Financial Results & Earnings Forecast

Ordinary revenues for the fiscal year amounted to 11,308.2 billion yen, an increase of 1,431.6 billion yen, or 14.5%, compared to the previous fiscal year. This total consists of (1) 6,944.0 billion yen of premium and other income (2.1% increase), (2) 3,735.3 billion yen of investment income (47.7% increase), and (3) 628.8 billion yen of other ordinary revenues (14.6% increase). Premium and other income increased mainly due to higher sales at Daiichi Frontier Life Insurance Co., Ltd.
Meanwhile, ordinary expenses totaled 10,554.5 billion yen, an increase of 15.7% from the previous fiscal year, consisting of (1) 6,447.1 billion yen of benefits and claims (2.0% decrease), (2) 1,814.9 billion yen of provision for policy reserves and others (430.8% increase), (3) 867.0 billion yen of investment expenses (3.0% increase), (4) 1,048.2 billion yen of operating expenses (6.1% increase), and (5) 377.2 billion yen of other ordinary expenses (2.7% increase).
As a result, ordinary profit decreased by 2.0 billion yen, or 0.3%, to 753.6 billion yen. Net income attributable to shareholders of the parent company, which is ordinary profit after extraordinary gains and losses, provision for reserve for policyholder dividends, and total corporate income taxes, decreased by 4.8% to 436.5 billion yen. The decrease in net income was mainly due to the application of the new U.S. insurance accounting standards at Protective Life Corporation.

Total assets as of the end of the fiscal year amounted to 74,159.0 billion yen, an increase of 6.9% from the previous fiscal year-end. Major asset components include 55,576.2 billion yen of securities (4.8% increase), 4,997.1 billion yen of loans (2.6% decrease), 1,239.2 billion yen of tangible fixed assets (2.7% decrease), and 2,062.9 billion yen of reinsurance receivable (0.7% increase).
Total liabilities increased by 6.3% to 69,904.8 billion yen. Policy reserves, which account for the majority of liabilities, amounted to 61,255.1 billion yen (3.4% increase).
Total net assets increased by 16.9% to 4,254.2 billion yen. Net unrealized gains on securities, net of tax, included in net assets, increased by 43.1% to 1,372.6 billion yen.

Ordinary Revenues by Segment

1. Domestic Insurance Business
Ordinary revenues in the domestic insurance business increased by 585.8 billion yen to 8,669.6 billion yen (7.2% increase), mainly due to higher gains on sales of securities at Daiichi Life Insurance Co., Ltd., supported by favorable market conditions, and increased foreign exchange gains at Daiichi Frontier Life Insurance Co., Ltd. as the yen depreciated compared to the previous fiscal year. Segment profit increased by 91.7 billion yen to 676.2 billion yen (15.7% increase), primarily due to the increase in gains on sales of securities at Daiichi Life.

2. Overseas Insurance Business
Ordinary revenues in the overseas insurance business decreased by 113.0 billion yen to 3,559.3 billion yen (3.1% decrease), mainly due to Daiichi Life Reinsurance Bermuda Ltd., where lower U.S. interest rates compared to the previous fiscal year led to an increase in insurance liabilities, resulting in a shift from reversal of policy reserves to provision for policy reserves. Segment profit decreased by 107.1 billion yen to 112.6 billion yen (48.7% decrease), mainly due to lower premium and other income at Protective Life Corporation as reinsurance income declined following increased sales of certain insurance products.

3. Other Businesses
Ordinary revenues in other businesses increased by 140.9 billion yen to 471.4 billion yen (42.7% increase), mainly due to higher dividend income from group companies such as Daiichi Life. Segment profit increased by 119.2 billion yen to 340.2 billion yen (53.9% increase).

The Company forecasts its consolidated ordinary revenues to decrease compared to the previous fiscal year to 10,666.0 billion yen, mainly due to the decrease in investment income at Protective Life Corporation. The Company also forecasts ordinary profit and net income attributable to shareholders of parent company to increase to 869.0 billion yen and 513.0 billion yen, respectively, mainly due to the increase in the overseas life insurance businesses. The above forecasts are based on the Company’s current expectations, taking into account factors such as the information currently available and past experience, and assuming that interest rates, forward exchange rates and stock prices do not substantially vary from those as of March 31, 2026. Therefore, actual results may substantially differ from the forecasts.

Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2027 (April 1, 2026 - March 31, 2027)