Securities Code: 7157
TSE Mothers

Presentation
Material for Investorsfor 2Qof Fiscal 2019

November 12, 2019

LIFENET is...

Comprehensible
Cost-Competitive
Convenient◼ Remembering the original purpose oflife insurance – mutual support◼ Helping our customers embrace life more fully
1

Table of Contents

1. Results for 2Q of Fiscal 2019
2. Future Initiatives

2

Overview of 2Q for FY2019
Annualized premium1 ofpolicies-in-force

Annualized premium1 of
new businessmillion yen

million yen

14,2001,616(108.5% vs end of FY2018)(Y-on-Y 133.7%)

Adjusted profit2

EEV3 (European Embedded Value)

1,972

million yen(includes 743 million yen impact
of modified co-insurance)

66,426

million yen(Adjusted incremental EV4 1,365 million yen)

Main Initiatives◼

Contact Center and Website receive top ratings5◼

LGBT initiatives win Gold Rating6◼

Expanded Lifenet Insurance app to Androids

1.
2.
3.
4.
5.
6.

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 12 months.
Ordinary profit excluding marketing expenses, see page 12 and 34 for details.
EEV as of September 30, 2019 is calculated by updating the operating assumptions used for June 30, 2019, and has not been reviewed by third-party specialists.
Adjusted incremental EV consisted of components accurately reflecting our business growth for fiscal 2019. See page 35 for details.
2019 HDI Benchmarking (Life Insurance Industry) hosted by HDI-JapanPRIDE Index 2019 for LGBT initiatives hosted by work with Pride3

Annualized Premium /Number of Policies-in-Force: Annualized premium of policies-in-force (JPY bn): Number of policies-in-force

14.2

11.9
10.4
9.0

219,4719.6

231,538

334,528◼ Year-on-year
annualized
premium
118.5%,
number ofpolicies-in-force
118.1%

283,207248,635

2015/09 ’16/09 ’17/09 ’18/09 ’19/09◼ Accelerated
growth trend(YY/MM)4

Breakdown of Policies-in-Force’19/03’19/09Component
ratio

Number of policies-in-force

308,854334,528100%- Term Life1

150,808

161,943

48%- Whole-life Medical1

85,96892,29928%- Term Medical Care1

9,493

9,269

3%

- Long-term Disability1

49,21451,78515%- Cancer1

13,371

19,2326%

2,289,567

2,410,624

197,669

213,675

Sum insured of policies-in-force2(JPY mn)

Number of policyholders’18/1H(Reference) Surrender and lapse ratio3

6.2％’19/1H

7.3%

1. Term Life insurance: Kazoku and au Term Insurance, Whole-life Medical insurance: Jibun, New Jibun, New Jibun for Women, au Medical Insurance and au Medical
Insurance for Women, Term Medical Care insurance: Jibun Plus, Long-term Disability insurance: Hataraku-Hito, Hataraku-Hito 2 and au Long-term Disability
Insurance, Cancer insurance: Double Yell and au Cancer insurance
2. Sum insured of polices-in-force are the sum of death coverage, and do not include third-sector insurance.
3. 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 ofpolicies-in-force.

5

Annualized Premium /Number of New Business: Annualized premium of new business (1H of fiscal year, JPY mn): Number of new business (Fiscal year): Number of new business (1H of fiscal year)

1,616◼ Steady growthcontinues,
heading towards
historical high1,209

64,435730

37,912635
548

39,17529,741

25,15028,048
11,403

13,61916,442

2015

’16

’17

’18 ’19/1H (fiscal year)◼ Year-on-year
annualized
premium
133.7%,
number of new
business 135.2%
6

Number of New Business (Half)◼ Achieved new half-year record high:Number of new business (Half)

37,912

1H

2H

FY20081H

2H

FY20091H

2H

FY2010

1H

2H

FY2011

1H

2H

FY2012

1H

2H

FY2013

1H

2H

FY2014

1H

2H

FY20151H

2H

FY20161H

2H

FY20171H

2H

1H

FY2018 FY2019

7

Marketing Efficiency◼ Expecting around 70 thousand yen levelfor fiscal 2019
: Marketing expenses per new business (JPY thousand): Marketing expenses / Annualized premium of new business1
Result of changing commission payment
scheme and recorded agent commissions inlump as marketing expenses

67
61

65

84

1.9

79 thousand JPY
when excluding lump recordingof agent commissions

1.8

51
1.5

1.5

when excluding lump recordingof agent commissions

1.3
1.0

Marketingexpenses

2015

’16

’17

’18

’19/1H (fiscal year)

1,302

1,822

2,627

4,216

3,186 (JPY mn)

1.

