Financial Results for the
Fiscal Year Ended March 31, 2024
T&D Holdings, Inc.
(Code Number: 8795, TSE Prime Market)
May 15, 2024
Copyright T&D Holdings, Inc. All Rights Reserved.
Contents
Summary of Earnings Results | P.3 |
Financial KPIs | P.4 |
Consolidated Results of Operations (1) | P.5 |
Consolidated Results of Operations (2) | P.6 |
Full-year Results of Three Life Insurance Companies | P.7 |
Core Profit and Positive Spread | P.8 |
[Reference] Average Assumed Investment Yield | P.9 |
Status of T&D United Capital(consolidated) | P.10 |
Changes in Equity in Gains (Losses) of Affiliates of TDUC | P.11 |
(related to Fortitude) | |
[Reference] CML (Commercial Mortgage Loan) | P.12 |
Sales Results: Taiyo Life | P.13 |
Daido Life | P.14 |
T&D Financial Life | P.15 |
MCEV Results | P.16 |
MCEV Results of Each Company | P.17 |
Movement Analysis of Group MCEV | P.18 |
Sensitivities | P.19 |
Status of Investments | P.20 |
Status of Foreign Currency Denominated Bonds | P.21 |
Breakdown of Foreign Securities and Other Securities | P.22 |
Net Valuation Gains (Losses) on General Account Assets | P.23 |
Status of Reduction of Strategic Shareholdings | P.24 |
[Reference] Transfer to Pure Investment | P.25 |
Trend of ESR | P.26 |
Trend of Shareholder Returns | P.27 |
Capital allocation FY2023 | P.28 |
Full-year Earnings Forecasts (1) | P.29 |
Full-year Earnings Forecasts (2) | P.30 |
[Reference]Earnings Forecasts of Three Life Insurance | P.31 |
Companies for the Year Ending March 31, 2025 | |
Forecasts for Core Profit and Positive Spread | P.32 |
Reference Materials | P.33- |
Copyright T&D Holdings, Inc. All Rights Reserved. | 2 |
Summary of Earnings Results
Group adjusted profit amounted to ¥103.5 billion, the record high.
Sales results of new policies of all three life insurance companies exceeded the plans. Surrender and lapse rate has risen in Taiyo Life and Daido Life.
Value of new business on the sum of the three companies amounted to ¥161.7 billion and was lower than the full-year forecast of ¥174.0 billion.
We have continuously implemented measures to improve capital efficiency.
-Reduction of interest rate risk: Interest matching ratio from 58.4% to 66.4% (Daido Life) -Reduction of balance of hedged foreign currency denominated bonds: approximately ¥350.0 billion (sum of Taiyo Life and Daido Life)
-Reduction of strategic shareholding: Ratio against net assets from 23% to 17%
We decided to implement a share buyback of ¥50.0 billion for the fiscal year ended March 31, 2024. The total payout ratio is 84.4%. Dividend per share for FY2024 will be ¥80 (forecast), up ¥10 from FY2023, a dividend increase for 10 consecutive years.
In the consolidated results of the Company for Q1FY2024, the Company is expected to recorded approx. ¥8.0 billion as adjusted profit (equity in gains/losses of affiliate) related to Fortitude's financial results for the January-March 2024 period. (on a preliminary report basis)
Copyright T&D Holdings, Inc. All Rights Reserved. | 3 |
Financial KPIs
Financial | Compared to | |||||
FY2021 | FY2022 | FY2023 | YoY Change | FY2023 | FY2023 | |
KPIs | Result | Result① | Result② | ②-① | Forecasts③ | Forecasts |
*1 | ②-③ |
