NEWS RELEASE
August 14, 2024
Ryosuke Mori, President
LIFENET INSURANCE COMPANY(Securities Code: 7157, TSE Growth)

Consolidated Financial Results for 1Q of Fiscal 2024
Ending March 31, 2025 (IFRS)
Comprehensive Equity as new management indicator was 161,022 million yen
TOKYO, August 14, 2024 - LIFENET INSURANCE COMPANY (TSE Growth 7157, President
Ryosuke Mori, URL: https://ir.lifenet-seimei.co.jp/en/) discloses the consolidated financial results
for the first quarter of fiscal 2024 ending March 31, 2025.
1．Overview of the financial results for 1Q of fiscal 2024 ended June 30, 2024
(1) Business results
Condition of policies-in-force
The Lifenet Insurance Group (the “Group”) has started group credit life insurance (“GCL”)
business since July 2023 with the aim of expanding new opportunity for profit growth.
Annualized premium*1 of policies-in-force for individual life insurance and GCL combined as ofthe end of 1Q of fiscal 2024 stands at 29,507 million yen (102.6% of March 31, 2024).
Annualized premium of policies-in-force for individual life insurance and GCL was 25,772 million
yen (101.4% of March 31, 2024) and 3,735 million yen (112.3% of March 31, 2024),
respectively.
The business performance of individual life insurance is as follows. The number of policies-inforce resulted in a total of 609,888 (101.5% of March 31, 2024). Annualized premium of new
business for 1Q of fiscal 2024 was 734 million yen (98.2% of 1Q of fiscal 2023) and the numberof new business was 18,634 (100.9% of 1Q of fiscal 2023). Surrender and lapse ratio*2 for 1Q of
fiscal 2024 was 6.1% (6.8% of 1Q of fiscal 2023).
*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. Annualized premium of policies-in-force for GCL as of the end of 1Q of fiscal 2024 is calculated applying
premium rate as of June 2024.
*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.

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NEWS RELEASE
Results of operations(In millions of yen)
1Q of fiscal 2023

1Q of fiscal 2024

ChangeInsurance revenue

5,500

6,776

1,276

Insurance service results

2,274

2,340

66

Financial results*3

367

338

(29)

Other results*4

(120)

(57)

62

Net income (loss) before
income taxes

2,521

2,621

99

Net income (loss) attributableto owners of the Company

1,765

1,887

121

Insurance revenue for 1Q of fiscal 2024 increased to 6,776 million yen (123.2% of 1Q of fiscal
2023). Insurance revenue for individual life insurance and GCL was 5,906 million yen and 870
million yen, respectively. As for individual life insurance, the main components of insurance
revenue were 2,694 million yen in expected claims and maintenance costs *5 (“expectedclaims”), 391 million yen in change in risk adjustment for non-financial risks related toextinguished risks (“risk adjustment release”) and 1,864 million yen in CSM*6 recognized forservices provided (“CSM release”). Insurance service results increased to 2,340 million yen(102.9% of 1Q of fiscal 2023) mainly due to an increase in CSM release and profit from GCL.
Financial results were 338 million yen (92.0% of 1Q of fiscal 2023) due to an increase in interest
income resulting from increased holdings of foreign securities, while valuation gains decreased
due to reduced holdings of stock. Other results were 57 million yen loss mainly because ofrecording expenses not directly related to insurance services.
As a result, net income before income taxes was 2,621 million yen (103.9% of 1Q of fiscal
2023). Net income attributable to owners of the Company was 1,887 million yen (106.9% of 1Q
of fiscal 2023).
With respect to expenses related to insurance contract incurred for 1Q of fiscal 2024,
insurance acquisition cash flows, which are cost directly attributable to the acquisition of
insurance contract groups, the sum of expenses related to marketing, underwriting andsystems, etc., were 2,210 million yen (101.5% of 1Q of fiscal 2023). In addition, maintenancecosts, which were not included in insurance acquisition cash flows, were 1,153 million yen(113.4% of 1Q of fiscal 2023).
*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.

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2

NEWS RELEASE(2) Financial condition
Assets, liabilities and equities
Total assets as of June 30, 2024 amounted to 111,774 million yen (112,417 million yen as ofMarch 31, 2024). The major account balances were 56,859 million yen in investment securities
mainly consisting of government bonds and corporate bonds with high credit ratings and 31,453
million yen in insurance contract assets. Although insurance contracts are generally recorded asliabilities, the Group records them as insurance contract assets because the insurance contract
liabilities 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 146,663 million yen,risk adjustment of 23,315 million yen and CSM of 91,894 million yen, which are related toindividual life insurance. In addition, contracts measured under the premium allocation approachof 341 million yen, which are related to GCL, were recorded as insurance contract liabilities.
Breakdown of insurance contract liabilities(In millions of yen)
Present value of future cash flows (claims minus premiums)(146,663)

Risk adjustment

23,315CSM

91,894

Insurance contract liabilities related to individual life insurance: total
Insurance contract liabilities related to GCL(Contracts measured under the premium allocation approach)(31,453)
341