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

8

Operating Expenses Ratio: Insurance premiums (JPY mn): Operating expenses excl. marketing expenses (JPY mn): Operating expenses ratio¹ (%)

11,845
10,421
9,628
9,007

21.2%
23.1 %

21.5 %

1,937

2015
1.

2,225

22.2 %

2,315

22.8 %

6,697

2,699
1,417

’16

’17

’18

◼ Improving,
forecasting to beroughly 22% range
for FY19◼ Strive for further
business expansion
and operational
efficiency
in mid- to long- term

’19/1H (fiscal year)

Operating expenses ratio is calculated by dividing operating expenses excluding marketing expenses by insurance premium.

9

Profit Structure under
Current Statutory Accounting◼ Time lag is caused between the recognition of
costs and revenue as marketing expenses isrecognized at the time of acquisition, and revenue
is collected gradually over a long period
Insurance policy profit structure
Revenue collected
over long period

Accounting
profit/loss(Initial
fiscal
初年度
year)

Revenue

Total profit/loss

Year 22年目

Year 33年目

Year 44年目…

Year X
X年目

Premium

ExpenseMarketingexpenses1.

Heavy initial cost

Costs for policy management, payment of insurance claims and benefit claims, etc.

: Premiums: Operating expenses1 excluding
marketing expenses: Marketing expenses

10Key Business Indicators ofCorporate Value◼ Disclosure of two key management
indicators during current period of growth

Adjusted profit(Ordinary profit excluding marketing expenses)

Indicator of profit level excluding marketing
expenses as there is a time lag between therecognition of revenue and marketing expenses
as acquisition cost

EEV(European Embedded Value1)

Indicator of long-term profitability of insurancecompanies
1.

EEV is one calculation methodologies of EV. The EEV Principles and related guidance were published in May 2004 by the CFO Forum, an organization comprising
the chief financial officers of Europe's leading life insurers, in order to improve consistency and transparency in EV reporting.

11

Adjusted Profit◼ Increase in adjusted profit due to impact ofmodified co-insurance
Adjusted profit

Ordinary profit/loss1(Ordinary profit1 excluding marketing expenses):Fiscal year

584

(JPY mn)(JPY mn):1H of fiscal year

2,429

2,497

88
1,887

1,972

1,910

(197)
743

Impact ofmodifiedcoinsurance(1,214)(1,719)

2015

’16

’17

’18

’19/1H

967

989

1,117

2015

’16

’17

1,345

1,228

’18

’19/1H(fiscal year)
1.

The ordinary profit (loss) before amortization of deferred assets under Article 113 of the Insurance Business Act in fiscal 2015 and fiscal 2016

(fiscal year)

12Structure of Embedded ValueEV

Adjusted
net worth

Value of in-force
business(Net assets at end of period+ adjustments)

Profit/loss for thecurrent fiscal year isreflected in end-ofperiod net assets

Revenue

Revenue
ExpenseExpenseProfit/loss for
current fiscal year

Unrealized future profits/losses on policies-in-force
at the end of current fiscal year

13

EEV （European Embedded Value）◼ Characteristics of Lifenet’s EEV are as
follows:

Strong growth• Maintaining increase in EEV since company
became public in March 2012
• Steadily growing even in a low interest
rate environment

Resilience to interest rate changes• Limited sensitivity to interest rate andstock fluctuations
14

Strong EEV1 growth◼ CAGR of EEV is 19%2 and value of
in-force business is 36% since IPO
66,426
63,378(JPY mn)
Value of in-force business
Adjusted net worth
48,51852,413

14,86014,012’19/03’19/0918,547
5,122
13,425

2012/03 ’13/03
1.

2.

