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

Announcement of New Management Policy andMid-term Business Plan
Aiming to realize “a society where next generations can be nurtured withconfidence in the future” through creating the future of life insurance
TOKYO, May 14, 2024 - LIFENET INSURANCE COMPANY (TSE Growth 7157, President
Ryosuke Mori, URL: https://ir.lifenet-seimei.co.jp/en/) announces that it has formulated a new
Management Policy, a five-year mid-term business plan from fiscal 2024 to fiscal 2028, andOutcome goal.
Since business commencement in May 2008, we have adopted the LIFENET Manifesto“Comprehensible, Cost-Competitive, Convenient.” Guided by this customer-focused philosophy,
we have consistently operated our business and been supported by customers, especially young
people. As a result, the number of policies-in-force in our individual insurance business exceeded
600,000 in March 2024, earning us recognition as the top online life insurance company*1. In fiscal
2023, we newly launched group credit life insurance (“GCL”) business. We have achieved steady
growth by expanding online life insurance markets on our own initiative. In light of changes in theexternal environment, we have re-examined the social issues that we need to address and set
the “Outcome goal” as the society we hope to realize. We established a new Management Policy
and a five-year mid-term business plan from fiscal 2024 to fiscal 2028 in order to realize strong
growth going forward.
1. Medium-to Long- term Business Strategy■Outline of the new Management Policy
Help our customers embrace life more fully by offering comprehensible,
Missioncost-competitive and convenient products and services

VisionBe the leading online life insurer creating the future of life insurance

Value

Lifenetter Values
1. Manifesto-driven
2. Ownership
3. Teamwork
4. Growth mindset
5. Be ambitious

Our "Mission" embodies the LIFENET Manifesto (“the Manifesto”) and has not changed since
the previous Management Policy. Our renewed “Vision” captures our determination to create thefuture of life insurance on our own, with the confidence that we have expanded the market as aleading online life insurance player under the previous Management Policy. “Value” is newly
created based on the idea that human capital is essential for our “Vision” to realize. In line withthe expansion of the organization accompanying the expansion of our businesses, we will once
again clarify our shared values as “Lifenetter Values” that the officers and employees who gather
under the Manifesto should value and strengthen customer-oriented business operations.
Copyright© LIFENET INSURANCE COMPANY All rights reserved.

1

NEWS RELEASE■Outline of the five-year mid-term business plan (fiscal 2024 to fiscal 2028)
Tech & Services
 Pursue customer convenience by utilizing IT services
such as AI and Individual Number System*2
Rebranding
Priority areas
 Rebuild unique Lifenet brand aligned with current era(Business)and customer values
Embedded Deliver insurance and services seamlessly with our
Growth strategy
partners
Human
resources
strategyManagement
goal

Fiscal 2028
goals

Promote organizational transition to focus on priority areas
Create a virtuous cycle of employee growth and businessgrowthMaintain and strengthen an organizational culture based on
the LIFENET Manifesto
Achieve Comprehensive Equity of 200 billion yen to
240 billion yen

Stock price: 3,000 yen or moreFinancial target Annual growth rate of Comprehensive Equity per share:approximately 10%
Overall: Continuous improvement in engagement score[Diversity]
Non-financial
Achieve 30%+ ratio of women decision-makers and 15%+
targetratio of decision-makers under 30s(Human capital)[Growth opportunities]
Continuous improvement in engagement score for growth

We have established a five-year mid-term business plan ending in fiscal 2028. Based on therecognition of the business environment described below, we have adopted the three strategic
priority areas: Tech & Services, Rebranding, and Embedded. They further promote individual
insurance business and GCL business and move toward the next stage of growth. As for humanresources strategy, we will promote a shift in organizational structure to focus on these priority
areas, create a virtuous cycle of employee growth and business growth, and maintain andstrengthen an organizational culture based on the Manifesto.
We also changed our management indicator from European Embedded Value (“EEV”) in theprevious Management Policy, as we have newly adopted International Financial ReportingStandards (“IFRS”) since fiscal 2023. In the new mid-term business plan, we set the mostimportant indicator representing our corporate value is Comprehensive Equity*3, which we aim toreach between 200 billion yen and 240 billion yen in fiscal 2028. Our financial targets are toachieve a share price of 3,000 yen or more and annual growth rate of approximately 10% in
Comprehensive Equity per share in fiscal 2028. In addition, we have newly established nonfinancial targets regarding human capital in order to measure the impact of our human resources
strategy, which support promotion of the priority areas. In fiscal 2028, we aim to improve
employee engagement score for overall and engagement score for growth opportunities
continuously, and to have 30% or more of our decision-makers*4 be women and 15% or more ofour decision-makers be under 30s. By reinforcing our human capital and focusing on priority areas,
we aim to raise our corporate value and achieve the goals of our mid-term business plan.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

2

NEWS RELEASE■Committed to Outcome goal
Outcomegoal

A society where next generations can be nurtured with confidence
in the future

Referenceindicator

Market penetration rate of online life insurance,
Prospect for the future life, ease of raising children

