NEWS RELEASE
February 9, 2023
Ryosuke Mori, President
LIFENET INSURANCE COMPANY(Securities Code: 7157, TSE Growth)

Financial Results for 3Q of Fiscal 2022 Ending March 31, 2023
Annualized premium of in-force business of 23,528 million yen,up 9.4% from March 31, 2022
TOKYO, February 9, 2023 - LIFENET INSURANCE COMPANY (TSE Growth 7157,
President Ryosuke Mori, URL: https://ir.lifenet-seimei.co.jp/en/) discloses financial results for thethird quarter of fiscal 2022 ending March 31, 2023.
1．Overview of the financial results for 3Q of fiscal 2022
(1) Business results
Condition of policies-in-force
Annualized premium*1 of new business in 3Q ended December 31, 2022 was 923 million yen(98.9% of 3Q of fiscal 2021). The number of new business was 22,612 (100.5% of 3Q of fiscal
2021). Annualized premium of new business for the nine months ended December 31, 2022
was 3,030 million yen (97.5% of the nine months ended December 31, 2021). The number of
new business for the nine months ended December 31, 2022 was 76,404 (100.2% of the ninemonths ended December 31, 2021).
Annualized premium of policies-in-force as of the end of 3Q of fiscal 2022 stands at 23,528
million yen (109.4% of March 31, 2022). The number of policies-in-force resulted in a total of
556,942 (109.8% of March 31, 2022). Surrender and lapse ratio*2 for the nine months ended
December 31, 2022 was 6.4% (6.6% for the nine months ended December 31, 2021).
*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
Insurance premiums and other for the nine months ended December 31, 2022 increased to
21,599 million yen (115.4% of the nine months ended December 31, 2021) due to an increase inpremium income by growth of in-force business, and effect from modified co-insurance.
Investment income was 588 million yen (113.1% of the nine months ended December 31, 2021)
mainly due to an increase in interest, dividends and other income and gains on money held in
trust. Other ordinary income was 61 million yen. As a result, ordinary income for the ninemonths ended December 31, 2022 amounted to 22,249 million yen (115.3% of the nine months
ended December 31, 2021).
Insurance claims and other was 9,137 million yen (148.0% of the nine months ended
December 31, 2021) mainly due to an increase in insurance benefits related to COVID-19 andreinsurance commission from modified co-insurance. The ratio of insurance payment amounts
to insurance premiums was 27.5% for the nine months ended December 31, 2022, comparedwith 19.9% for the nine months ended December 31, 2021. In addition, payment of insurance
claims and benefits related to COVID-19 was 1,326 million yen for the nine months ended
December 31, 2022. Provision for policy reserves and other came to 5,612 million yen (110.7%of the nine months ended December 31, 2021). The ratio of provision for policy reserves toinsurance premiums was 32.2% for the nine months ended December 31, 2022, compared with33.6% for the nine months ended December 31, 2021. Investment expenses was 93 million yen

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE
mainly due to the recording of loss on sale of securities. Operating expenses amounted to 9,924
million yen (113.8% of the nine months ended December 31, 2021) mainly due to theinvestment in our marketing spend including advertising. The components of operating
expenses were 6,424 million yen in marketing expenses (109.6% of the nine months ended
December 31, 2021), 1,107 million yen in customer service expenses (116.1% of the ninemonths ended December 31, 2021), and 2,392 million yen in system and other expenses(125.4% of the nine months ended December 31, 2021). Other ordinary expenses was 1,213
million yen (95.3% of the nine months ended December 31, 2021) . Consequently, ordinary
expenses for the nine months ended December 31, 2022 totaled 25,980 million yen (122.3% of
the nine months ended December 31, 2021).
As a result, ordinary profit totaled 3,731 million yen loss for the nine months ended December
31, 2022, compared with 1,948 million yen loss for the nine months ended December 31, 2021.
Net income was 3,755 million yen loss, compared with 2,009 million yen loss for the ninemonths ended December 31, 2021.
In addition, fundamental profit, which is an indicator for the profitability of life insurancecompanies, amounted to 3,744 million yen loss, compared with 1,964 million yen loss for the ninemonths ended December 31, 2021. The components of fundamental profit were 1,662 million yen
in mortality margin, 5,430 million yen loss in expense margin and 24 million yen in interest margin.
We are participating in reinsurance transactions from fiscal 2019 by modified co-insurance onpart of our business to achieve continuous growth. By utilizing reinsurance appropriately, we willease the temporary burden imposed on statutory capital by expenses associated with new
business and maintain fiscal soundness. The reinsurance transactions are agreements thattransfer the risk and the profit (loss) structure of the reinsured business to the reinsurancecompany for a certain period of time. We receive ceding commission in accordance with the new
business costs associated with the reinsured business in the initial fiscal year. This leads to anincrease in ordinary income. On the other hand, after the ceding commission is recorded
reinsurance accounts receivable as asset, it is amortized by the profit generated from thereinsured business over following fiscal years. This leads to a decrease in ordinary profit and net
profit. Once the balance of reinsurance accounts receivable is amortized to zero, the reinsurance
agreement terminates, and subsequent profit on the reinsured business belongs to Lifenet.
Accordingly, for the nine months ended December 31, 2022, the modified co-insurance resulted inraising ordinary income by 4,213 million yen (3,577 million yen of the nine months ended
December 31, 2021) , ordinary profit by 549 million yen (1,037 million yen of the nine months
ended December 31, 2021), and net income by 549 million yen (1,037 million yen of the ninemonths ended December 31, 2021).
(2) Financial condition
Assets, liabilities and net assets
Total assets as of December 31, 2022 amounted to 67,897 million yen (67,820 million yen asof March 31, 2022). The major account balance was 47,583 million yen in securities mainly
consisting of government bonds and corporate bonds with high credit ratings. Reinsurance
accounts receivable was 4,522 million yen including 4,229 million yen of the balance of
unamortized ceding commission for modified co-insurance.
Liabilities amounted to 51,031 million yen as of December 31, 2022 (45,749 million yen as ofMarch 31, 2022), owing to an increase in policy reserves. The major account balances were
47,908 million yen in policy reserves and 1,246 million yen in reserves for outstanding claims.
Net assets amounted to 16,866 million yen as of December 31, 2022 (22,071 million yen asof March 31, 2022) mainly due to the recording of net loss for the nine months ended December