’14/03’15/03’16/03’17/03’18/03(YY/MM)

Lifenet’s EEV is calculated following the EEV Principles and Guidance and in terms of allowance for risk, MCEV Principles (The European Insurance CFO Forum
Market Consistent Embedded Value Principles©) is referred. From fiscal 2016 onward, a predetermined ultimate forward rate has been used to extrapolate the levelof ultra-long-term interest rates past the last liquid data point. This method of extrapolation has also been used to restate EEV as of March 31, 2016. EEV as of
September 30, 2019 is calculated by updating the operating assumptions used for June 30, 2019, and has not been reviewed by third-party specialists.
The calculation includes 3,040 million yen in proceeds from a third-party allotment in May 2015.

15

Structure Breakdown of EEV1
◼ Increase due to growth of new business,
improvement in operating expense ratio andassumption changes of renewal rate

66,426(JPY mn)

Adjusted
incremental EV
total

63,378’19/03
1.
2.

1,365

Value ofnew business

911

Expected
existing
business
contribution

Adjustments
Economic
to the values2
variances
as ofAssumption and assumption Sep. 30, ‘19changeschanges

1,451

188

41

million yen
Operatingexperiencevariances

(13)

467

’19/09 (YY/MM)

Lifenet’s EEV is calculated following the EEV Principles and Guidance and in terms of allowance for risk, MCEV Principles (The European Insurance CFO Forum
Market Consistent Embedded Value Principles©) is referred. EEV as of September 30, 2019 is calculated by updating the operating assumptions used for June 30,
2019, and has not been reviewed by third-party specialists.
Item for change in capital16

EV Resilience to Financial Changes◼ Limited sensitivity to interest rates andstock prices
Sep. 2019
End

Reference: March 2019 End1

Lifenetライフネット生命

Lifenetライフネット生命

Company
A社 A

Company
B
B社

Company
C社 C

Company
D社 D

13%
8%

1.5%

-1.7%

-0.6%

4%

1.9%

-2.0%

-0.7%

-1%

-2%
-6%

金利0.5%上昇: 0.5%
interest rate increase: 0.5%
interest rate decrease
金利0.5%下落: 10% decrease in equity and株式・不動産価値等
realestate value and 10%下落
other

3%

-5%
-8%
-10%

-7%

-17%

1. Prepared by Lifenet based on disclosed information of domestic public life insurance companies

17Financial Condition’19/03’19/0938,24739,707

1,192

1,074

999

799

3,114

3,336

30,98931,618Government bonds

8,071

8,104

Municipal bonds

1,394

1,405

Corporate bonds

16,763

17,632363

359

Foreign securities

45

26

Other securities2

4,352

4,088

26,47428,93925,256

27,593

Total net assets

11,773

10,768

Solvency margin ratio

2,085％

2,132％

1.

12.0

11.9

The solvency margin ratio is a key benchmark for industry
regulators. It measures a life insurance company's ability to pay
out claims when unforeseen events occur.

2.

Investment trust including foreign bonds and others(JPY mn)(YY/MM)

Total assets
Cash and deposits
Monetary claims bought
Money held in trust

Securities

StocksTotal liabilities
Policy reserves and other

Modified duration (year)◼ Maintained
sufficient financial
stability as
indicated bysolvency margin
ratio118

Main Initiatives◼ Contact center and website awarded top
ratings
Contact Center and Website awarded top rankings of three stars in HDI
Benchmarking for 7th time, the highest number of times for a company toreceive three-star ratings in the life insurance industry1.

Phone Support(Contact Center)

Web Support(Website)◼ LGBT initiatives win Gold Rating for 4th
consecutive year
LGBT initiatives receive Gold Ratings for 4th consecutive year in PRIDE Index
2019.

◼ Expanded Lifenet app to Androids
Enabled more customers to use biometric authentication to login Lifenet app andexperience various procedures possible via smartphones for convenience.
1.

