May 15, 2024
Financial Results for the Fiscal Year Ended March 31, 2024
The Dai-ichi Frontier Life Insurance Co., Ltd. (the "Company"; President: Mamoru Akashi) announces. its financial results for the fiscal year ended March 31,2024.
[Contents] | ||
1. | Business Highlights | ……… p.1 |
2. | Policies in Force as of March 31, 2024 by Benefit Type | ……… p.3 |
3. | Investment of General Account Assets | ……… p.4 |
4. | Unaudited Balance Sheet | ……… p.10 |
5. | Unaudited Statement of Earnings | ……… p.16 |
6. | Breakdown of Ordinary Profit (Fundamental Profit) | ……… p.18 |
7. | Unaudited Statement of Changes in Net Assets | ……… p.20 |
8. | Disclosed Claims Based on Insurance Business Act | ……… p.21 |
9. | Solvency Margin Ratio | ……… p.22 |
10. | Status of Separate Account for the Fiscal Year ended March 31, 2024 | ……… p.23 |
11. | Consolidated Financial Summary | ……… p.24 |
Please note that this is an unofficial translation of the original disclosure in Japanese.
1. Business Highlights
(1) Annualized Net Premiums
Policies in Force
(millions of yen except percentages) | |||||
As of March 31, | As of March 31, | ||||
2023 | % of March 31, | 2024 | % of March 31, | ||
2022 total | 2023 total | ||||
Individual insurance | 549,672 | 110.8 | 683,778 | 124.4 | |
Individual annuities | 414,813 | 103.1 | 493,790 | 119.0 | |
Total | 964,485 | 107.4 | 1,177,569 | 122.1 | |
Medical and survival benefits | 5,397 | 176.1 | 7,827 | 145.0 | |
New Policies | |||||
(millions of yen except percentages) | |||||
Year ended | Year ended | ||||
March 31, 2023 | % of March 31, | March 31, 2024 | % of March 31, | ||
2022 total | 2023 total | ||||
Individual insurance | 94,886 | 157.6 | 123,873 | 130.5 | |
Individual annuities | 125,860 | 218.0 | 177,407 | 141.0 | |
Total | 220,747 | 187.2 | 301,280 | 136.5 | |
Medical and survival benefits | 2,320 | 167.6 | 2,139 | 92.2 | |
Note: 1. Annualized net premiums are calculated by multiplying the per-premium payments by a multiplier that depends on the premium payment terms. For single-premium contracts, the amount is calculated by dividing the premium by the duration of the policy.
2. "Medical and survival benefits" include annualized net premiums related to medical benefits
(e.g. hospitalization and surgery benefits), survival benefits (e.g. specified illness and nursing care benefits), and premiums related to premium waiver benefits (e.g. excluding disability-related causes
but including causes related to specified illness and nursing care).
- 1 - | The Dai-ichi Frontier Life Insurance Co., Ltd. |
(2) Policies in Force and New Policies
Policies in Force
As of March 31, 2023 | As of March 31, 2024 | |||||||
Number of policies | Amount | Number of policies | Amount | |||||
% of March | (millions of | % of March | % of March | (millions of | % of March 31, | |||
(thousands) | 31, 2022 | 31, 2022 | (thousands) | 31, 2023 | ||||
yen) | yen) | 2023 total | ||||||
total | total | total | ||||||
Individual insurance | 910 | 110.0 | 6,649,740 | 110.1 | 1,175 | 129.1 | 8,919,189 | 134.1 |
Individual annuities | 771 | 105.5 | 3,962,170 | 104.3 | 778 | 100.9 | 4,416,816 | 111.5 |
Group insurance | - | - | - | - | - | - | - | - |
Group annuities | - | - | - | - | - | - | - | - |
Note: Policy amount in force for individual annuities is equal to the sum of (a) the amount required to fund annuity payments when they commence for annuities that have not yet commenced paying out and (b) policy reserves for annuities that have commenced paying out.
