NEWS RELEASE
February 10, 2022
Ryosuke Mori, President
LIFENET INSURANCE COMPANY(Securities Code: 7157, TSE Mothers)

Financial Results for 3Q of Fiscal 2021 Ending March 31, 2022
Annualized premium of in-force business of 20,862 million yen,up 11.5% from March 31, 2021
TOKYO, February 10, 2022 - LIFENET INSURANCE COMPANY (TSE Mothers 7157,
President Ryosuke Mori, URL: https://ir.lifenet-seimei.co.jp/en/) discloses financial results for thethird quarter of fiscal 2021 ending March 31, 2022.
1．Overview of the financial results for 3Q of fiscal 2021
(1) Business results
Condition of policies-in-force
Annualized premium*1 of new business in 3Q ended December 31, 2021 was 933 million yen(99.9% of 3Q of fiscal 2020). The number of new business was 22,506 (101.5% of 3Q of fiscal
2020). Annualized premium of new business for the nine months ended December 31, 2021
was 3,107 million yen (100.5% of the nine months ended December 31, 2020). The number of
new business for the nine months ended December 31, 2021 was 76,226 (103.5% of the ninemonths ended December 31, 2020).
Annualized premium of policies-in-force as of the end of 3Q of fiscal 2021 stands at 20,862
million yen (111.5% of March 31, 2021). The number of policies-in-force resulted in a total of491,611 (111.7% of March 31, 2021). Surrender and lapse ratio*2 for the nine months ended
December 31, 2021 was 6.6% (5.6% for the nine months ended December 31, 2020). Lifenet
has extended grace period for insurance premium payment as one of the special measures in
the COVID-19 pandemic. Surrender and lapse ratio for the nine months ended December 31,
2021 includes the impact of extended policies that were recorded as lapsed policies in a lumpsum.
*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, 2021 increased to
18,720 million yen (127.4% of the nine months ended December 31, 2020) due to an increasein premium income by growth of in-force business, and effect from modified co-insurance.
Investment income was 519 million yen (171.5% of the nine months ended December 31, 2020)
mainly due to an increase in gain on sales of securities. Other ordinary income was 59 million
yen. As a result, ordinary income for the nine months ended December 31, 2021 amounted to
19,300 million yen (127.4% of the nine months ended December 31, 2020).
Insurance claims and other was 6,174 million yen (146.8% of the nine months ended
December 31, 2020) mainly due to an increase in reinsurance commissions from modified coinsurance. The ratio of insurance payment amounts to insurance premiums was 19.9% for thenine months ended December 31, 2021, compared with 18.6% for the nine months ended
December 31, 2020. Provision for policy reserves and other came to 5,071 million yen (110.3%of the nine months ended December 31, 2020). The ratio of provision for policy reserves toinsurance premiums was 33.6% for the nine months ended December 31, 2021, compared with37.1% for the nine months ended December 31, 2020. Operating expenses amounted to 8,724
million yen (124.6% of the nine months ended December 31, 2020) mainly due to the
Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE
investment in our marketing spend including advertising. The components of operating
expenses were 5,862 million yen in marketing expenses (127.0% of the nine months ended
December 31, 2020) , 953 million yen in customer service expenses (125.8% of the ninemonths ended December 31, 2020), and 1,907 million yen in system and other expenses(117.4% of the nine months ended December 31, 2020). Other ordinary expenses was 1,273
million yen (120.5% of the nine months ended December 31, 2020) . Consequently, ordinary
expenses for the nine months ended December 31, 2021 totaled 21,248 million yen (126.0% of
the nine months ended December 31, 2020).
As a result, ordinary profit totaled 1,948 million yen loss for the nine months ended December
31, 2021, compared with 1,714 million yen loss for the nine months ended December 31, 2020.
Net income was 2,009 million yen loss, compared with 1,731 million yen loss for the ninemonths ended December 31, 2020.
In addition, fundamental profit, which is an indicator for the profitability of life insurancecompanies, amounted to 1,964 million yen loss, compared with 1,568 million yen loss for the ninemonths ended December 31, 2020. The components of fundamental profit were 2,652 million yen
in mortality margin, 4,662 million yen loss in expense margin and 45 million yen in interest margin.
We are participating in reinsurance transactions from fiscal 2019 by modified co-insurance onpart of new 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, 2021, the modified co-insurance resulted inraising ordinary income by 3,577 million yen (1,892 million yen of the nine months ended
December 31, 2020) , ordinary profit by 1,037 million yen (555 million yen of the nine months
ended December 31, 2020), and net income by 1,037 million yen (555 million yen of the ninemonths ended December 31, 2020).
(2) Financial condition
Assets, liabilities and net assets
Total assets as of December 31, 2021 amounted to 67,781 million yen (54,501 million yen asof March 31, 2021). The major account balance was 47,026 million yen in securities mainly
consisting of government bonds and corporate bonds with high credit ratings. Reinsurance
accounts receivable was 3,561 million yen including 3,406 million yen of the balance of
unamortized ceding commission for modified co-insurance.
Liabilities amounted to 43,768 million yen as of December 31, 2021 (38,694 million yen as ofMarch 31, 2021), owing to an increase in policy reserves. The major account balances were
40,715 million yen in policy reserves and 995 million yen in reserves for outstanding claims.
Net assets amounted to 24,012 million yen as of December 31, 2021 (15,806 million yen asof March 31, 2021) mainly due to raising new capital through overseas public offering despite
the recording of net loss for the nine months ended December 31, 2021. It includes the effect ofraising 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 is amortized by
the profit generated from the reinsured business over following fiscal years. This leads to a
Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE
decrease in net assets accordingly.
The solvency margin ratio as of December 31, 2021 was 3,258.7% (2,647.1% as of March
31, 2021), which indicated that an adequate level of payment capacity was maintained.
Cash flows
For the nine months ended December 31, 2021, net cash provided by operating activities
amounted to 2,181 million yen (2,417 million yen provided for the nine months ended December
31, 2020) mainly because of an increase in insurance premium. Net cash used by investing
activities amounted to 6,537 million yen (8,447 million yen used for the nine months ended
December 31, 2020) mainly due to acquisition of securities. Net cash provided by financing
activities amounted to 9,669 million yen (8,868 million yen provided for the nine months ended
December 31, 2020) mainly due to issuance of new shares through overseas public offering.
Based on these activities described above, cash and cash equivalents as of December 31,
2021 totaled 8,373 million yen (3,059 million yen as of March 31, 2021).
(3) Business forecasts
The business forecasts for fiscal 2021 which was announced on November 10, 2021 wasrevised as shown below.
(In millions of yen)
Ordinary income
Ordinary profit (loss)
Net income (loss)
Previous forecasts(November 10, 2021)
Revised forecasts(February 10, 2022)(Reference)
Business results