Liabilities amounted to 20,713 million yen as of June 30, 2024 (21,535 million yen as ofMarch 31, 2024). The major account balance was 18,679 million yen in deferred tax liabilities.
Equities amounted to 91,061 million yen as of June 30, 2024 (90,882 million yen as of March
31, 2024), due to the recording of net income for 1Q of fiscal 2024.
The consolidated solvency margin ratio, one of the indicators used in administrative
supervision to determine the soundness of management, was 2,000.1% as of June 30, 2024,
which indicated that an adequate level of solvency capacity is maintained.
(3) Management indicator “Comprehensive Equity”
The Group announced its new mid-term business plan from fiscal 2024 to fiscal 2028 on May
14, 2024. As the Group has applied IFRS since fiscal 2023, the plan sets Comprehensive
Equity*7 based on IFRS as a key management indicator representing our corporate value. The
management goal is to achieve Comprehensive Equity of 200 billion yen to 240 billion yen in
fiscal 2028. Comprehensive Equity as of the end of 1Q of fiscal 2024 was 161,022 million yen(100.8% of March 31, 2024).
*7: Comprehensive Equity is an indicator defined by the Group. It is the sum of “Equity (attributable to owners of theCompany)” on the IFRS consolidated statement of financial position (B/S), “CSM”, a liability representing unearned
profit that the Group expects to earn as it provides insurance services (insurance contracts and reinsurance
contracts are aggregated and tax-adjusted), and "GCL contracts value", which is the value of future IFRS earnings,
including future renewals for GCL policies-in-force. We have defined it as the indicator that represents the corporate
value of the Group as it includes the value of future profits of policies-in-force.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

3

NEWS RELEASE(4) Business forecasts
The consolidated business forecasts for fiscal 2024 announced on May 14, 2024 remains
unchanged as shown below.
(In millions of yen)
Annualized
premium ofpolicies-in-force

Insurance
revenue

Insuranceservice results

Net income
attributable toowners of
the Company

34,00030,000

8,900

6,200

28,75024,698

8,222

5,734

Business forecasts(May 14, 2024)(Reference)
Business results
for fiscal 2023

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

Business forecasts(May 14, 2024)

Individual Life
Insurance

Group Credit
Life Insurance

27,2006,800

34,00025,424

3,326

28,750Total(Reference)
Business results
for fiscal 2023

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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(In millions of yen)March 31,
June 30,
2024
2024
ASSETSCash and cash equivalents ············································
Derivative assets ·························································
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 ··················································

24,423051,5641,073
17
32,378
571
62
110
1,892
322
112,417

19,167056,8591,126
22
31,453
626
56
82
1,933
446
111,774

171
1,485
685
78
34
110
18,610357
21,535

212
1,165
341
16
34
83
18,679179
20,713

26,61726,55033,481(0)
4,221

26,61726,55035,369(0)2,513

Total equity attributable to owners of the Company

90,870Non-controlling interests ··································

11

91,05011

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

90,882

91,061

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

112,417

111,774

LIABILITIES
Derivative liabilities ······················································
Other financial liabilities ················································
Insurance contract liabilities ···········································
Reinsurance contract liabilities ·······································
Provisions ··································································
Lease liabilities····························································
Deferred tax liabilities ···················································
Other liabilities ····························································
Total liabilities ················································EQUITY
Share capital ······························································
Capital surplus ····························································
Retained earnings························································
Treasury shares ··························································
Other components of equity ···········································

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

5NEWS RELEASE(2) Consolidated statement of profit or loss
(In millions of yen)Three months ended June 30
2023

2024

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

5,500

6,776

Insurance service expense ···················································(3,068)(4,225)Net expenses from reinsurance contract held ···························(157)

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

2,274

(211)
2,340

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

72

237

Impairment losses on financial assets, net ·······························(0)

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

320

(3)
126

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

392

360

Insurance finance income (expense) ······································(29)

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

4

(26)
4

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

15

57

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

(134)

(115)

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

(0)

(0)

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

2,521

2,621

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

(758)

(733)

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

1,763

1,887

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

1,765

1,887

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

(2)

(0)

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

1,763

1,887

Basic ··············································································

25.32

23.51

Diluted ············································································－－Net income (loss) attributable to:

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

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6

NEWS RELEASE(3) Consolidated statement of comprehensive income

Net income (loss)································································(In millions of yen)Three months ended June 30
2023
2024
1,763
1,887

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

442
(14)
531
531
2,295

(582)
(1,275)150(1,707)(1,707)
179

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

2,297
(2)
2,295

179
(0)
179

103

About LIFENET URL： https://ir.lifenet-seimei.co.jp/en/
LIFENET INSURANCE COMPANY has developed the LIFENET Manifesto that embodies
our mission of “Help our customers embrace life more fully by offering comprehensible,
cost-competitive and convenient products and services.” We have consistently delivered
customer-oriented products and services since our business commencement. As theleading online life insurer, we aim to realize “a society where next generation can be
nurtured with confidence in the future.”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 and provided
solely for readers' convenience. In case of any discrepancy or dispute, the Japanese document prevails.

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