NEWS RELEASE
November 15, 2023
Ryosuke Mori, President
LIFENET INSURANCE COMPANY(Securities Code: 7157, TSE Growth)

Consolidated Financial Results for 2Q of Fiscal 2023
Ending March 31, 2024 (IFRS)
Insurance service results of 4,088 million yen, up 38.8% year-on-year
TOKYO, November 15, 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 second quarter of fiscal 2023 ending March 31, 2024.
The Lifenet Group (the “Group”) has voluntarily adopted International Financial ReportingStandards (“IFRS”) since the first quarter of fiscal 2023 ending March 31, 2024. The figures forthe second 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 2Q of fiscal 2023 ended September 30, 2023
(1) Business results
Condition of policies-in-force
The Group launched group credit life insurance (“GCL”) business since July 2023 with theaim of expanding new opportunity for profit growth. Annualized premium*1 of policies-in-force forindividual life insurance and GCL combined as of the end of 2Q of fiscal 2023 stands at 27,255
million yen (113.4% of March 31, 2023). Annualized premium of policies-in-force for individuallife insurance and GCL was 24,685 million yen (102.7% of March 31, 2023) and 2,570 million
yen, respectively.
The business performance of individual life insurance is as follows. The number of policies-inforce resulted in a total of 582,784 (102.5% of March 31, 2023). Annualized premium of new
business for the six months ended September 30, 2023 was 1,387 million yen (65.9% of the six
months ended September 30, 2022) and the number of new business was 34,507 (64.1% of thesix months ended September 30,2022). Surrender and lapse ratio*2 for the six months ended
September 30, 2023 was 6.7% (6.3% of the six months ended September 30, 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 (for GCL, expected premium income for the next month based on the in-force business) by 12months.
*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.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

1

NEWS RELEASE
Results of operations(In millions of yen)
2Q of fiscal 2022

2Q of fiscal 2023

ChangeInsurance revenue

10,025

11,766

1,740

Insurance service results

2,946

4,088

1,142

Financial results*3

(423)

66

490

Other results*4

(374)

(228)

146

Net income (loss) before
income taxes

2,147

3,926

1,778

Net income (loss) attributableto owners of the Company

1,437

2,759

1,321

Insurance revenue for the six months ended September 30, 2023 increased to 11,766 million
yen (117.4% of the six months ended September 30,2022). Insurance revenue for individuallife insurance and GCL was 11,170 million yen and 595 million yen, respectively.
As for individual life insurance, the main components of insurance revenue were 5,177 million
yen in expected claims and maintenance costs*5, 872 million yen in change in risk adjustment
for non-financial risks related to extinguished risks (“risk adjustment release”) and 3,435 million
yen in CSM*6 recognized for services provided (“CSM release”). Insurance service results
increased to 4,088 million yen (138.8 % of the six months ended September 30,2022) mainly
due to the recording of risk adjustment release and CSM release. Financial results were 66
million yen mainly due to an increase in valuation gains from investment trusts. Other results
were 228 million yen loss mainly because of recording expenses not directly related toinsurance services.
As a result, net income before income taxes was 3,926 million yen (182.8% of the six months
ended September 30,2022). Net income attributable to owners of the Company was 2,759
million yen (191.9 % of the six months ended September 30, 2022).
With respect to expenses related to insurance contract incurred for the six months ended
September 30, 2023, insurance acquisition cash flows, which are cost directly attributable to theacquisition of insurance contract groups, the sum of expenses related to marketing,underwriting and systems, etc., were 4,400 million yen (87.1% of the six months ended
September 30,2022). In addition, maintenance costs, which were not included in insurance
acquisition cash flows, were 2,098 million yen (107.3% of the six months ended September 30,
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.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

2

NEWS RELEASE(2) Financial condition
Assets, liabilities and equities
Total assets as of September 30, 2023 amounted to 105,830 million yen (93,814 million yen
as of March 31, 2023). The major account balances were 48,340 million yen in investment
securities mainly consisting of government bonds and corporate bonds with high credit ratingsand 29,146 million yen in insurance contract assets. Although insurance contracts are generally
recorded as liabilities, the Group records them as insurance contract assets because theinsurance contract liabilities in individual life insurance are negative as shown in the table below.
Breakdown of insurance contract liabilities are present value of future cash flows of minus
143,711 million yen, risk adjustment of 27,029 million yen and CSM of 87,535 million yen, which
are related to individual life insurance. In addition, contracts measured under the premium
allocation approach of 346 million yen, which are related to GCL, were recorded.
Breakdown of insurance contract liabilities(In millions of yen)
Present value of future cash flows (claims minus premiums)(143,711)