New Policies
Year ended March 31, 2024
Number of policies | Amount | ||||||
% of March | % of March | Net increase | |||||
(thousands) | 31, 2023 | (millions of yen) | 31, 2023 | New Business | |||
from conversions | |||||||
total | total | ||||||
Individual insurance | 295 | 157.0 | 1,667,071 | 136.8 | 1,667,071 | - | |
Individual annuities | 268 | 107.5 | 1,484,949 | 114.0 | 1,484,949 | - | |
Group insurance | - | - | - | - | - | - | |
Group annuities | - | - | - | - | - | - | |
Year ended March 31, 2023 | |||||||
Number of policies | Amount | ||||||
% of March | % of March | Net increase | |||||
(thousands) | 31, 2022 | (millions of yen) | 31, 2022 | New Business | |||
from conversions | |||||||
total | total | ||||||
Individual insurance | 188 | 231.6 | 1,218,704 | 200.0 | 1,218,704 | - | |
Individual annuities | 249 | 245.2 | 1,302,807 | 289.5 | 1,302,807 | - | |
Group insurance | - | - | - | - | - | - | |
Group annuities | - | - | - | - | - | - | |
Note: Amount of new policies (new business) for individual annuities is equal to the amount required to fund annuity payments when they commence.
- 2 - | The Dai-ichi Frontier Life Insurance Co., Ltd. |
2. Policies in Force as of March 31, 2024 by Benefit Type
Individual Insurance | Individual annuities | Group Insurance | Total | ||||||
Policies | Amount | Policies | Amount | Policies | Amount | Policies | Amount | ||
(thousands) | (millions of yen) | (thousands) | (millions of yen) | (thousands) | (millions of yen) | (thousands) | (millions of yen) | ||
Death benefits | |||||||||
General | 1,175 | 8,919,189 | - | - | - | - | 1,175 | 8,919,189 | |
Accidental | - | - | - | - | - | - | - | - | |
Other | - | - | - | - | - | - | - | - | |
Survival benefits | - | - | 778 | 4,416,816 | - | - | 778 | 4,416,816 | |
Hospitalization benefits | |||||||||
Accidental | - | - | - | - | - | - | - | - | |
Illness | - | - | - | - | - | - | - | - | |
Other | - | - | - | - | - | - | - | - | |
Injury benefits | - | - | - | - | - | - | - | - | |
Surgery benefits | - | - | - | - | - | - | - | - | |
Group annuities | Financial insuarance / | Total | |||||||
Financial annuities | |||||||||
Policies | Amount | Policies | Amount | Policies | Amount | ||||
(thousands) | (millions of yen) | (thousands) | (millions of yen) | (thousands) | (millions of yen) | ||||
Survival benefits | - | - | - | - | - | - | |||
Medical care insurance | ||
Policies | Amount | |
(thousands) | (millions of yen) | |
Hospitalization benefits | - | - |
Group disability | ||
Policies | Amount | |
(thousands) | (millions of yen) | |
Disability benefits | - | - |
Note: Survival benefit amounts for individual annuities are the sum of (a) the amount required to fund annuity payments when they commence for annuities that have not yet commenced paying out and (b) policy reserves for annuities that have commenced paying out.
- 3 - | The Dai-ichi Frontier Life Insurance Co., Ltd. |
3. Investment of General Account Assets
- Overview of Investment of General Account Assets for the Fiscal Year ended March 31, 2024
A. 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.
[Domestic interest rates]
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% |
[U.S. Interest Rates and Foreign Currency]
There was a temporary rise in the ten-year U.S. Treasury Note yield to around 5% due to the strengthening view that the high- interest rate policy by the FRB would be prolonged against the backdrop of the steady economy and employment. Despite this, the range of the rise shrunk due to the prevailing outlook for an early interest rate cuts following the slowdown of the price hikes. The yen depreciated to the level of 151 yen per dollar due to the rising U.S. government bond yield and the expectation that the accommodative financial environment would continue for the time being in Japan even though the Bank of Japan would move toward financial normalization.
