Number	Amount	Number	Amount	Number	Amount	Number	Amount
		(thousands)	(billions of yen)	(thousands)	(billions of yen)	(thousands)	(billions of yen)	(thousands)	(billions of yen)
Survival benefits	7,406	6,171.9	49	228.9	28	61.8	7,484	6,462.7

	Medical care insurance
	Number	Amount
	(thousands)	(billions of yen)
Hospitalization benefits	456	1.4

	Group disability
	Number	Amount
	(thousands)	(billions of yen)
Disability benefits	11	0.7

Note:

1. Figures in [ ] show numbers and amounts of additional benefits and of benefits to be paid from riders.
2. Numbers of group insurance, group annuities, financial insurance, financial annuities, medical care insurance and group disability show the numbers of insureds.
3. Amounts in 'Survival benefits' show the sum of (a) the funds to be held at the time annuity payments are to commence for an annuity for which payment has not yet commenced, and (b) the amount of policy reserve for an annuity for which payments have commenced for individual annuities, group insurance (annuity riders) and financial annuities. The amounts in 'Survival benefits' show the amount of outstanding corresponding policy reserve for group annuities, financial insurance and others.
4. Amounts in 'Hospitalization benefits' show the amount of hospitalization benefit to be paid per day.
5. Amount in 'Hospitalization benefits' for medical care insurance shows the daily amount to be paid for hospitalization from illness.
6. Amount in group disability insurance shows the amount of disability benefits paid per month.
7. For others (such as underwritten reinsurance, etc.) the number of insureds and amount of policies were 885 thousand and 6,658.8 billion yen, respectively.

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The Dai-ichi Life Insurance Company, Limited

3.Investment of General Account Assets in Fiscal 2023

1. Investment Status of Assets in Fiscal 2023
   ① Operational environment
   In FY2023, the Japanese economy saw a boost from increased inbound demand as the aftermath of the COVID-19 pandemic eased. However, personal consumption experienced a downturn due to inflationary pressures, resulting in a recovery that was only moderate in nature. Overseas economies, while slowing down due to continued monetary tightening in various regions, found the U.S. economy to be resilient, thanks to its solid employment and income conditions. Although inflation rates hinted at reaching their peak in several countries, they persisted in gradually easing due to enduring inflationary forces.
   Amid these economic conditions, the operational environment was as follows.

The yield on 10-year JGBs rose to the 0.7% range, as a result of revisions made by the Bank of Japan (BOJ) to its extensive monetary easing policies such as yield curve control(YCC) and negative interest rate measures.

Yield on ten-year government bonds: April 1, 2023	0.320%
March 31, 2024	0.725%

The Nikkei 225 Stock Average experienced a buoyant ascent. Supported not only by accommodative monetary policies but also by improved corporate performance due to a weaker yen, inflows into Japanese stocks from overseas investors, and the anticipation surrounding the new NISA (Nippon Individual Savings Account) program, stock prices surged significantly.

Nikkei 225 Stock Average:	April 1, 2023	28,041
	March 31, 2024	40,369
TOPIX:	April 1, 2023	2,003
	March 31, 2024	2,768

The JPY/USD weakened as the U.S. Federal Reserve (FRB) kept its monetary policy tight on the back of favorable employment environment and persistently high inflation in the US, widening the gap between domestic and foreign interest rates.

The JPY/EUR exchange rate depreciated against the yen as the European Central Bank (ECB) continued its tight monetary policy against the backdrop of rising inflation rates primarily driven by increases in resource and energy prices.

JPY/USD:	April 1, 2023	¥133.53
	March 31, 2024	¥151.41
JPY/EUR:	April 1, 2023	¥145.72
	March 31, 2024	¥163.24

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The Dai-ichi Life Insurance Company, Limited

• Investment Performance Overview
  In FY2023, the Company maintained its investment centered on fixed income assets, such as government and corporate bonds, based on our risk-taking policy and medium-tolong-term asset management policy. In particular, the Company reduced stocks and increased the amount of policy reserve-matching bonds, with a focus on super-long-term government bonds, to reduce market risk including interest rate risk and equity risk with the view to secure financial soundness against fluctuations in financial markets and to improve capital efficiency.
  With regard to risk assets such as foreign securities, the Company flexibly and swiftly shift its fund asset allocation taking into account market development. Furthermore, it promoted investments in infrastructure sector, alternative assets and real assets to improve its portfolio profitability and to diversify its portfolio.