Risk adjustment

27,029CSM

87,535

Insurance contract liabilities related to individual life insurance: total
Insurance contract liabilities related to GCL(Contracts measured under the premium allocation approach)(29,146)
346

Liabilities amounted to 18,776 million yen as of September 30, 2023 (18,110 million yen as ofMarch 31, 2023), owing to an increase in deferred tax liabilities. The major account balance was
16,921 million yen in deferred tax liabilities.
Equities amounted to 87,054 million yen as of September 30, 2023 (75,704 million yen as ofMarch 31, 2023), due to raising new capital through public offering and third-party allotment andrecording of net income for the six months ended September 30, 2023.
The consolidated solvency margin ratio, one of the indicators used in administrative
supervision to determine the soundness of management, was 2,760.9% as of September 30,
2023, which indicated that an adequate level of solvency capacity is maintained.
Cash flows
For the six months ended September 30, 2023, net cash provided by operating activities
amounted to 3,070 million yen (909 million yen provided for the six months ended September
30, 2022) mainly due to recording of net income before income taxes though the increase ininsurance contract assets had a negative impact. Net cash used by investing activities
amounted to 377 million yen (1,702 million yen used for the six months ended September 30,2022) mainly due to purchase of property, equipment and intangible assets. Net cash provided
by financing activities amounted to 9,737 million yen (54 million yen used for the six months
ended September 30, 2022) due to the issuance of new shares through public offering andthird-party allotment.
Based on these activities described above, cash and cash equivalents as of September 30,
2023 totaled 24,589 million yen (12,137 million yen as of March 31, 2023).

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

3

NEWS RELEASE(3) Business forecasts
The consolidated business forecasts for fiscal 2023 announced on August 14, 2023 remains
unchanged as shown below.
The Group has voluntarily adopted IFRS for its consolidated financial statements since thefirst quarter of fiscal 2023 ending March 31, 2024. The business forecasts for fiscal 2023 are
prepared based on IFRS.
(In millions of yen)
Annualized
premium ofpolicies-in-force

Insurance
revenue

Insuranceservice results

Net income
attributable toowners of
the Company

28,20024,900

8,600

5,800

24,033

20,732

6,618

3,562

Business forecasts*7(August 14, 2023)(Reference)
Business results
for fiscal 2022*8*7: The business forecasts for fiscal 2023 include the impact of GCL business which started in July 2023.
*8: 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).

(Reference) Breakdown of business forecasts for annualized premium of policies-in-force(In millions of yen)

Business forecasts(August 14, 2023)

Individual Life
Insurance

Group Credit
Life Insurance

25,5002,700

28,20024,033-24,033

Total(Reference)
Business results
for fiscal 2022

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

4NEWS RELEASE
2. Consolidated Financial Statements
The following financial information was prepared in accordance with International Financial
Reporting Standards (“IFRS”) .
(1) Consolidated statement of financial position
April 1,
2022
ASSETSCash and cash equivalents ············································
Investment securities ····················································
Other financial assets ···················································
Income tax receivable ···················································
Insurance contract assets ··············································
Reinsurance contract assets ··········································
Property and equipment ················································
Right-of-use
assets ······················································
equipment··································································
Intangible assets ·························································
Other assets ·······························································
Total assets ··················································(In millions of yen)March 31,
Sep. 30,
2023
2023

8,801
52,8391,660
27
21,912
854
90
363
1,432
213
88,196

12,13749,318954
3728,526
579
70
254
1,693
243
93,814

24,58948,340963
1029,146
335
84
200
1,876
283
105,830

LIABILITIES
Derivative liabilities ······················································
Other financial liabilities ················································
Insurance contract liabilities ···········································
Reinsurance contract liabilities ·······································
Provisions ··································································
Lease liabilities····························································
Deferred tax liabilities ···················································
Other liabilities ····························································
Total liabilities ················································EQUITY

