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Latest Financial Results and Forecast
Latest Financial Results
Q2 FY2023 Consolidated Financial Results announced on November 13, 2023
Core profit increased mainly due to a decline in insurance claims payments for COVID-19. In addition, ordinary profit for Q2 FY2023 was ¥ 99.3 billion, a 187.5% increase year on year, owing to significantly improved capital gains.
Net income for Q2 FY2023 increased 4.4% year on year to ¥ 50.4 billion, as capital gains, etc. were neutralized by reserve for price fluctuations.
Annualized premiums*1 from new policies*2 for individual insurance in 2Q FY2023 increased by 38.1% year on year to \ 45.2 billion, which continued on a course toward recovery.
Annualized premiums from policies in force*3 for individual insurance in Q2 FY2023 decreased by 4.3% from the end of the previous fiscal year to \ 3,078.7 billion.
The number of new policies in Q2 FY2023 increased by 68.7% year on year.
- “Annualized premiums” are the amount of insurance premiums adjusted according to differences in payment method (monthly, yearly, etc.), and converted to one year (12 months). Annualized premiums from new policies and policies in force are indicators that show the size of sales of life insurance companies as with the amount of insurance premiums and others.
- New policies include net increase by conversion.
- Includes reinsured Postal Life Insurance Policies received from the Organization for Postal Savings, Postal Life Insurance and Post Office Network (limited to insurance from Postal Life Insurance Policies).
EV* for Q2 FY2023 increased by 3.2% from the end of the previous fiscal year to \ 3,575.5 billion mainly due to an increase in unrealized gains of domestic stocks holdings resulting from an increase in the market value of domestic stocks, etc.
- EV is an abbreviation for Embedded Value, and one of the corporate value indicators for life insurance companies.
The profit-loss structure in the life insurance business involves a loss at the time of sale and profit over a policy’s duration. A loss occurs temporarily at the time of sale, caused by a considerable amount of expenses generally incurred with the sale of a policy. Future profit is generated as the policy’s long duration serves to provide revenues over a long period of time, covering these initial expenses.
Under the current statutory accounting practices in Japan, gains and losses are recognized as they occur in each fiscal year. EV, on the other hand, is used to represent the present value of gains and losses that cover the entire duration. EV is the sum of the adjusted net worth, which reflects gains/losses from business activities in the past, and the value of in-force covered business, which is the present value of the expected future profits from the in-force covered business.
- With regard to methodology and assumptions for the calculation of EV (Embedded Value) and value of new business, please refer to disclosure document for EV or Conference Call Material for each period.
For details, please check the latest ‘Conference Call Material’
Financial Results Forecast
FY2023 Consolidated Financial Results Forecast announced on May 15, 2023
Net income for FY2023 is expected to decrease from the end of the previous fiscal year, due primarily to a decrease in the volume of policies in force and a decrease in positive spread, despite of a decrease of the impact of losses related to COVID-19.
(Billions of yen)
|Net income per share||¥ 247.91||¥ 249.48||¥ 188.13|
- The figures reflect the financial results forecast revision announced on April 28, 2023.
Please check the latest IR news for timely disclosure of any revisions to the financial results forecast.
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