Group | ¥39.2 | ¥90.2 | ¥103.5 | +¥13.2 | ¥100.0 | +¥3.5 | |
adjusted profit | billion | billion | billion | billion | billion | billion | |
[¥104.0 billion] *2 | |||||||
Adjusted ROE | 2.7% | 7.6% | 8.6% | +1.0pt | 10.1% | (1.5)Pt | |
*3 | |||||||
Value of new | ¥166.9 | ¥167.0 | ¥161.7 | (¥5.2) | ¥174.0 | (¥12.2) | |
business | billion | billion | billion | billion | billion | billion | |
ROEV*5 | 6.9% | 2.8% | 16.8% | +14.0pt | 7.0% | +9.8Pt |
Group Adjusted Profit / Adjusted EPS
(Billions of yen) | YoY |
¥162.11 | ¥191.97 +18.4% |
¥67.52 | 90.2 | 103.5 | ||
39.2 | ||||
*1 | Announced on May 15, 2023. | FY2021 | FY2022 | FY2023 |
*2 | [ ] is a figure announced on April 30, 2024. (Revision of Consolidated Earnings Forecasts for the Fiscal Year Ended March 31, 2024) | |||
*3 | Calculated using net assets as of March 31, 2023 as the denominator. | |||
*4 | Calculated using net assets as of March 31, 2024 as the denominator. | |||
*5 | ROEV exclude valuation gains/losses related to Fortitude. | |||
Copyright T&D Holdings, Inc. All Rights Reserved. |
FY2024
Forecasts
¥117.0
billion
8.3%
*4
¥160.0
billion
6.1%
4
Consolidated Results of Operation (1)
(Billions of yen) | |||||||||||||||
FY2022 | FY2023 | YoY Change | FY2023 | Compared to FY2023 | FY2023 | FY2024 | |||||||||
FY2021 | Forecasts*3 | Forecasts | Revised | ||||||||||||
① | ② | (②-① ) | Forecasts*5 | ||||||||||||
③ | (②-③) | Forecasts*4 | |||||||||||||
Ordinary revenues | 2,614.3 | 3,214.1 | 3,207.9 | (6.1) | (0.2%) | 2,560.0 | +647.9 | + 25.3% | 3,210.0 | 2,560.0 | |||||
Taiyo Life | 1,439.8 | 961.3 | 989.2 | +27.9 | + 2.9% | 860.0 | +129.2 | + 15.0% | 930.0 | ||||||
Daido Life | 1,032.6 | 1,233.0 | 1,183.7 | (49.2) | (4.0%) | 1,060.0 | +123.7 | + 11.7% | 1,090.0 | ||||||
T&D Financial Life | 485.3 | 980.9 | 1,028.2 | +47.2 | + 4.8% | 590.0 | +438.2 | + 74.3% | 660.0 | ||||||
T&D United Capital | 0.0 | 2.4 | 0.4 | (1.9) | (80.1%) | 0.0 | +0.4 | - | 0.0 | ||||||
Ordinary profit*1 | 57.0 | (74.1) | 159.8 | +233.9 | - | 146.0 | +13.8 | + 9.5% | 160.0 | 180.0 | |||||
Taiyo Life | (86.6) | 48.1 | 55.3 | +7.1 | + 14.9% | 60.0 | (4.6) | (7.8%) | 78.0 | ||||||
Daido Life | 122.7 | 84.0 | 101.6 | +17.5 | + 20.9% | 89.0 | +12.6 | + 14.2% | 103.0 | ||||||
T&D Financial Life | 5.6 | 11.0 | 7.3 | (3.7) | (33.9%) | 1.0 | +6.3 | + 630.5% | 4.0 | ||||||
T&D United Capital | (8.6) | (213.2) | (2.0) | +211.2 | - | (2.0) | (0.0) | - | (3.0) | ||||||
Profit (Net income)*1,2 | 14.1 | (132.1) | 98.7 | +230.9 | - | 87.0 | +11.7 | + 13.5% | 99.0 | 104.0 | |||||
Taiyo Life | (74.1) | 26.8 | 38.9 | +12.1 | + 45.3% | 38.0 | +0.9 | + 2.6% | 43.0 | ||||||
Daido Life | 76.2 | 49.3 | 60.9 | +11.6 | + 23.5% | 52.0 | +8.9 | + 17.1% | 62.0 | ||||||
T&D Financial Life | 3.1 | 7.9 | 4.8 | (3.1) | (39.4%) | 0.0 | +4.8 | - | 2.0 | ||||||
T&D United Capital | (7.9) | (212.4) | (2.4) | +210.0 | - | (1.0) | (1.4) | - | (2.0) | ||||||
Group adjusted profit | 39.2 | 90.2 | 103.5 | +13.2 | + 14.7% | 100.0 | +3.5 | + 3.5% | 104.0 | 117.0 | |||||
Taiyo Life | (74.1) | 26.8 | 38.9 | +12.1 | + 45.3% | 31.0 | +7.9 | + 25.8% | 43.0 | ||||||
Daido Life | 76.2 | 49.3 | 60.9 | +11.6 | +23.5% | 52.0 | +8.9 | +17.1% | 62.0 | ||||||