Yield on ten-year U.S. government bonds: | April 1, 2023 | 3.468% |
March 31, 2024 | 4.200% | |
yen/U.S. dollar: | April 1, 2023 | ¥133.53 |
March 31, 2024 | ¥151.41 |
[Australian Interest Rates and Foreign Currency]
The ten-year Australian government bond yield temporarily rose to the vicinity of 5% as the slowdown of the price hikes progressed slowly compared to the U.S. due to the steady Australian economy. Meanwhile, the range of the rise shrunk due to the falling U.S. government bond yield and the declining outlook for an additional interest rate increase by the RBA. As for the Australian dollar, although the yen depreciated to the level of 98 yen per Australian dollar due to the rising Australian government bond yield, the depreciation progressed slowly compared to USD/JPY partly due to a sense of caution regarding the Chinese economy.
Yield on ten-year Australian government bonds: | April 1, 2023 | 3.297% |
March 31, 2024 | 3.962% | |
yen/Australian dollar: | April 1, 2023 | ¥89.69 |
March 31, 2024 | ¥98.61 |
B. Investment Policies
In view of the liability characteristics of life insurance policies, assets in the general account are invested in accordance with asset-liability management (ALM) principles with the primary objective of steadily paying annuities, insurance proceeds, and benefits over the long term. As to the yen- and foreign currency-denominated fixed products, those assets are primarily invested in yen-denominated bonds and foreign currency-denominated bonds.
The Company also conducts transactions to reduce guaranteed minimum benefit risk related to individual variable annuities.
C. Investment Results
- Assets 〉
The Company invested primarily in yen-denominated bonds. Foreign-currency denominated insuarance were invested in foreign-currency denominated bonds. The Company also entered into derivative transactions to reduce the guaranteed minimum benefit risk related to individual variable annuities.
- Investment Income and Expenses 〉
Investment income was 837,984 million yen mainly due to foreign exchange gains (565,111 million yen), interest and dividends received (205,002 million yen), and derivative transaction gains (43,763 million yen). Investment expenses were 66,203 million yen, mainly due to losses on sale of securities (64,476 million yen), other investment expenses (1,662 million yen), and losses on redemption of securities (59 million yen).
- 4 - | The Dai-ichi Frontier Life Insurance Co., Ltd. |
(2) Asset Composition
(millions of yen except percentages) | ||||||
As of March 31, 2023 | As of March 31, 2024 | |||||
Carrying value | % | Carrying value | % | |||
Cash, deposits, and call loans | 749,050 | 9.4 | 765,608 | 8.6 | ||
Securities repurchased under resale agreements | - | - | - | - | ||
Deposit paid for securities borrowing transactions | - | - | - | - | ||
Monetary claims bought | 21,550 | 0.3 | 20,240 | 0.2 | ||
Trading account securities | - | - | - | - | ||
Money held in trust | 904,519 | 11.3 | 879,848 | 9.9 | ||
Securities | 6,060,001 | 76.0 | 6,799,695 | 76.6 | ||
Domestic bonds | 1,833,660 | 23.0 | 2,035,977 | 22.9 | ||
Domestic stocks | - | - | - | - | ||
Foreign securities | 4,114,497 | 51.6 | 4,614,347 | 52.0 | ||
Foreign bonds | 4,114,497 | 51.6 | 4,614,347 | 52.0 | ||
Foreign stocks and other securities | - | - | - | - | ||
Other securities | 111,843 | 1.4 | 149,370 | 1.7 | ||
Loans | - | - | - | - | ||
Real estate | 737 | 0.0 | 681 | 0.0 | ||
Deferred tax assets | 52,685 | 0.7 | 56,400 | 0.6 | ||
Others | 184,087 | 2.3 | 357,066 | 4.0 | ||
Reserve for possible loan losses | (59) | (0.0) | (1) | (0.0) | ||
Total | 7,972,573 | 100.0 | 8,879,540 | 100.0 | ||
Foreign currency-denominated assets | 4,337,627 | 54.4 | 4,813,292 | 54.2 | ||
(3) Changes (Increase/Decrease) in Assets | ||||||
(millions of yen) | ||||||
Year ended March 31, 2023 | Year ended March 31, 2024 | |||||