Assets	Operational status
Bonds and	Increase
debentures	To reduce interest rate risk, the Company increased investment in policy-reserve-
	matching bonds, mainly super-long-term bonds. With regard to credit assets such as
	corporate bonds and securitized products, the overall balance increased while
	strengthening securities selection and diversification.
Loans	Increase
receivable	The balance increased while the Company executed loans with an aim to gain
	sufficient excess spreads considering credit spread trends in the corporate bond
	market.
Domestic	Increase
stocks	The balance increased due to the rise in market value despite the sale of stocks to
	promote the reduction of market risk associated with equity-holdings. On the other
	hand, the Company promoted investment in sectors and companies with medium-to
	long-term growth potential based on the research by analysts, in order to improve the
	profitability of portfolio.
Foreign bonds	Decrease
and debentures	The balance decreased due to the sale considering interest rates and foreign
	exchange rates conditions in Japan and overseas. The company strived to improve
	portfolio efficiency through diversification of bond sectors and currencies.
Foreign Stocks	Increase
	The balance increased as a result of flexible asset allocation taking into account
	market trends, coupled with the rise in market value. In addition, the Company has
	strengthened the diversification of investment managers, styles and regions by using
	both in-house and external investment managers.
Real estate	Decrease
	The balance decreased due to depreciation and other factors. On the other hand, the
	Company, while investing in high-quality offices, promoted new investment in
	properties such as housing, commerce, and logistics for diversification, and
	replacement of properties considering factors including occupancy rate, regional
	characteristics, and age, to improve the profitability and soundness of the portfolio.

(NOTE)Changes in each asset are based on the balance sheet value.

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The Dai-ichi Life Insurance Company, Limited

Investment income has been decreased by JPY 228.2 billion from the previous fiscal year to JPY 1,151 billion, as the decrease in gains on sales of securities and in interest dividends, and other income. Investment expenses decreased by JPY 130.7 billion from the previous fiscal year to JPY 491.7 billion, as the decrease in foreign exchange losses and losses on sales of securities, despite an increase in epenses for dervitive financial instruments.

As a result, net investment income in the general account decreased by JPY 97.5 billion from the previous year to JPY

659.2 billion.

• Investment Outlook in Fiscal 2024

In fiscal year 2024, the Japanese economy is expected to experience low growth in the first half of the year, due to the weak recovery in personal consumption, but it is anticipated to gradually rebound in the latter half of the year, primarily driven by domestic demand, supported by an increase in real wages and easing downward pressure from price hikes. We expect overseas economies to slow down in the first half of the fiscal year due to high inflation and monetary tightening, but to recover in the second half of the year as inflation gradually settles and policy rates are lowered. We believe it is necessary to pay attention to the increasing volatility of financial markets due to political events and geopolitical risks in various countries.

Domestic interest rates are forecasted to remain on an upward trend for the time being amid the BOJ is expected to

raise its policy rate. However, it is necessary to pay attention to the possibility that volatility may increase due to factors such as significant economic downturns and geopolitical risks caused by the continued global monetary tightening prompted by persistent inflationary pressures.

While it is expected that there will be periods when domestic stocks decline due to the uncertainty of the US presidential election, we expect the market to remain firm thanks to strong corporate earnings growth, companies' efforts towards improving capital efficiency, and ongoing inflows into Japanese equities by foreign investors. On the other hand, we believe that it is necessary to keep in mind the possibility that volatility may increase due to changes in monetary policy in each country, sharp rises in interest rates, political events in each country and geopolitical risks.

< Currency>

We expect JPY/USD to be influenced by the monetary policy and economic outlook in the US and Japan. We expect that interest rate cuts in the US and interest rate hikes by the BOJ will likely weaken the dollar and strengthen the yen, and that the JPY/USD will be restrained to the upside. It is necessary to be alert to the possibility of increased volatility due to geopolitical risks and other factors.

Although JPY/EUR is expected to be influenced by developments in monetary policy in Japan and Europe, we believe that it is necessary to pay attention to the possibility that volatility may increase due to changes in the political situation in Europe and other factors.

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The Dai-ichi Life Insurance Company, Limited

• Investment Policy for Fiscal 2024

The Company will continue to invest in portfolios centered on fixed income assets such as public and corporate bonds based on our risk-taking policy and medium-tolong-term investment policy. In addition, the Company will continue risk reduction efforts to ensure financial soundness against financial market fluctuations and improve capital efficiency. The Company will also actively invest in selective credit investments, investments and loans in the infrastructure sector, alternative assets and real assets to ensure profitability and strengthen the diversification of portfolio.