－
1,232
－
93
34
363
14,352248
16,324

－
1,190
－
94
34
255
16,248287
18,110

4
978
346
64
34
201
16,921
226
18,776

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

21,655

21,676

26,617

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

21,655

21,66326,552Retained earnings························································

24,18427,74730,506

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

(0)

(0)

(0)

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

4,353

4,600

3,360

Total equity attributable to owners of the Company

71,84875,68787,036

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

23

16

17

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

71,87175,70487,054

Total liabilities and equity ·································

88,196

93,814

105,830

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

5NEWS RELEASE(2) Consolidated statement of profit or loss
(In millions of yen)Six months ended Sep. 30
2022

2023

Insurance revenue ······························································

10,025

11,766

Insurance service expense ···················································(6,941)(7,294)Net expenses from reinsurance contract held ···························

(137)

(383)

Insurance service result ·······················································

2,946

4,088

Interest income ··································································

150

151

Impairment losses on financial assets, net ·······························

(0)

(1)

Other financial income ·························································

(539)

(33)

Net investment income ························································

(390)

116

Insurance finance income (expense) ······································

(38)

(58)

Reinsurance finance income (expense) ···································

5

7

Other revenue ····································································

33

39

Other expense ···································································

(406)

(266)

Other financial expense ·······················································

(1)

(1)

Net income (loss) before income taxes····································

2,147

3,926

Income taxes expense ·························································(723)(1,172)

Net income (loss)································································

1,424

2,753

Owners of the Company·····················································

1,437

2,759

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

(13)

(5)

Net income (loss)······························································

1,424

2,753

Net income (loss) attributable to:

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

20.63

39.04

Diluted ············································································－－

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

6

NEWS RELEASE(In millions of yen)Three months ended Sep. 30
2022

2023

Insurance revenue ······························································

5,104

6,265

Insurance service expense ···················································(3,745)(4,225)Net expenses from reinsurance contract held ···························

(63)

(225)

Insurance service result ·······················································

1,294

1,813

Interest income ··································································

76

79

Impairment losses on financial assets, net ·······························

(0)

(0)

Other financial income ·························································

(202)

(354)

Net investment income ························································

(126)

(275)

Insurance finance income (expense) ······································

(3)

(28)

Reinsurance finance income (expense) ···································

0

3

Other revenue ····································································

12

23

Other expense ···································································

(206)

(131)

Other financial expense ·······················································

(1)

(1)

Net income (loss) before income taxes····································

969

1,404

Income taxes expense ·························································

(326)

(413)

Net income (loss)································································

643

990

Owners of the Company·····················································

648

993

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

(5)

(2)

Net income (loss)······························································

643

990

Net income (loss) attributable to:

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

9.31

Diluted ············································································－

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

13.87
－

7

NEWS RELEASE(3) Consolidated statement of comprehensive income

Net income (loss)································································(In millions of yen)Six months ended Sep. 30
2022
2023
1,424
2,753

Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Financial assets measured at fair value through othercomprehensive income ······················································
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 ···············································

(772)
1,586
(157)
656
656
2,080

(571)
(677)
9
(1,239)(1,239)1,514

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

2,094
(13)
2,080

1,519
(5)
1,514

Net income (loss)································································(In millions of yen)Three months ended Sep. 30
2022
2023
643
990

Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Financial assets measured at fair value through othercomprehensive income ······················································
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 ···············································

(275)
728
(50)
403
403
1,046

(675)
(1,120)23(1,771)(1,771)(781)

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

1,051
(5)
1,046

(778)
(2)
(781)

