NEWS RELEASE
August 14, 2023
Ryosuke Mori, President
LIFENET INSURANCE COMPANY(Securities Code: 7157, TSE Growth)

Consolidated Financial Results for 1Q of Fiscal 2023
Ending March 31, 2024 (IFRS)
Insurance service results of 2,274 million yen, up 37.7% year-on-year
TOKYO, August 14, 2023 - LIFENET INSURANCE COMPANY (TSE Growth 7157, President
Ryosuke Mori, URL: https://ir.lifenet-seimei.co.jp/en/) discloses the consolidated financial results
for the first quarter of fiscal 2023 ending March 31, 2024.
The Lifenet Group (the “Group”) has voluntarily adopted International Financial ReportingStandards (“IFRS”) from the first quarter of fiscal 2023 ending March 31, 2024. The figures forthe first quarter of fiscal 2022 ended March 31, 2023 and for fiscal 2022 have also been
restated on the IFRS basis.
1．Overview of the financial results for 1Q of fiscal 2023 ended June 30, 2023
(1) Business results
Condition of policies-in-force
Annualized premium*1 of policies-in-force as of June 30, 2023 stands at 24,408 million yen(101.6% of March 31, 2023). The number of policies-in-force resulted in a total of 576,852(101.4% of March 31, 2023). Annualized premium of new business for 1Q of fiscal 2023 was
747 million yen (77.1% of 1Q of fiscal 2022). The number of new business was 18,471 (77.2%
of 1Q of fiscal 2022). Surrender and lapse ratio*2 for 1Q of fiscal 2023 was 6.8% (6.4% for 1Q of
fiscal 2022).
*1: Annualized premium is the amount of money equivalent to what is to be paid to have the insurance coverage for one
year. All payments for Lifenet products are in monthly installments, we calculate annualized premium as multiplying
the monthly premium by 12 months.
*2: The surrender and lapse ratio is the annual equivalent of the monthly number of policies surrendered and/or lapsed
divided by the monthly average number of policies-in-force.

Results of operations(In millions of yen)
1Q of fiscal 2022

1Q of fiscal 2023

Insurance revenue

4,921

5,500

579

Insurance service results

1,651

2,274

622

Financial results*3

(293)

367

661

Other results*4

(179)

(120)

59

Net income (loss) before
income taxes

1,177

2,521

1,344

789

1,765

976

Net income (loss) attributableto owners of the Company

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

Change1

NEWS RELEASE
Insurance revenue for 1Q of fiscal 2023 increased to 5,500 million yen (111.8% of 1Q of fiscal
2022). The main components of insurance revenue were 2,561 million yen in expected claims
and maintenance costs *5 (“expected claims”), 433 million yen in change in risk adjustment for
non-financial risks related to extinguished risks (“risk adjustment release”) and 1,677 million yen
in CSM*6 recognized for services provided (“CSM release”). Insurance service results increased
to 2,274 million yen (137.7% of 1Q of fiscal 2022) due to actual claims incurred being lower than
expected claims in addition to recording of risk adjustment release and CSM release. Financial
results were 367 million yen mainly due to an increase in valuation gains from investment trusts.
Other results were 120 million yen loss mainly because of recording expenses not directly
related to insurance services.
As a result, net income before income taxes was 2,521 million yen (214.1% of 1Q of fiscal
2022). Net income attributable to owners of the Company was 1,765 million yen (223.8% of 1Q
of fiscal 2022).
With respect to expenses related to insurance contract incurred for 1Q of fiscal 2023,
insurance acquisition cash flows, which are cost directly attributable to the acquisition of
insurance contract groups, the sum of expenses related to marketing, underwriting andsystems, etc., were 2,177 million yen (87.5% of 1Q of fiscal 2022). In addition, maintenancecosts, which were not included in insurance acquisition cash flows, were 1,016 million yen(105.3% of 1Q of fiscal 2022)*3: Financial results are mainly total of investment results from financial assets, insurance finance income or expense
and reinsurance finance income or expense.
*4: Other results are the costs not directly related to insurance services and income/loss other than insurance businessincluding product development costs and results of subsidiaries.
*5: Maintenance costs are the costs directly related to fulfilling contracts and not included in insurance acquisition cash
flows. They are mainly included in costs related to maintenance of insurance contracts and overhead costs forproviding insurance services.
*6: CSM stands for Contractual Service Margin, which represents the unearned profit that the company will recognize as
it provides services over the coverage period.