Assets	Investment policy
Bonds and	Increase
debentures	Stable management as a core asset of ALM will be maintained. Our policy is
	to reduce interest rate risk by adding policy reserve-matching bonds and
	implementing asset duration adjustments. In addition, our policy is to actively
	engage in infrastructure-related and other investments from the perspective of
	improving investment efficiency within fixed income assets.
Loans	Decrease
receivable	While we will continue to proactively respond to capital needs in growth areas,
	the balance will be expected to decrease due to the impact of redemptions and
	other factors. In addition, our policy is to provide new loans by setting
	appropriate lending rates, while taking into account the analysis of borrowers'
	credit risks and credit spread trends in the corporate bond market.
Domestic stocks	Decrease
	The Company's policy is to decrease the balance through the sale with an aim
	to reduce market risk associated with equity holdings. However, the Company's
	policy is to flexibly control the balance depending on the level of stock prices,
	while at the same time implementing reallocation to industries and names based
	on growth potential and venture investments.
Foreign bonds	Unhedged：Depending on interest rates and exchange rates
and debentures	Hedged：Decrease
	Unhedged bonds will be flexibly allocated in accordance with risk tolerance
	and exchange rate trends.
	Hedged bonds will be reduced in view of interest rate gap between overseas
	and Japan.
Foreign Stocks	Depending on the foreign stock price
	While we plan to accumulate alternative assets with the aim of securing
	profitability and diversifying the risk of its portfolio, the Company's policy is to
	flexibly control the outstanding balance of foreign stocks exposure including
	alternative assets, depending on the level of stock prices. The Company strives
	to enhance and stabilize the profitability of its portfolio while diversifying
	investment styles and regions.
Real estate	Increase
	The Company's policy is to increase the balance through new acquisitions of
	properties. The Company will promote investment in new properties such as
	residence, commerce, and logistics for diversification, and replacement of
	properties based on occupancy rate, regional characteristics, age, and other
	factors, with an aim to improve the profitability and soundness of its portfolio.

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The Dai-ichi Life Insurance Company, Limited

(2) Investment Income (General account)

				(millions of yen)
		Year ended March 31, 2023	Year ended March 31, 2024
		Amount	%	Amount	%
Interest and dividends	804,834	58.4	720,085	62.6
	Interest from bank deposits	2,311	0.2	449	0.0
	Interest and dividends from securities	679,142	49.2	579,461	50.3
	Interest from loans	41,722	3.0	55,697	4.8
	Rental income	68,977	5.0	68,699	6.0
	Other interest and dividends	12,680	0.9	15,777	1.4
Gains on trading account securities	-	-	-	-
Gains on money held in trust	-	-	2,155	0.2
Gains on investments in trading securities	-	-	-	-
Gains on sale of securities	551,678	40.0	418,537	36.4
	Gains on sale of domestic bonds	172,410	12.5	39,356	3.4
	Gains on sale of domestic stocks	143,067	10.4	220,849	19.2
	Gains on sale of foreign securities	232,678	16.9	158,331	13.8
	Others	3,521	0.3	-	-
Gains on redemption of securities	18,763	1.4	8,227	0.7
Derivative transaction gains	-	-	-	-
Foreign exchange gains	-	-	-	-
Reversal of reserve for possible loan losses	-	-	-	-
Reversal of reserve for possible investment losses	-	-	46	0.0
Other investment income	3,993	0.3	2,013	0.2
Total	1,379,269	100.0	1,151,066	100.0

(3) Investment Expense (General account)

				(millions of yen)
		Year ended March 31, 2023	Year ended March 31, 2024
		Amount	%	Amount	%
Interest expenses	9,759	1.6	8,789	1.8
Losses on trading account securities	-	-	-	-
Losses on money held in trust	39	0.0	-	-
Losses on investments in trading securities	-	-	-	-
Losses on sale of securities	433,394	69.6	271,966	55.3
	Losses on sale of domestic bonds	21,635	3.5	50,232	10.2
	Losses on sale of domestic stocks	18,450	3.0	51,664	10.5
	Losses on sale of foreign securities	393,308	63.2	170,069	34.6
	Others	-	-	-	-
Losses on valuation of securities	3,731	0.6	3,204	0.7
	Losses on valuation of domestic bonds	-	-	-	-
	Losses on valuation of domestic stocks	2,696	0.4	2,417	0.5
	Losses on valuation of foreign securities	1,020	0.2	720	0.1
	Others	14	0.0	66	0.0
Losses on redemption of securities	5,629	0.9	3,625	0.7
Derivative transaction losses	16,971	2.7	99,156	20.2
Foreign exchange losses	82,111	13.2	25,625	5.2
Provision for reserve for possible loan losses	400	0.1	1,816	0.4
Provision for reserve for possible investment losses	486	0.1	-	-
Write-down of loans	57	0.0	729	0.1
Depreciation of real estate for rent and others	13,660	2.2	14,029	2.9
Other investment expenses	56,246	9.0	62,845	12.8
Total	622,488	100.0	491,786	100.0