Awarded in the 2019 HDI Benchmarking (Life Insurance Industry) hosted by HDI-Japan19

Table of Contents

1. Results for 2Q of Fiscal 2019
2. Future Initiatives

20

New Whole-life Medical Product◼ Expanded lifetime coverage based on
customer needs
Whole-life Medical
Jibun 3Whole-life Medical
Jibun 3 for Women• Expanded hospitalization benefit for women that pays
5 days for hospitalization of up to 5 days
• New benefits for out-patient surgeries and advanced
medical care21

Change in Largest Major Shareholder◼ Organizational changes within KDDI Group lead tochange in largest major shareholder to
au Financial Holdings Corporation (“auFH”)

Shares: 24.99％1
Financial Holdings Corporation◼ Lifenet, auFH and KDDI will aim to provide new
products and services in future
1. As of September 30, 201922

New Business Partnership◼ Aim to innovate customer experience and enhancepromotion capabilities with insurtech businesscompany justInCase

To design a product or service exploiting
product and sales channels throughbusiness collaboration
23

Number of New Business (Monthly)◼ Exceeding 7,000 new policies in
October for the first time
7,067

:Number of new business

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
FY20171.

October 2019 results based on monthly disclosure

FY2018FY201924

Business Forecast FY2019◼ Promote further business acquisition
following strong business performance (JPY mn)【Revised】
Business forecast
Including
impactof modified
co-insurance【Original】
Business forecast
Including
impactof modified
co-insurance(Reference)
FY2018Results

Ordinary income

16,5002,000

16,2002,000

12,560Ordinary profit(loss)(2,500)1,400(2,000)1,400(1,719)Net income(loss)(2,500)1,400(2,000)1,400(1,735)(Reference)

Annualized
premium of
new business1
1.

3,300

3,000

2,773

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 inmonthly installments; we calculate annualized premium as multiplying the monthly premium by 12 months.

25

MissionBe the leading company driving the growthof the online life insurance market

Management goal

Priority
areas

Help our customers embrace life more fully
by offering comprehensible, cost-competitiveand convenient products and services

VisionManagement Policy• Innovation of customer experience

Enhancing and evolving the quality of all services with digital technology• Enhancement of promotion capabilities

Generating massive customer traffic by active promotion and expansion of
agent sales and white label business

Aim to achieve EEV (European Embedded
Value) of 100 billion yen by business growth
in a mid-term
26

LIFENET Manifesto
Comprehensible, Cost-Competitive, ConvenientI.

Our Guiding Principles(1) Creating the life insurance of the future without losing sight of
its original premise: “an ounce of prevention is worth more thana pound of cure.”(2) Listening to what our customers are saying. Recognizing theirneeds and acting accordingly. Allowing our actions to be borneout of their voices and needs.
(3) Delivering the caliber of products and services that we would
feel confident recommending to our own friends and families.
(4) Being a “straight-shooter”. Committing to transparency.
Communicating openly about our management team, ourproducts, and our employees.
(5) Embracing diversity and dialogue to keep us abreast of changing
needs and preferences. Delivering peace of mind that we’ll bearound in 100 years.
(6) Acting in good faith means always taking the high road when it
comes to compliance and ethics.

III.

Making Life Insurance Accessible Again - Affordable(1) Giving the customer what he/she needs. No more, no less at afair price.
(2) Staying vigilant as to how we can provide our products morecost-efficiently.
(3) Always putting ourselves in our customers’ shoes in thinking
about how to minimize their premiums.

II.

Making Life Insurance Accessible Again - Headache-free(1) Helping the customers help themselves. By making ourmaterials easy to understand, customers can determine which
coverage is truly the best fit.
(2) Turning “clauses” in the insurance contract into succinct points
that your grandmother could grasp.
(3) Making all touch points headache-free. Beyond the application
process, ensuring the claims and billing processes are also easy
to understand.

IV.

Making Life Insurance Accessible Again - Convenient(1) Thinking about our customers’ convenience from every angle
and every touch point along the way.
(2) Forming alliances with like-minded partners who can add value
above and beyond our products and services to our customers.
(3) Providing health and wellness tips beyond the framework of life
insurance to create value in our policyholders’ lives.
(4) Creating a precedent for future generations as to what life
insurance is (and should be) all about.

We wish to be a company that helps our customers embrace life more fully.
In order to live out that vision, we continue to challenge ourselves.

27

All information on this document that is nothistorical fact constitutes forward-looking
information and is based on assumptions andforecasts available to the company at the time of
preparation. The company cannot guarantee theaccuracy of these assumptions and forecasts.
Earnings projections and other information on thismay differ materially from actual performance due
to various risks and uncertainties.
This is a translation of the original Japanese
document, prepared and provided solely forreaders' convenience. In case of any discrepancy or
dispute, the Japanese document prevails.

https://ir.lifenet-seimei.co.jp/en/
Subscribe to our "IR email service" to receive
news releases and website updates via email.