T&D Financial Life | 1.7 | 9.5 | 1.3 | (8.2) | (85.6%) | 0.0 | +1.3 | - | 2.0 | ||||||
T&D United Capital | 18.6 | 8.2 | 5.7 | (2.5) | (30.4%) | 19.0 | (13.2) | (69.7%) | 10.0 | ||||||
*1 ( ) is loss or Net Loss. | |||||||||||||||
*2 "Profit Attributable to Owners of Parent" | |||||||||||||||
*3 Announced on May 15, 2023. | |||||||||||||||
*4 Announced on April 30, 2024. | |||||||||||||||
*5 Announced on May 15, 2024 | |||||||||||||||
Copyright T&D Holdings, Inc. All Rights Reserved. | 5 |
Consolidated Results of Operation (2)
Breakdown of Group adjusted profit and difference from Profit (Net Income)
(Billions of yen)
Change of Group adjusted profit from | Difference between Group adjusted profit |
the previous year for each company | and Profit (net income) [result] |
+12.1 | +11.6 | +0.2 | 103.5 | +3.4 | 98.7 | ||||
90.2 | (8.2) | ||||||||
(2.5) | |||||||||
(8.2) | |||||||||
FY2022 | FY2023 | (Billions of yen) | |||||||
Group | MVA gains / | Valuation gains | Profit (net | ||||||
Results | Taiyo Life | Daido Life | TDF | TDUC | 1 | adjusted | / losses, etc. | ||
Others* | losses related to | related to | income)*2 | ||||||
profit | TDF | Fortitude | |||||||
FY2022① | 26.8 | 49.3 | 9.5 | 8.2 | (3.7) | 90.2 | (1.6) | (220.7) | (132.1) |
FY2023② | 38.9 | 60.9 | 1.3 | 5.7 | (3.4) | 103.5 | 3.4 | (8.2) | 98.7 |
②-① | +12.1 | +11.6 | (8.2) | (2.5) | +0.2 | +13.2 | +5.0 | +212.5 | +230.9 |
*1 Profits of consolidated subsidiaries other than the above four companies and adjustments among consolidated companies, etc. *2 ( ) is Net Loss.
Copyright T&D Holdings, Inc. All Rights Reserved. | 6 |
Full-yearResults of Three Life Insurance Companies
(Billions of yen)
Taiyo Life | Daido Life | T&D Financial Life | |||||||||||||||
FY2022 | FY2023 | Amount | FY2023 | Amount | FY2022 | FY2023 | Amount of | FY2023 | Amount of | FY2022 | FY2023 | Amount | FY2023 | Amount | |||
(Result) | (Result) | of change | (Forecast) | of change | (Result) | (Result) | change | (Forecast) | change | (Result) | (Result) | of change | (Forecast) | of change | |||
① | ② | ②-① | ③*1 | ②-③ | ① | ② | ②-① | ③*1 | ②-③ | ① | ② | ②-① | ③*1 | ②-③ | |||
Ordinary revenues | 961.3 | 989.2 | +27.9 | 860.0 | +129.2 | 1,233.0 | 1,183.7 | (49.2) | 1,060.0 | +123.7 | 980.9 | 1,028.2 | +47.2 | 590.0 | +438.2 | ||
Income from | 643.3 | 702.8 | +59.5 | 670.0 | +32.8 | 810.3 | 843.7 | +33.4 | 830.0 | +13.7 | 714.6 | 917.5 | +202.8 | 560.0 | +357.5 | ||
insurance premiums | |||||||||||||||||
Ordinary profit | 48.1 | 55.3 | +7.1 | 60.0 | (4.6) | 84.0 | 101.6 | +17.5 | 89.0 | +12.6 | 11.0 | 7.3 | (3.7) | 1.0 | +6.3 | ||
Core profit | 21.2 | 40.7 | +19.4 | 32.0 | +8.7 | 75.0 | 86.5 | +11.5 | 61.0 | +25.5 | (3.2) | (1.4) | +1.7 | (1.0) | (0.4) | ||
Positive spread | 42.0 | 19.5 | (22.5) | 15.0 | +4.5 | 15.6 | 20.9 | +5.2 | 3.0 | +17.9 | (1.9) | (1.0) | +0.8 | (1.0) | (0.0) | ||
Capital gains(losses) | 27.9 | 14.6 | (13.3) | 27.0 | (12.3) | 35.2 | 24.0 | (11.2) | 31.0 | (6.9) | (11.8) | 9.6 | +21.5 | 2.0 | +7.6 | ||
Other one-time | (1.1) | (0.0) | +1.0 | - | (0.0) | (26.1) | (8.9) | +17.2 | (4.0) | (4.9) | 26.1 | (0.8) | (27.0) | 0.0 | (0.8) | ||
gains (losses) | |||||||||||||||||