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE
31, 2022 and a decrease in valuation difference on available-for-sale securities. It includes theeffect of raising retained earnings due to the utilization of modified co-insurance. On the other
hand, after the ceding commission is recorded reinsurance accounts receivable as asset, it isamortized by the profit generated from the reinsured business over following fiscal years. This
leads to a decrease in net assets accordingly.
The solvency margin ratio as of December 31, 2022 was 3,140.6% (3,182.8% as of March
31, 2022), which indicated that an adequate level of payment capacity was maintained.
Cash flows
For the nine months ended December 31, 2022, net cash provided by operating activities
amounted to 1,230 million yen (2,181 million yen provided for the nine months ended December
31, 2021) though operating expenses increased. Net cash used by investing activities
amounted to 1,897 million yen (6,537 million yen used for the nine months ended December 31,2021) mainly due to acquisition of securities. Net cash used by financing activities amounted to
2 million yen (9,669 million yen provided for the nine months ended December 31, 2021).
Based on these activities described above, cash and cash equivalents as of December 31,
2022 totaled 7,092 million yen (7,761 million yen as of March 31, 2022).
(3) Business forecasts
The business forecasts for fiscal 2022 ending March 31, 2023 which was announced on
November 10, 2022 remains unchanged as shown below.
(In millions of yen)
Ordinary income
Ordinary profit (loss)
Net income (loss)
Business forecasts
for fiscal 2022
(Reference)
Business results

30,000(5,000)(5,000)26,167(3,245)(3,319)for fiscal 2021
The business forecasts for fiscal 2022 includes the impact of reinsurance transactions bymodified co-insurance. We expect the impact of these reinsurance transactions on fiscal 2022
forecasts to increase ordinary income by around 5,900 million yen, ordinary profit and net
income by around 800 million yen. This impact includes the effects of amortization ofreinsurance accounts receivable generated from reinsured business in past years.
As the table below indicates, we project annualized premium of policies-in-force of 24,300
million yen and annualized premium of new business of 4,200 million yen.

(Reference) Annualized premium

Business forecasts
for fiscal 2022
(Reference)
Business results
for fiscal 2021

Annualized premium(In millions of yen)
Annualized premiumof policies-in-forceof new business

24,3004,200

21,511

4,089

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE
2. Non-consolidated Financial Statements(1) Balance Sheets(In millions of yen)March 31,
Dec. 31,
2022
2022
ASSETSCash and deposits ·····························································
Monetary claims bought ······················································
Money held in trust ·····························································
Securities ·········································································
Government bonds ························································
Municipal bonds ····························································
Corporate bonds ···························································
Stocks ·········································································
Foreign securities ··························································
Other securities·····························································
Tangible fixed assets ··························································
Intangible fixed assets ························································
Agency accounts receivable ·················································
Reinsurance accounts receivable ··········································
Other assets ·····································································
Accounts receivable ·······················································
Other ··········································································
Total assets·························································
LIABILITIESPolicy reserves and other ····················································
Reserves for outstanding claims ·······································
Policy reserves ·····························································
Agency accounts payable ····················································
Reinsurance accounts payable ·············································
Other liabilities···································································
Reserves under the special laws ···········································
Reserve for price fluctuations ···········································
Deferred tax liabilities ·························································
Total liabilities ······················································NET ASSETS
Capital stock ·····································································
Capital surplus ··································································
Retained earnings ······························································
Treasury shares ·································································