Appendix

Condensed Statements of Operation/ Fundamental Profit (1H)
2018/1H

2019/1H

ChangeInsurance premiums and other

5,847

1,906

Other

250
6,097

7,754
199
7,953

Insurance claims and
other

1,251

1,688

436

Increased due to growth in in-force policies. Percentage of
insurance claims and benefit claims to insurance premiums is
19.2%.

Insurance claims

710

832

122

Increased from 48 cases in 1H of FY18 to 58 in 1H of FY19.

Benefit claims

318

455

137

Provision for policy
reserves and other

1,885

2,337

452

Ordinary expenses

2,997
1,721
367
908
339
6,473

1,606
1,465
57
84
198
2,694

Ordinary profit (loss)

(376)

4,604
3,186
424
993
537
9,167
(1,214)

Increased from 3,331 cases in 1H of FY18 to 4,055 in 1H of
FY19.
Increased by transferring to standard policy reserves.
Percentage of provision for policy reserves (2,271 million yen) toinsurance premiums is 33.9%.

8

8

(0)

Net income (loss)(384)(1,223)(838)

Mortality margin

1,442

1,328

(114)

Expense margin (loss)(1,756)(2,580)(824)Interest margin (loss)

(6)
(319)

20
(1,232)

26(912)(JPY mn)

Condensed statements of operation

Ordinary income

Operating expenses
Marketing expenses
Customer service
System and other
Other

Fundamental
profitExtraordinary losses andincome taxes

Fundamental profit

Note
Due to increase in in-force policies business and utilization ofmodified co-insurance(51)
1,855 Includes 852M increase for utilization of modified co-insurance(838)

Increase in marketing expenses, mainly advertising expenses

Includes profit of 743M for utilization of modified co-insurance.

Includes profit of 743M for utilization of modified co-insurance.

Increase in marketing expenses, mainly advertising expenses.
Includes 768M expense margin for utilization of modified coinsurance.

30

EV Sensitivity Analysis1
Impacts of changes in assumptions (sensitivities)(JPY mn)

EEV and new business value as of September 30, 2019
Sensitivity 1a: 1.0% increase in risk-free rate
Sensitivity 1b: 1.0% decrease in risk-free rate
Sensitivity 1c: 0.5% increase in risk-free rate
Sensitivity 1d: 0.5% decrease in risk-free rate
Sensitivity 1e: Interest rates based on JGB yields
Sensitivity 2: 10% decrease in equity and real estate value and otherSensitivity 3: 10% decrease in operating expenses
Sensitivity 4: 10% decrease in lapse rate
Sensitivity 5: 5% decrease in claim incidence rates for life business
Sensitivity 6: Change the required capital to the statutory minimum
1.

Change in EEV66,426(2,354)
1,877(1,139)
1,023
632
(413)
2,853
29
3,878
48

Change in
VoNB

911
77
(201)
50
(81)
62
－
300
(6)
255
4

For each sensitivity, only one specific assumption is changed and other assumptions remain unchanged. It should be noted that the effect of the change of morethan one assumption at a time is likely to be different from the sum of sensitivities carried out separately. As Japanese policy reserves are calculated in accordancewith the IBR, the sensitivities carried out do not affect the reserves at the valuation date. The sensitivity on the value of new business excludes the impact on theadjusted net worth. EEV as of September 30, 2019 is calculated by updating the operating assumptions used for June 30, 2019, and has not been reviewed by thirdparty specialists.