Cash, deposits, and call loans | (302,699) | 16,557 | ||||
Securities repurchased under resale agreements | - | - | ||||
Deposit paid for securities borrowing transactions | - | - | ||||
Monetary claims bought | 5,544 | (1,309) | ||||
Trading account securities | - | - | ||||
Money held in trust | (170,237) | (24,671) | ||||
Securities | (334,897) | 739,693 | ||||
Domestic bonds | 170,100 | 202,317 | ||||
Domestic stocks | - | - | ||||
Foreign securities | (444,620) | 499,849 | ||||
Foreign bonds | (444,620) | 499,849 | ||||
Foreign stocks and other securities | - | - | ||||
Other securities | (60,377) | 37,526 | ||||
Loans | - | - | ||||
Real estate | (57) | (55) | ||||
Deferred tax assets | 10,005 | 3,714 | ||||
Others | (246,403) | 172,979 | ||||
Reserve for possible loan losses | (43) | 58 | ||||
Total | (1,038,789) | 906,967 | ||||
Foreign currency-denominated assets | (962,477) | 475,665 |
- 5 - | The Dai-ichi Frontier Life Insurance Co., Ltd. |
(4) Investment Income
(millions of yen) | |||
Year ended March 31, 2023 | Year ended March 31, 2024 | ||
Interest and dividends | 175,743 | 205,002 | |
Interest from bank deposits | 1,371 | 3,569 | |
Interest and dividends from securities | 173,621 | 200,587 | |
Interest from loans | - | - | |
Rental income | - | - | |
Other interest and dividends | 749 | 845 | |
Gains on trading account securities | - | - | |
Gains on money held in trust | - | 18,349 | |
Gains on investment in trading securities | - | - | |
Gains on sale of securities | 22,488 | 5,687 | |
Gains on sale of domestic bonds | 17,585 | 1,375 | |
Gains on sale of domestic stocks | - | - | |
Gains on sale of foreign securities | 4,902 | 4,311 | |
Others | - | - | |
Gains on redemption of securities | 419 | 10 | |
Derivative transaction gains | - | 43,763 | |
Foreign exchange gains | 308,908 | 565,111 | |
Reversal of reserve for possible loan losses | - | 58 | |
Other investment income | 0 | 2 | |
Total | 507,560 | 837,984 | |
(5) Investment Expenses
(millions of yen) | |||
Year ended March 31, 2023 | Year ended March 31, 2024 | ||
Interest expenses | 5 | 5 | |
Losses on trading account securities | - | - | |
Losses on money held in trust | 2,256 | - | |
Losses on investment in trading securities | - | - | |
Losses on sale of securities | 127,625 | 64,476 | |
Losses on sale of domestic bonds | 6,328 | 3,854 | |
Losses on sale of domestic stocks | - | - | |
Losses on sale of foreign securities | 121,296 | 60,622 | |
Others | - | - | |
Losses on valuation of securities | - | - | |
Losses on valuation of domestic bonds | - | - | |
Losses on valuation of domestic stocks | - | - | |
Losses on valuation of foreign securities | - | - | |
Others | - | - | |
Losses on redemption of securities | 305 | 59 | |
Derivative transaction losses | 23,158 | - | |
Foreign exchange losses | - | - | |
Provision for reserve for possible loan losses | 43 | - | |
Write-down of loans | - | - | |
Depreciation of rented real estate and others | - | - | |
Other investment expenses | 1,878 | 1,662 | |
Total | 155,272 | 66,203 |
- 6 - | The Dai-ichi Frontier Life Insurance Co., Ltd. |
(6) Other Information on Investments A. Rates of return
(%) | |||
Year ended March 31, 2023 | Year ended March 31, 2024 | ||
Cash, deposits, and call loans | 0.86 | 2.37 | |
Securities repurchased under resale agreements | - | - | |
Deposit paid for securities borrowing transactions | - | - | |
Monetary claims bought | 1.00 | 0.98 | |
Trading account securities | - | - | |
Money held in trust | (0.24) | 2.10 | |
Securities | 6.47 | 11.40 | |
Domestic bonds | 3.65 | 3.03 | |
Domestic stocks | - | - | |
Foreign securities | 7.91 | 15.77 | |
Loans | - | - | |
Real Estate | - | - | |
Total | 4.62 | 9.86 | |
Foreign investments | 7.85 | 16.10 | |
Notes: 1. Rates of return above were calculated by dividing the net investment income included in net surplus from operations by the average daily balance on a book value basis.