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

8

NEWS RELEASE(4) Consolidated statement of changes in equity(In millions of yen)Six months ended Sep. 30
2022
2023
Equity attributable to owners of the Company:
Share capital
Balance at the beginning of the year ························
Transactions with owners
Issuance of new shares ··································
Issuance of new shares-restricted stock ·············
Total transactions with owners ·························
Balance at the end of the period ······························
Capital surplus
Balance at the beginning of the year ························
Transactions with owners
Issuance of new shares ··································
Issuance of new shares-restricted stock ·············
Changes in interests in subsidiaries ··················
Total transactions with owners ·························
Balance at the end of the period ······························
Retained earnings
Balance at the beginning of the year ························
Comprehensive income
Net income (loss) ··········································
Total Comprehensive income ···························
Balance at the end of the period ······························
Treasury shares
Balance at the beginning of the year ························
Transactions with owners
Purchase of treasury shares ···························
Total transactions with owners ·························
Balance at the end of the period ······························
Other components of equity
Financial assets measured at fair value through othercomprehensive income
Balance at the beginning of the year ························
Comprehensive income
Other comprehensive income ·························
Total Comprehensive income ··························
Balance at the end of the period ······························
Insurance finance expense reserve
Balance at the beginning of the year ························
Comprehensive income
Other comprehensive income ·························
Total Comprehensive income ·························
Balance at the end of the period ······························

21,655

21,676－21
21
21,676

4,918
21
4,940
26,61721,655

21,663－21(12)
8
21,663

4,873
21
(6)
4,888
26,552

24,18427,7471,437
1,437
25,6222,759
2,759
30,506

(0)

(0)

(0)
(0)
(0)

－
－
(0)

926

56

(772)
(772)
154

(571)
(571)
(515)

3,427

4,543

1,428
1,428
4,855

(667)
(667)
3,875

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

9

NEWS RELEASE(In millions of yen)Six months ended Sep. 30
2022
2023
Total other components of equity
Balance at the beginning of the year ·······················
Comprehensive income
Other comprehensive income ························
Total Comprehensive income ························
Balance at the end of the period ····························
Equity attributable to owners of the company
Balance at the beginning of the year ·······················
Comprehensive income
Net income (loss) ········································
Other comprehensive income ························
Total Comprehensive income ·························
Transactions with owners
Issuance of new shares ································
Purchase of treasury shares ··························
Issuance of new shares-restricted stock ···········
Changes in interests in subsidiaries ················
Total transactions with owners ·······················
Balance at the end of the period ····························
Non-controlling interests:
Balance at the beginning of the year ·······················
Comprehensive income
Net income (loss) ········································
Total Comprehensive income ·························
Transactions with owners
Changes in interests in subsidiaries ················
Total transactions with owners ·······················
Balance at the end of the period ····························
Equity:Balance at the beginning of the year ·······················
Comprehensive income
Net income (loss) ········································
Other comprehensive income ························
Total Comprehensive income ·························
Transactions with owners
Issuance of new shares ································
Purchase of treasury shares ··························
Issuance of new shares-restricted stock ···········
Total transactions with owners ·······················
Balance at the end of the period ·····························

4,353

4,600

656
656
5,010

(1,239)(1,239)3,360

71,84875,687

1,437
656
2,094

2,759
(1,239)
1,519

－
(0)
43
(12)
30
73,973

9,791
－
43
(6)
9,829
87,036

23

16

(13)
(13)

(5)
(5)

12
12
22

6
6
17

71,87175,704

1,424
656
2,080

2,753
(1,239)
1,514

－
(0)
43
43
73,995

9,791
－
43
9,835
87,054

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

10

NEWS RELEASE(5) Consolidated statement of cash flows(In millions of yen)Six months ended Sep. 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 ·······································
Decrease (increase) related to other liabilities ··························
Other, net ··········································································
Subtotal ············································································
Interest received ·································································
Dividends received······························································
Interest expenses paid ·························································
Income taxes paid·······························································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 investment ···················
Other ···············································································Net cash provided by (used in) investing activities ················Cash flows from financing activities
Repayments of lease obligations ···········································
Issuance of new shares ·······················································
Payments of treasury stocks ·················································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·······························

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

2022

2023

2,147
284
390
1
1
(1,908)
(106)
(187)
33
656
162
89
(1)
2
909

3,926
289
(116)
1
5
(987)
(38)
(278)
21
2,822
145
95
(1)
8
3,070

(185)
(6,646)5,130－(1,702)(443)(4,307)
4,397
(24)
(377)

(54)
－
(0)
(54)
(847)
8,801
15
7,969

(54)
9,791
－
9,737
12,43012,13722
24,58911

NEWS RELEASE
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 products andservices 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.

12