31

Three Surplus Factors ofFundamental Profit
2Q of FY2019

Ordinary income(JPY mn)

Profit analysis

Statements of operations
Insurance premiums and other 7,754

Premiums income 6,697

Net premiums

Expense loading

Reinsurance income 1,056

ReinsuranceincomeOther reinsuranceincomeInterest anddividends

Investment income 174

Gains on salesof securities

Other ordinary
incomeOther ordinary income 24

Ordinary expenses

Insurance claims and other 1,688

Insurance claims and benefits
1,287
Reinsurance commissions
400

Insurance claims
and benefits
Reinsurance
commissions

Other reinsurance
commissions

Provision for policy
reserves and others 2,337

Change in policy
reserves

Change inpolicy reserves

Interest
expenses

Investment expenses 46
Operating expenses 4,604

Operatingexpenses

Other ordinary expenses
491

Other ordinary
expenses

Income taxes 1

Mortality
margin (loss)

Expensemargin (loss)

Interest
margin (loss)

1,328(2,580)20

Net profit (loss) (1,223)
1. Some items with minimal amounts have been omitted.

Losses on salesof securities

Capital gains(losses)(46)

Ordinary profit (loss)(1,214)Extraordinary profit (loss)(6)

Provision forcontingency
reserves

Projected
interest

Other onetime
gains (losses)
64

Extraordinary profit (loss)(6)
Income taxes 1

Net profit (loss) (1,223)

32

Solvency Margin Ratio Calculation
As of Sep 30, 2019

( R 1 + R 8 ) 2 + ( R 2 + R 3 + R 7 ) 2 + R 4 / 2 (JPY mn)

Solvency margin ratio
2,132.3%=

Total amount of solvency margin<numerator>
19,627

Cash and deposits
1,074

Other liabilities
993

Monetary claims bought

Reserves for outstanding claims

799

Money held in trust
3,336

Contingency reserves 1,616

Excess over the fullZillmerized reserve 6,998
Price fluctuation reserves 49

Securities
31,618Deferred tax liabilities onavailable-for-sale securities

2721

Valuation difference on
securities available-for-sale6991

Total amount of risk/2< the denominator>
1,840/2

Insurance risk R1 1,162
Risk of change in mortality rate (calculated based on value ofpolicies in force)

535

Policy reserves
27,058÷Add liabilities
with strong
capitalcharacteristics
such as pricefluctuation
reserves andcontingency
reserves

Medical insurance risk R8 313
Risk of change in medical incidence rate (hospital admission
rate , etc.)

Assumed interest rate risk R2 3
Risk that the actual investment return will fall below the
expected return used as a basis for calculating policy
reserves[Minimum guarantee risk] R7 －Risk related to products, such as variable annuities withminimum guarantees

Asset management risk R3 969

Tangible fixed assets

86
Intangible fixed assets
706

Other assets
2,084

Capital stock andother assets
9,990

Net assets
10,768[Credit risk] Risk that asset values decline due todeterioration in financial condition of creditees[Price fluctuation risk]Risk of incurring losses due to decline inmarket value of stocks and bonds, etc.

Business management risk R4 73
3% of the total of the amounts of the other 5 risks (in the
Company’s case)

1. 90% of the valuation difference on available-for-sale securities and deferred gains or losses on hedges (pre-tax) (if negative, 100%)
2. Items that do not apply to the Company or for which the amount is minimal have been omitted, except for certain bracketed items.

33

Adjusted Profit
Significance of Adjusted Profit disclosure• As accrual timing of cost and revenue do not match,statutory accounting does not necessarily provide an
accurate picture of profitability of our business• We, therefore, disclose the indicator of profit levelexcluding marketing expenses as there is a time lag
between the recognition of revenue and marketing
expenses as acquisition cost

Ordinary profit excluding marketing expenses

Adjusted profit

34

Adjusted Incremental EV◼ Adjusted Incremental EV accurately

indicates our business growth during acertain period within increase in EEV

Adjusted incremental EV
Defined as constitution of components below:- New business value in the fiscal year
- Expected existing business contribution- Operating experience variances
35

Utilization of Reinsurance(Modified Co-Insurance)◼ Ease pressure of new business costs on P&L◼ Alleviate decrease in capital during growth
Illustration image of change in
profit/loss structure by reinsurance：Revenue

Illustration image of impact ofreinsurance on net assets：Costs ：Effects of reinsurance

Without
Reinsurance

11,773 million yen

With
Reinsurance

With
Reinsurance

Ease pressure of new
business costs
Without
Reinsurance
FY2018End ofMar. 2019Year 1

2

3

4…

Year X

Note: Illustration of P&L structure of reinsuring new business of
single fiscal year, where illustration of impact on net assets ofreinsuring new business for multiple years.

36