2. "Foreign investments" include yen-denominated assets.
B. Valuation Gains and Losses on Trading Securities
(millions of yen) | |||||
As of March 31, 2023 | As of March 31, 2024 | ||||
Carrying value | Valuation gains | Carrying value | Valuation gains | ||
on the balance | (losses) included in | on the balance | (losses) included in | ||
sheet | the statement of | sheet | the statement of | ||
earnings | earnings | ||||
Trading securities | 904,519 | (2,256) | 829,755 | 15,497 |
Note: Figures in this table include money held in trust and other instruments classified as trading securities.
- 7 - | The Dai-ichi Frontier Life Insurance Co., Ltd. |
C. Fair Value Information on Securities (Other than trading securities)
(millions of yen)
Book value | Fair value | Gains (losses) | |||||||||
Gains | Losses | ||||||||||
As of March 31, 2024 | |||||||||||
Bonds held to maturity | - | - | - | - | - | ||||||
Policy-reserve-matching bonds | 4,840,476 | 4,550,468 | (290,007) | 17,723 | 307,730 | ||||||
Stocks of subsidiaries and affiliates | - | - | - | - | - | ||||||
Securities available for sale | 2,077,786 | 2,029,552 | (48,234) | 10,410 | 58,644 | ||||||
Domestic bonds | 480,814 | 474,036 | (6,778) | 627 | 7,405 | ||||||
Domestic stocks | - | - | - | - | - | ||||||
Foreign securities | 1,376,386 | 1,335,812 | (40,574) | 7,936 | 48,510 | ||||||
Foreign bonds | 1,376,386 | 1,335,812 | (40,574) | 7,936 | 48,510 | ||||||
Foreign stocks and other securities | - | - | - | - | - | ||||||
Other securities | 149,985 | 149,370 | (615) | 1,596 | 2,212 | ||||||
Monetary claims bought | 20,756 | 20,240 | (516) | - | 516 | ||||||
Certificates of deposit | - | - | - | - | - | ||||||
Others | 49,842 | 50,092 | 249 | 249 | - | ||||||
Total | 6,918,262 | 6,580,020 | (338,242) | 28,133 | 366,375 | ||||||
Domestic bonds | 2,042,756 | 2,004,421 | (38,334) | 11,394 | 49,728 | ||||||
Domestic stocks | - | - | - | - | - | ||||||
Foreign securities | 4,654,921 | 4,355,895 | (299,026) | 14,892 | 313,918 | ||||||
Foreign bonds | 4,654,921 | 4,355,895 | (299,026) | 14,892 | 313,918 | ||||||
Foreign stocks and other securities | - | - | - | - | - | ||||||
Other securities | 149,985 | 149,370 | (615) | 1,596 | 2,212 | ||||||
Monetary claims bought | 20,756 | 20,240 | (516) | - | 516 | ||||||
Certificates of deposit | - | - | - | - | - | ||||||
Others | 49,842 | 50,092 | 249 | 249 | - | ||||||
As of March 31, 2023 | |||||||||||
Bonds held to maturity | - | - | - | - | - | ||||||
Policy-reserve-matching bonds | 4,355,670 | 4,137,776 | (217,893) | 29,122 | 247,016 | ||||||
Stocks of subsidiaries and affiliates | - | - | - | - | - | ||||||
Securities available for sale | 1,786,466 | 1,725,882 | (60,583) | 4,211 | 64,795 | ||||||
Domestic bonds | 429,092 | 422,997 | (6,095) | 643 | 6,738 | ||||||
Domestic stocks | - | - | - | - | - | ||||||
Foreign securities | 1,221,519 | 1,169,490 | (52,028) | 3,554 | 55,583 | ||||||
Foreign bonds | 1,221,519 | 1,169,490 | (52,028) | 3,554 | 55,583 | ||||||
Foreign stocks and other securities | - | - | - | - | - | ||||||
Other securities | 113,812 | 111,843 | (1,968) | 13 | 1,981 | ||||||
Monetary claims bought | 22,041 | 21,550 | (491) | - | 491 | ||||||