Extraordinary gains(losses | (2.7) | 5.9 | +8.6 | (4.3) | (4.9) | (0.6) | (0.7) | (0.6) | +0.0 | ||||||||
Net income | 26.8 | 38.9 | +12.1 | 38.0 | +0.9 | 49.3 | 60.9 | +11.6 | 52.0 | +8.9 | 7.9 | 4.8 | (3.1) | 0.0 | +4.8 | ||
Adjusted profit | 26.8 | 38.9 | +12.1 | 31.0 | +7.9 | 49.3 | 60.9 | +11.6 | 52.0 | +8.9 | 9.5 | 1.3 | (8.2) | 0.0 | +1.3 | ||
Key performance |
indicators*2*2 |
New policy sales |
Annualized premiums of
protection-type policies*3
Policy amount*4 | Annualized premiums of policies | ||||
results | 21.8 |
Policy in force sales | 161.4 |
results | |
Value of new business | 49.3 |
20.6 | (1.1) | 20.0 |
162.1 | +0.6 | 164.0 |
28.3 | (21.0) | 45.0 |
+0.6 | 4,287.2 | 4,789.8 | +502.5 |
(1.8) | 46,683.8 | 46,637.6 | (46.2) |
(16.6) | 109.4 | 123.6 | +14.2 |
4,740.0 | +49.8 | 50.5 |
47,020.0 (382.3) 190.2
121.0 | +2.6 | 8.2 |
92.3
263.0
9.7
+41.7 | 48.0 |
+72.8 | 220.0 |
+1.4 | 8.0 |
+44.3
+43.0
+1.7
*1 Announced on May 15, 2023.
*2 New policy sales results and policy in force sales results include individual insurance and individual annuities. New policy sales results includes net increase from conversion
*3 Key performance indicator of Taiyo Life which is the sum of protection portion of the annualized premiums mainly excluding savings-type products. *4 For Daido Life, new policy sales results and policy in force sales results in the above table includes not only individual insurance and individual
annuities but also J-type product, T-type product, and Kaigo Relief alpha, Lump-sumM-type product and so forth.
Copyright T&D Holdings, Inc. All Rights Reserved. | 7 |
Core Profit and Positive Spread
Core Profit
Factors of Increase/Decrease
in Core Profit
(Billions of yen)
172.9 | ||
46.3 | 125.8 | |
93.0 | 40.7 | |
21.2 | ||
129.6 | ||
75.0 | 86.5 | |
(3.0) | (3.2) | (1.4) |
2022/03 2023/03 2024/03
Positive Spread
Sum of Three
Companies
Taiyo Life
Daido Life
T&D Financial Life
(Billions of yen) | [Taiyo Life] | ||||||||||||||||||||
Decrease in | |||||||||||||||||||||
Net investment | payment-related | ||||||||||||||||||||
costs for COVID-19 | |||||||||||||||||||||
income factors such | |||||||||||||||||||||
as decrease in | +30.5 | ||||||||||||||||||||
interest and | Decrease in | +13.5 | +19.4 | ||||||||||||||||||
dividend income | |||||||||||||||||||||
assumed | |||||||||||||||||||||
interests | |||||||||||||||||||||
Other | |||||||||||||||||||||
+1.5(2.0) | |||||||||||||||||||||
(6.2) | Total | ||||||||||||||||||||
factors | |||||||||||||||||||||
(17.8) | Increase in | ||||||||||||||||||||
operating | |||||||||||||||||||||
Increase in reversal of | |||||||||||||||||||||
Increase in | expenses | ||||||||||||||||||||
provision for employees' | |||||||||||||||||||||
currency | retirement benefit: +¥9.2bn | ||||||||||||||||||||
hedging costs | |||||||||||||||||||||
(Billions of yen)
(Billions of yen)
[Daido Life]
83.7
Sum of Three | ||
34.1 | 55.7 | Companies |
39.3 | Taiyo Life |
+10.4
Decrease in assumed interests
+11.4
Decrease in | |
payment-related | |
costs for COVID-19 | +11.5 |
+6.3 +2.1 |
42.0 | ||||||||
52.2 | 19.5 | Daido Life | ||||||
20.9 | ||||||||
15.6 | ||||||||
(1.9) | (1.0) | T&D Financial Life | ||||||
