ＤＤNEWSRELEASE

November 12, 2019
Ryosuke Mori, President
LIFENET INSURANCE COMPANY(Securities Code: 7157, TSE Mothers)

Revision of Business Forecastfor Fiscal 2019 Ending March 31, 2020
Aim to succeed record of new business in two consecutive years
TOKYO, November 12, 2019 - LIFENET INSURANCE COMPANY (TSE Mothers 7157,President Ryosuke Mori, URL: https://ir.lifenet-seimei.co.jp/en/) announces a revision of its
business forecast for fiscal 2019 ended March 31, 2020, which was announced on May 13,
2019.
1. Business Forecast for Fiscal 2019
(In millions of yen)
Ordinary profit(loss)

Ordinary income

Net income (loss)

Previous forecast (A)16,200(2,000)(2,000)

Revised forecast (B)16,500(2,500)(2,500)Difference (B) – (A)300(500)(500)

Change (%)

1.9%

－－

12,560(1,719)(1,735)(Ref.)
Business results for FY2018

Note: The above business forecast for fiscal 2019 includes the financial impact of modified coinsurance introduced from fiscal 2019. Additional information is on the next page.
(Reference)Previous forecast(May 13, 2019)
Annualized premium1of new business

3,000

Revised forecast(Nov. 12, 2019)
3,300(In millions of yen)(Ref.)
Business results forFY2018
2,773

2. Reasons for Revision
Lifenet’s efforts to further increase our business performance through the pursuit of the twopriority areas stated in the management policy – the innovation of customer experience andenhancement of promotion capabilities – continues in fiscal 2019. Lifenet has made regularimprovements to the websites, especially the smartphone site, and continues to actively invest
in marketing and promotional activities with the purpose of increasing traffic to our website. As aresult, Lifenet’s business performance has been stronger than initially forecasted at thebeginning of the fiscal year, and determines that the steady investment in marketing costs willcontribute to the further growth of the company and increase in brand recognition, thus leading

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ＤＤ
NEWS
RELEASEto the revision of the business forecast for fiscal 2019 ending March 31, 2020.
Subsequently, the revised forecast for annualized premium of new business will be 3,300
million yen from the forecasted 3,000 million yen at the beginning of this fiscal year as Lifenet
aims to succeed the record of new business in two consecutive years.
It should be noted that the current profit and loss statement by statutory accounting
recognizes spending to gain new business as expenses for the current year and tabulates themas a lump sum in the first year of the policy. However, the insurance premiums that bring inrevenue will be collected and booked in our accounting procedures over the long term.
Therefore, as an insurer with a comparatively small number of policies-in-force and a
relatively small amount of insurance premium revenues, the amount of growth in new policy
business will trend toward a negative impact on profitability over the short-term and will have alimited effect on ordinary income, while expenses will rise. Accordingly, ordinary loss and net
loss are expected to be lower than original forecast at the beginning of this fiscal year.
We are participating in reinsurance transactions from fiscal 2019 by modified co-insurance onpart of new business to achieve strong growth continuously. By utilizing reinsurance
appropriately, we will ease the temporary burden imposed on statutory capital by expenses
associated with new business and maintain fiscal soundness.
We expect the impact of reinsurance on fiscal 2019 results forecasts to increase ordinary
income by around 2,000 million yen, ordinary profit by around 1,400 million yen and net income
by around 1,400 million yen.

1.

The amount of money equivalent to what is to be paid to have the insurance coverage for one year. All payments
are monthly installments; thus the annualized premium is calculated as multiplying the monthly premium by 12months.

Note: The financial results forecasts for fiscal 2019 and other figures mentioned above are based on theinformation available as of the date of this release and certain assumptions deemed rational. The actual
results to be disclosed in the future may differ from the forecasted figures due to various factors.

About LIFENETURL： https://ir.lifenet-seimei.co.jp/en/

Remembering the original purpose of life insurance - mutual support - LIFENET INSURANCECOMPANY was founded with the goal of offering simple, convenient and competitively priced
products and services based on the highest levels of business integrity. We sell these productsand services directly to customers over the Internet. We aim to be the leading company driving
the growth of the online life insurance market.
Contact:
Investor Relations, Corporate Planning DepartmentTel:+81-3-5216-7900
e-mail: ir@lifenet-seimei.co.jp
Disclaimer: This is a summarized translation of the original Japanese document, prepared and provided
solely for readers' convenience. In case of any discrepancy or dispute, the Japanese document prevails.

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