(2) Financial condition
Assets, liabilities and equities
Total assets as of June 30, 2023 amounted to 96,968 million yen (93,814 million yen as ofMarch 31, 2023). The major account balances were 50,090 million yen in investment securities
mainly consisting of government bonds and corporate bonds with high credit ratings and 30,105
million yen in insurance contract assets. Although insurance contracts are generally recorded asliabilities, the Group records them as insurance contract assets because the insurance contract
liabilities are negative as shown in the table below.
Breakdown of insurance contract liabilities(In millions of yen)
Present value of future cash flows (claims minus premiums)(146,947)

Risk adjustment

33,086

CSM

83,756

Total of insurance contract liabilities

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

(30,105)2

NEWS RELEASE
Liabilities amounted to 18,968 million yen as of June 30, 2023 (18,110 million yen as of March
31, 2023), owing to an increase in deferred tax liabilities. The major account balance was17,214 million yen in deferred tax liabilities.
Equities amounted to 77,999 million yen as of June 30, 2023 (75,704 million yen as of March
31, 2023), due to the recording of net income for 1Q of fiscal 2023.
The consolidated solvency margin ratio, one of the indicators used in administrative
supervision to determine the soundness of management, was 3,289.7% as of June 30, 2023,
which indicated that an adequate level of solvency capacity is maintained.
Cash flows
For 1Q of fiscal 2023, net cash provided by operating activities amounted to 1,196 million yen(63 million yen provided for 1Q of fiscal 2022) mainly due to recording of net income before
income taxes for 1Q of fiscal 2023 though the increase in insurance contract assets had anegative impact. Net cash used by investing activities amounted to 508 million yen (632 million
yen provided for 1Q of fiscal 2022) mainly due to acquisition of investment securities. Net cashused by financing activities amounted to 27 million yen (27 million yen used for 1Q of fiscal
2022) due to repayments of lease obligations.
Based on these activities described above, cash and cash equivalents as of June 30, 2023
totaled 12,813 million yen (12,137 million yen as of March 31, 2023).
(3) Business forecasts
The consolidated business forecasts for fiscal 2023 announced on May 11, 2023 were revised
as shown below. The Group has voluntarily adopted IFRS for its consolidated financial
statements from the first quarter of fiscal 2023 ending March 31, 2024. The business forecasts
for fiscal 2023 are prepared based on IFRS.
(In millions of yen)
Insurance
revenue

Insuranceservice results

Net income
attributable toowners of
the Company

28,50024,900

8,200

5,300

28,20024,900

8,600

5,800

24,033

20,732

6,618

3,562

Annualized
premium ofpolicies-in-force*7

Previous forecasts*8(May 11, 2023)
Revised forecasts(August 14, 2023)(Reference)
Business results
for fiscal 2022*9*7: Annualized premium is the amount of money equivalent to what is to be paid to have the insurance coverage for one
year. All payments for Lifenet products are in monthly installments, we calculate annualized premium as multiplying
the monthly premium by 12 months.
*8: The business forecasts for fiscal 2023 include the impact of group credit life insurance business which started in July2023.
*9: Insurance revenue, insurance service results and net income attributable to owners of the Company are accounts
based on IFRS. Insurance service results and net income attributable to owners of the Company for fiscal 2022
included the impact of the COVID-19 claims (1,378 million yen). The business results for fiscal 2022, which wereannounced on May 11, 2023 along with the business forecasts for fiscal 2023, were disclosed as unaudited
reference. As a result of quarterly review, net income attributable to owners of the Company for fiscal 2022 waschanged from 3,575 million yen to 3,562 million yen.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

3

NEWS RELEASE
The forecast for annualized premium of policies-in-force was revised because the growth ofbusiness performance of individual insurance has not progressed as expected for the firstquarter of fiscal 2023. The forecasts for insurance service results and net income attributable toowners of the Company were also revised mainly due to lower-than-expected insurance claim
payment and reflecting financial results under IFRS for the first quarter of fiscal 2023.
(Reference) Breakdown of business forecasts for annualized premium of policies-in-force(In millions of yen)
Individual
Insurance
Previous forecasts(May 11, 2023)
Revised forecasts(August 14, 2023)

Group Credit
Life Insurance

Total

25,9002,600

28,50025,5002,700

28,20024,033-24,033(Reference)
Business results
for fiscal 2022

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

4NEWS RELEASE
2. Consolidated Financial Statements
The following financial information started to be prepared in accordance with International
Financial Reporting Standards (“IFRS”).
(1) Consolidated statement of financial position
April 1,
2022
ASSETSCash and cash equivalents ···············································

8,801(In millions of yen)March 31,
June 30,
2023
2023
12,137

12,813

Derivative assets·····························································

－

－

0

Investment securities ·······················································

52,83949,31850,090

Other financial assets ·······················································

1,660

954

1,063

Income tax receivable ······················································

27

37

44

Insurance contract assets ·················································

21,912

28,52630,105

Reinsurance contract assets ··············································

854

579

473

Property and equipment ···················································

90

70

66

Right-of-use
assets ··························································
equipment ·····································································
Intangible assets ·····························································