Certificates of deposit | - | - | - | - | - | ||||||
Others | - | - | - | - | - | ||||||
Total | 6,142,136 | 5,863,658 | (278,477) | 33,334 | 311,811 | ||||||
Domestic bonds | 1,839,755 | 1,821,640 | (18,115) | 21,150 | 39,266 | ||||||
Domestic stocks | - | - | - | - | - | ||||||
Foreign securities | 4,166,526 | 3,908,624 | (257,902) | 12,170 | 270,072 | ||||||
Foreign bonds | 4,166,526 | 3,908,624 | (257,902) | 12,170 | 270,072 | ||||||
Foreign stocks and other securities | - | - | - | - | - | ||||||
Other securities | 113,812 | 111,843 | (1,968) | 13 | 1,981 | ||||||
Monetary claims bought | 22,041 | 21,550 | (491) | - | 491 | ||||||
Certificates of deposit | - | - | - | - | - | ||||||
Others | - | - | - | - | - | ||||||
Note: 1. The table above includes assets which are considered appropriate to handle as securities as defined in the Financial Instruments and Exchange Law.
2. Money held in trust other than trading securities is included, and its book value and gains (losses) as of March 31, 2024 were 49,842 million yen and 249 million yen respectively.
- 8 - | The Dai-ichi Frontier Life Insurance Co., Ltd. |
*The book value of stocks and other securities without market value and of investment partnerships etc. are as follows:
Not applicable.
D. Fair value Information on Money Held in Trust
(millions of yen) | |||||
Carrying value on | Fair value | Gains (losses) | |||
the balance sheet | |||||
Gains | Losses | ||||
As of March 31, 2024 | 879,848 | 879,848 | 18,349 | 22,362 | 4,013 |
As of March 31, 2023 | 904,519 | 904,519 | (2,256) | 1,857 | 4,113 |
Notes: 1. Fair value equivalents appearing in this table are based on prices calculated using a reasonable method by
trustees of money held in trust.
2. Gains (losses) are valuation gains (losses) that were included in the statement of earnings.
*Information on money held in trust for investment purposes is as follows:
(millions of yen) | ||||
As of March 31, 2023 | As of March 31, 2024 | |||
Carrying value on | Valuation gains | Carrying value on | Valuation gains | |
(losses) included in | (losses) included in | |||
the balance sheet | the statements of | the balance sheet | the statements of | |
earnings | earnings | |||
Money held in trust for investment purposes | 904,519 | (2,256) | 829,755 | 15,497 |
*Information on money held in trust classified as held-to-maturity,policy-reserve-matching, or other money held in trust are as follows:
(millions of yen)
Book value | Fair value | Gains (losses) | ||||||
Gains | Losses | |||||||
As of March 31, 2024 | ||||||||
Money held in trust for held-to-maturity purposes | - | - | - | - | - | |||
Money held in trust for policy reserve matching | - | - | - | - | - | |||
Other money held in trust | 49,842 | 50,092 | 249 | 249 | - | |||
As of March 31, 2023 | ||||||||
Money held in trust for held-to-maturity purposes | - | - | - | - | - | |||
Money held in trust for policy reserve matching | - | - | - | - | - | |||
Other money held in trust | - | - | - | - | - | |||
- 9 - | The Dai-ichi Frontier Life Insurance Co., Ltd. |
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Dai-ichi Life Holdings Inc. published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 11:28:16 UTC.