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The Dai-ichi Life Insurance Company, Limited

(4) Asset Composition

						(millions of yen)
			As of March 31, 2023		As of March 31, 2024
			Carrying amount		%	Carrying amount		%
Cash, deposits, and call loans	1,105,912		3.3	864,225		2.5
Securities repurchased under resale agreements	-		-	-		-
Deposit paid for securities borrowing transactions	-		-	-		-
Monetary claims bought	224,555		0.7	206,210		0.6
Trading account securities	-		-	-		-
Money held in trust	6,727		0.0	8,872		0.0
Securities	27,012,086		81.6	28,631,430		82.6
	Domestic bonds	17,075,009		51.6	17,932,880		51.7
	Domestic stocks	3,207,944		9.7	4,036,229		11.6
	Foreign securities	5,930,212		17.9	5,400,341		15.6
		Foreign bonds	4,454,788		13.5	3,742,801		10.8
		Foreign stocks and other securities	1,475,424		4.5	1,657,540		4.8
	Other securities	798,919		2.4	1,261,978		3.6
Loans	2,715,410		8.2	3,109,084		9.0
	Policy loans	250,662		0.8	234,886		0.7
	Ordinary loans	2,464,747		7.4	2,874,198		8.3
Real estate	1,196,750		3.6	1,181,841		3.4
	Real estate for rent	912,282		2.8	901,047		2.6
Deferred tax assets	91,081		0.3	-		-
Others	754,689		2.3	672,797		1.9
Reserve for possible loan losses	(3,328)		(0.0)	(3,927)		(0.0)
Total	33,103,885		100.0	34,670,534		100.0
	Foreign currency-denominated assets	4,937,777		14.9	4,747,199		13.7

Note: "Real estate" represents total amount of land, buildings and construction in progress.

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The Dai-ichi Life Insurance Company, Limited

(5) Other Information on Investments A. Rates of return

				(%)
			Year ended March 31, 2023	Year ended March 31, 2024
Cash, deposits, and call loans	(0.05)	0.03
Securities repurchased under resale agreements	(0.69)	-
Deposit paid for securities borrowing transactions	-	-
Monetary claims bought	2.38	1.73
Trading account securities	-	-
Money held in trust	(0.55)	34.84
Securities	2.62	2.31
	Domestic bonds	2.42	1.35
	Domestic stocks	15.25	22.15
	Foreign securities	0.95	1.73
		Foreign bonds	(1.03)	0.20
		Foreign stocks and other securities	10.24	6.26
Loans	1.44	1.40
	Ordinary loans	1.13	1.14
Real estate	2.86	2.56
Total	2.31	2.08
	Foreign investments	0.79	1.99

Note: 1. Rates of return above are calculated by dividing the net investment income included in ordinary profit by the average daily balance on a book value basis.

1. 2. "Foreign investments" include yen-denominated assets.

2. Average daily balance

				(billions of yen)
			Year ended March 31, 2023	Year ended March 31, 2024
Cash, deposits, and call loans	728.7	886.6
Securities repurchased under resale agreements	0.0	-
Deposit paid for securities borrowing transactions	-	-
Monetary claims bought	232.5	232.5
Trading account securities	-	-
Money held in trust	7.1	6.1
Securities	26,608.5	25,226.0
	Domestic bonds	17,187.5	17,556.1
	Domestic stocks	1,297.5	1,242.5
	Foreign securities	7,362.1	5,333.0
		Foreign bonds	6,071.3	3,984.1
		Foreign stocks and other securities	1,290.8	1,348.8
Loans	2,621.0	2,823.8
	Ordinary loans	2,360.6	2,580.2
Real estate	895.5	922.2
Total	32,813.8	31,712.6
	Foreign investments	8,138.5	6,085.2

Note: 1. "Foreign investments" include yen-denominated assets.

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The Dai-ichi Life Insurance Company, Limited