(2.6) |
2022/03 2023/03 2024/03
Net investment | |||||
(2.2) | |||||
such as increase | |||||
income factors | |||||
in interest and | Increase in | ||||
dividend income | operating | ||||
(16.5) | |||||
expenses | |||||
Increase in | |||||
currency | |||||
hedging costs |
Other
factors Total
Decrease in provision for reserve for employees' retirement benefit: +¥2.5bn
*All figures of core profit and positive spread are based on the new standard, | |
including those for prior periods. | 8 |
Copyright T&D Holdings, Inc. All Rights Reserved. |
[Reference] Average Assumed Investment Yield
Average Assumed Investment Yield: Taiyo Life | Average Assumed Investment Yield: Daido Life |
Investment yield on
core profit
(old standard)
2.34%
2.19%
2.11% 2.19%
Investment yield
on core profit
Investment yield on(old standard) core profit
(new standard)
2.22% | 2.37% | 2.34% |
2.08%
Investment yield
on core profit (new standard)
1.83% | 1.85% | 1.87% | Average assumed | 1.91% | ||||
1.74% | 1.73% | |||||||
1.73% | 1.71% | investment yield | 1.66% | |||||
1.74% | (Individual insurance | 1.72% | 1.59% | 1.63% | ||||
1.65% | and annuities) | 1.56% | ||||||
1.65% | 1.64% | 1.47% | 1.63% | |||||
1.57% | 1.51% | |||||||
1.48% | 1.35% | |||||||
1.15% | 1.13% | ||||||||
Average assumed | |||||||||
investment yield | 1.14% | 1.12% | |||||||
2020/03 | 2021/03 | 2022/03 | 2023/03 | 2024/03 | |||||
Positive spread | (6.0) | 12.6 | 34.1 | 42.0 | 19.5 | ||||
old standard | 28.7 | 29.5 | 42.9 | (Billions of yen) |
1.30% | ||||||||||||
Average assumed | ||||||||||||
investment yield | ||||||||||||
Average assumed | (Individual insurance | |||||||||||
investment yield | and annuities) | |||||||||||
2020/03 | 2021/03 | 2022/03 | 2023/03 | 2024/03 | ||||||||
Positive spread | 5.4 | 21.0 | 52.2 | 15.6 | 20.9 | |||||||
old standard | 34.8 | 30.9 | 54.2 | (Billions of yen) |
Copyright T&D Holdings, Inc. All Rights Reserved. | 9 |
Status of T&D United Capital (consolidated)
(Billions of yen) | ||||
FY2021 | FY2022 | FY2023 | Change | |
① | ② | (②-① ) | ||
Ordinary Revenues | 0.0 | 2.4 | 0.4 | (1.9) |
Ordinary Expenses | 8.7 | 215.7 | 2.5 | (213.2) |
Equity in Losses of Affiliates | 6.0 | 211.9 | 0.2 | (211.6) |
Ordinary Profit | (8.6) | (213.2) | (2.0) | +211.2 |
Profit Attributable to Owners of Parent | (7.9) | (212.4) | (2.4) | +210.0 |
Breakdown of Adjusted Profit
(Billions of yen)
FY2021 | FY2022 | FY2023 | Change | |||
① | ② | (②-① ) | ||||
Adjusted Profit | 18.6 | 8.2 | 5.7 | (2.5) | ||
Profit and loss of closed book business*1 | 21.9 | 6.1 | 2.9 | (3.2) | ||
Other than variable annuity block | 21.9 | 12.4 | 9.4 | (3.0) | ||
Variable annuity block | - | (6.2) | (6.4) | (0.2) | ||
Gains (Losses) on change in equity | - | 6.1 | 5.1 | (0.9) | ||
Dividend income, comission fee, etc. | 0.0 | 2.4 | 0.4 | (1.9) | ||
Operating expenses, interest expenses, etc. | (2.6) | (3.8) | (2.2) | +1.5 | ||
Tax, etc. | (0.7) | (2.7) | (0.5) | +2.1 |
* 1 Related to gains/ losses of Fortitude.
Copyright T&D Holdings, Inc. All Rights Reserved. | 10 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
T&D 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 11:16:33 UTC.