363

254

227

1,432

1,693

1,802

Other assets ··································································

213

243

281

Total assets ·····················································

88,196

93,81496,968LIABILITIESOther financial liabilities ····················································

1,232

1,190

1,226

Reinsurance contract liabilities ···········································

93

94

121

Provisions ·····································································

34

34

34

Lease liabilities ·······························································

363

255

228

Deferred tax liabilities ·······················································

14,352

16,24817,214

Other liabilities ································································

248

287

143

Total liabilities ···················································

16,324

18,11018,968

Share capital ··································································

21,655

21,676

21,676

Capital surplus································································

21,655

21,663

21,663Retained earnings ···························································

24,18427,74729,513

Treasury shares ······························································

(0)

(0)

(0)

Other components of equity ···············································

4,353

4,600

5,132

Total equity attributable to owners of the Company ···71,84875,687

77,985

Non-controlling interests ···················································

23

16

13

Total equity ······················································

71,87175,704

77,999Total liabilities and equity ····································

88,196

93,81496,968EQUITY

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

5NEWS RELEASE(2) Consolidated statement of profit or loss

Insurance revenue ··································································
Insurance service expense ·······················································Net expenses from reinsurance contract held ·······························
Insurance service result ···························································
Interest income ······································································
Impairment losses on financial assets, net ···································
Other financial income ·····························································Net investment income ····························································
Insurance finance income (expense) ··········································
Reinsurance finance income (expense) ·······································
Other revenue ·······································································
Other expense ·······································································
Other financial expense ···························································Net income (loss) before income taxes ·······································
Income taxes expense ····························································Net income (loss) ···································································(In millions of yen)Three months ended June 30
2022
2023
4,921
5,500
(3,195)(3,068)
(74)
(157)
1,651
2,274
74
72
(0)
(0)
(337)
320
(263)
392
(35)
(29)
5
4
20
15
(199)
(134)
(0)
(0)
1,177
2,521
(396)
(758)
781
1,763

Net income (loss) attributable to:
Owners of the Company ························································
Non-controlling interests ························································Net income (loss) ·································································

789
(7)
781

Net income (loss) per share attributable to owners of the Company
Basic ·················································································
Diluted ···············································································

11.32
－

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

1,765
(2)
1,763

25.32
－

6

NEWS RELEASE(3) Consolidated statement of comprehensive income

Net income (loss) ···································································(In millions of yen)Three months ended June 30
2022
2023
781
1,763

Items that may be reclassified subsequently to profit and loss:
Fair value gain/loss on investment equity instruments designated as
at FVTOCI
Insurance finance income (expense) ········································
Reinsurance finance income (expense) ·····································
Items that may be reclassified subsequently to profit and loss
Other comprehensive income net of tax ······································
Total comprehensive income ···················································

(496)

103

857
(107)
253
253
1,034

442
(14)
531
531
2,295

Total comprehensive income attributable to:
Owners of the Company ························································
Non-controlling interests ························································
Total comprehensive income ···················································

1,042
(7)
1,034

2,297
(2)
2,295

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

7

NEWS RELEASE(4) Consolidated statement of cash flows(In millions of yen)Three months ended June 30
Cash flows from operating activities
Net income (losses) before income taxes ····································
Depreciation and amortization ··················································
Investment income ·································································
Other financial expenses ·························································
Losses (gains) related to fixed assets ·········································
Insurance and reinsurance contract ···········································
Decrease (increase) in other assets ···········································
Increase (decrease) related to other liabilities ·······························
Other, net ·············································································
Subtotal ···············································································
Interest and dividends income received ······································
Interest expenses paid ····························································
Income taxes (paid) refund ·······················································Net cash provided by (used in) operating activities ···················Cash flows from investing activities
Purchase of property, equipment and intangible assets ··················
Used in investment transactions ··················································
Proceeds from sales and redemption of securities ·····························
Other, net ···················································································Net cash provided by (used in) investing activities ····················Cash flows from financing activities
Repayments of lease obligations ···············································Net cash provided by (used in) financing activities ···················Net increase (decrease) in cash and cash equivalents ·······················Cash and cash equivalents, beginning of the year ·····························
Currency exchange in cash and cash equivalents ·····························Cash and cash equivalents, end of the period ··································

About LIFENET

2022

2023

1,177
141
263
0
1
(1,168)
(205)
(243)
11
(19)
102
(0)
(18)
63

2,521
135
(393)
0
5
(850)
(71)
(270)
10
1,088
115
(0)
(7)
1,196

(54)
(2,699)
3,386
－
632

(172)
(2,515)
2,178
(0)
(508)

(27)

(27)

(27)
668
8,801
14
9,483

(27)
660
12,137
16
12,813

URL: 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 products
and 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 andprovided solely for readers' convenience. In case of any discrepancy or dispute, the Japanese
document prevails.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

8