26,100(3,600)(3,700)26,100(3,400)(3,500)20,789(3,089)(3,114)for fiscal 2020
Lifenet recorded the gain on sales of securities in 3Q ended December 31, 2021 andinsurance claim payment forecast is now expected to be lower than the estimate. These led to
the revision of the business forecasts for fiscal 2021 ending March 31, 2022.
In terms of policy reserves, new business from fiscal 2018 onward has been transferred from
5-year Zillmer’s method to standard policy reserves. The difference in policy reserves has beenplanned to be resolved over five fiscal years, from fiscal 2018 to 2022. From the perspective ofComprehensive Guidelines for Supervision for Insurance Companies, Lifenet will accumulate
the difference in policy reserves in fiscal 2021 which was planned to be enhanced in fiscal 2022,
subject to regulatory approval from Financial Services Agency. Thus, Lifenet will complete thetransition to standard policy reserves in fiscal 2021 ending March 31, 2022. The revision of thebusiness forecasts includes this impact of recording around 150 million yen as provision forpolicy reserves.
The business forecasts for fiscal 2021 includes the impact of reinsurance transactions bymodified co-insurance. We expect the impact on fiscal 2021 revised forecasts to increase
ordinary income by around 4,900 million yen (5,000 million yen as of previous forecast),
ordinary profit by around 1,300 million yen (1,400 million yen as of previous forecast), and net
income by around 1,300 million yen (1,400 million yen as of previous forecast). This impact
includes the effects of amortization of reinsurance accounts receivable generated fromreinsured business in past years.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE
Subsequently, the forecasts for annualized premium of policies-in-force and of new businesswere revised as shown below. Lifenet continuously aims to achieve double-digit growth inannualized premium of policies-in-force. In terms of annualized premiums of new business, thegrowth of new business performance has not progressed as expected in the most recent
environment, while annualized premium of new business for the nine months ended December
31, 2021 was record high.
(Reference) Annualized premium

Previous forecasts(November 10, 2021)
Revised forecasts(February 10, 2022)(Reference)
Business results
for fiscal 2020

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

21,9004,500

21,4004,100

18,713

4,197

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.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

4NEWS RELEASE
2. Non-consolidated Financial Statements(1) Balance Sheets(In millions of yen)March 31,
Dec. 31,
2021
2021
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·························································

2,059
999
5,895
40,0079,004
1,482
21,301
397
0
7,821
95
1,252
9
2,569
1,612
1,362
250
54,501

4,373
3,999
5,590
47,026
8,997
1,481
24,233545
199
11,569
108
1,302
7
3,561
1,810
1,558
251
67,781

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 ·································································

36,639837
35,801
69
301
1,234
76
76
373
38,694

41,710995
40,715
48
379
1,017
95
95
516
43,76816,731
16,731(18,616)(0)

21,65521,655(20,626)(0)

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

14,846

22,683

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

960

1,329

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

960

1,329

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

15,80624,012

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

54,501

67,781

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

5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 ············································
Reversal of reserves for outstanding claims ············
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 ··············································
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
2020
2021
15,144
19,30014,694
18,72012,406
14,633
2,287
4,087
303
519
205
287
94
53
2
178
146
59
94
－
52
59
16,85821,248
4,205
6,174
1,479
1,810
826
1,103
0
1
1,899
3,259
4,597
5,071
－
157
4,597
4,913
0
4
0
0
0
0
－
4
6,999
8,724
1,056
1,273
(1,714)(1,948)
14
58
－
39
14
18
14
18
(1,728)(2,006)2
2
2
2(1,731)(2,009)Copyright© LIFENET INSURANCE COMPANY All rights reserved.

6

NEWS RELEASE(3) Statements of Cash Flows

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 ····················(In millions of yen)
Nine months ended Dec. 31
2020
2021
(1,728)
231
(94)
4,597
14
(205)
(2)
0
－

(2,006)
298
157
4,913
18
(287)
(178)
1
2

Share issuance costs ·················································

137

130

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

1
(571)
(175)
17
60
(35)
(63)
2,183
230
(0)
3
2,417

1
(992)
(166)
(21)
78
(174)
15
1,789
405
(0)
(12)
2,181

(1,500)－(7,868)1,310(8,057)(5,640)(23)(365)(8,447)－500(8,059)1,461(6,098)(3,916)(33)(405)(6,537)

8,868
4
(0)
(3)
8,868
2,839
1,677
4,516

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

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·····················

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

7