3,761

4,092

3,999

2,999

5,460

5,221

47,42547,583

8,946

8,619

1,469

1,431

24,042

24,331

492

577

98

597

12,375

12,025

97

81

1,293

1,291

7

8

3,881

4,522

1,892

2,096

1,585

1,758

306

338

67,82067,89743,542

49,155984

1,246

42,55847,908

48

71

404

476

1,379

1,206

102

121

102

121

271

－

45,74951,031

21,655

21,676

21,655

21,676(21,936)(25,691)(0)(0)

Shareholders’ equity ·············································

21,373

17,661

Valuation difference on available-for-sale securities ··················

697

(795)

Valuation and translation adjustments ····································

697

(795)

Total net assets····················································

22,071

16,866

Total liabilities and net assets ·································

67,82067,897

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

4NEWS RELEASE(2) Statements of Operations

Ordinary income ························································
Insurance premiums and other ·································
Premiums income ·············································
Reinsurance income ··········································
Investment income ················································
Interest, dividends and other income ·····················
Gains on money held in trust ·······························
Gain on sales of securities ··································
Other ordinary income ············································
Other ······························································
Ordinary expenses ·····················································
Insurance claims and other······································
Insurance claims ···············································
Benefits···························································
Other refunds ···················································
Reinsurance commissions ··································
Provision for policy reserves and other ······················
Provision for reserves for outstanding claims ··········
Provision for policy reserves ································
Investment expenses ·············································
Interest expenses ··············································
Loss on sales of securities ··································
Foreign exchange losses ····································
Other investment expenses ·································
Operating expenses ···············································
Other ordinary expenses ·········································
Ordinary profit (loss) ···················································
Extraordinary losses ···················································
Loss on disposal of non-current assets ······················
Provision of reserves under the special laws ···············
Provision of reserve for price fluctuations ···············
Income (loss) before income taxes ································
Income taxes-current ··················································
Income taxes ····························································Net income (loss) ·······················································(In millions of yen)
Nine months ended Dec. 31
2021
2022
19,30022,24918,72021,59914,633
16,627
4,087
4,972
519
588
287
354
53
114
178
119
59
61
59
61
21,24825,980
6,174
9,137
1,810
2,048
1,103
2,523
1
0
3,259
4,563
5,071
5,612
157
261
4,913
5,350
4
93
0
2
－
91
0
－
4
0
8,724
9,924
1,273
1,213
(1,948)(3,731)
58
21
39
2
18
18
18
18
(2,006)(3,752)222
2(2,009)(3,755)

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

5NEWS RELEASE(3) Statements of Cash Flows(In millions of yen)
Nine months ended Dec. 31
2021
2022
Cash flows from operating activities
Income (loss) before income taxes ·····························
Depreciation and amortization ···································
Increase (decrease) in reserves for outstanding claims ··Increase (decrease) in policy reserves ························
Increase (decrease) in reserve for price fluctuations ······
Interest, dividends and other income ··························
Loss (gain) related to securities ·································
Interest expenses ···················································
Loss (gain) property plant and equipment ····················
Share issuance costs ···············································
Decrease (increase) in agency accounts receivable·······
Decrease (increase) in reinsurance accounts receivable ··Decrease (increase) in other assets <excluding assets for investing and financing activities> ····
Increase (decrease) in agency accounts payable ·············
Increase (decrease) in reinsurance accounts payable ····
Increase (decrease) in other liabilities <excluding liabilities for investing and financing activities> ··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 money held in trust·································
Proceeds from decrease in money held in trust·············
Purchase of securities ·············································
Proceeds from sales and redemption of securities ············
Total of net cash provided by (used in) investment transactions ·Total of net cash provided by (used in) operating activities and investment transactions ·Purchase of tangible fixed assets ·······························
Purchase of intangible fixed assets ····························Net cash provided by (used in) investing activities ····Cash flows from financing activities
Proceeds from issuance of common stock ···················
Proceeds from issuance of stock resulting from exercise of subscription rights to shares ··Purchase of treasury shares ·····································
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 ·············Cash and cash equivalents, end of the period·····················(2,006)
298
157
4,913
18
(287)
(178)
1
2
130
1
(992)
(166)
(21)
78
(174)
15
1,789
405
(0)
(12)
2,181

(3,752)
293
261
5,350
18
(354)
(28)
2
0
－
(0)
(641)
(199)
23
71
(171)
(78)
795
445
(2)
(7)
1,230

－
500
(8,059)1,461(6,098)(3,916)(33)(405)(6,537)(0)240(7,096)
5,235(1,621)
(390)
(1)
(274)
(1,897)

9,641
31
(0)
(3)
9,669
5,313
3,059
8,373

－
－
(0)
(2)
(2)
(669)
7,761
7,092

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

6

NEWS RELEASE
About LIFENET 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.

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7