Through the initiatives of the new Management Policy and the mid-term business plan
described above, we have set the Outcome goal as “a society where next generations can be
nurtured with confidence in the future,” which is the society that we envision. To track the progress,
we have set as reference indicators*5 for achieving this Outcome goal from official survey result,the “online life insurance market penetration rate,” “prospect for the future life,” and “ease ofraising children.”In the middle of high consumer demand for life insurance, customers have to pay much costfor it, burdening their time and finances. We started as an online life insurer addressing to mitigate
such burdens by providing necessary coverage at appropriate premiums, conveniently and havedelivered our values, especially to younger generations who raise children.
In establishing the new Management Policy, we have decided to define the society we hope torealize based on our social issues that we must address once again. We aim to contribute to aworld where every customer can choose their preferred way of life, despite future uncertainties.
In particular, we commit to contribute to the creation of a society where next generations can be
nurtured with confidence in the future. This is in response to to issues arising from an aging
population and declining birthrates. Our role is to provide solutions that allow people to live life on
their own terms, even as society evolves. While focusing on this challenge, we identified thesociety that we hope to realize.
2. Review of the Previous Management Policy and Recognition of the Business
Environment■Review of the previous Management Policy
In the previous Management Policy formulated in November 2018, having recognized the highgrowth potential of online life insurance market, we proactively invested in priority areas of“innovation of customer experience” and “enhancement of promotion capabilities” in order toreliably meet customer needs and drive the growth of the online life insurance market. As for the
direct business of individual insurance business, we made efforts to continuously sophisticate our
website’s UI/UX and actively carried out marketing investment, mainly through televisioncommercials, resulting in significant growth in policies-in-force performance. Meanwhile, we havealso accelerated alliances with partner companies in other industries. Because of our leading
position in the online life insurance industry, we have been selected by attractive partnercompanies and have been able to create a virtuous cycle model that leads to further expansionof the online life insurance market. Furthermore, by leveraging the group business synergy with
our partner company, KDDI CORPORATION, we achieved entry into GCL business.
As a result of these efforts, we achieved our management goal of achieving 100 billion yen in
EEV at the end of September 2021, and subsequently renewed the target to 200 billion yen. In
the previous Management Policy period, the COVID-19 outbreak occurred, and our businessperformance was significantly fluctuated by the spread of COVID-19. Even so, we achieved
steady growth. As of the end of March 2024, EEV reached 146,991 million yen. Annualized

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

3

NEWS RELEASE
premium of policies-in-force increased significantly from 13,085 million yen at the end of March
2019, the end of fiscal year in which the previous Management Policy began, to 28,750 million
yen at the end of March 2024. As of March 31, 2024, there were 600,945 policies-in-force inindividual insurance business, compared with 308,854 as of March 31, 2019.

■Recognition of the business environment behind the establishment of the new Management
Policy and the mid-term business plan
Based on the review of the previous Management Policy, we are aware of the following threepoints regarding the business environment surrounding us: (i) Continuous expansion and further
growth potential of online life insurance market; (ii) Expansion of technology utilization startingfrom younger generations; and (iii) Entry into online finance services by companies with a huge
ecosystem.
(i) Continuous expansion and further growth potential of online life insurance market
The first point is the potential for continued expansion and further growth of the online life
insurance market. We believe that the digitization of financial services, which has continued since
before the COVID-19 outbreak, has accelerated due to COVID-19 and has brought huge changes
to customer behavior patterns and corporate awareness of the business environment. In the life
insurance industry, we believe that the structural shift to online services is irreversible and thatthe online life insurance market will continue to expand. Amid increasing competitors offering
insurance products and services online and intensifying competitive landscape, we need toenhance our value proposition and create new value in order to maintain a leading position in the
online life insurance market.
(ii) Expansion of technology utilization starting from younger generations
The second point is to expand the use of technology starting with young people. Since its
business commencement, we have expanded its business with the support of young customers,
mainly those with small children. In the previous Management Policy, combined with the
expansion of online businesses in other industries, our customers have expanded to the middleaged and elderly. At the same time, as convenient IT services continue to emerge, we believethat it is important to be selected by the younger generation of the time in order to apply ongoing
technologies. This is because we aim to adapt customer behavior patterns that change with thetimes and to further expand our business scale.
(iii) Entry into online finance services by companies with a huge ecosystem
The third point is the entry of companies with a huge ecosystem into online finance services.
We recognize that interest in online financial services by companies in other industries has been
increasing significantly in recent years. As mentioned above, we have formed alliances withpartner companies in various industries. We recognize that there is potential for further growth ofthe online life insurance market through the integration of our insurance business into thestrategies and ecosystem of our partner companies. We will continue to develop and provide
products and services that are attractive to our partner companies. At the same time, we believe
it is significant to strengthen our own brand equity and continue to be the company of choice forour partner companies.
Based on the above recognition of the business environment, we will focus on the priority areasof the mid-term business plan under the new Management Policy and aim to continuously improve
corporate value and achieve our Outcome goal by providing better services to customers andsociety.
Copyright© LIFENET INSURANCE COMPANY All rights reserved.

4NEWS RELEASE*1. Ranked 1st in life insurance contract customer satisfaction study (direct segment) of J.D. Power for 4

consecutive years from 2021 to 2024, based on survey toward customers who have purchased life insurance.
*2. Individual Number System is a system in which all people living in Japan are given an individual identification
number for the purpose of improving convenience and others for citizens. It is also available online and you
can apply to services online related to parenting by the one-stop service and can receive notifications fromadministrative organizations.
*3. Comprehensive Equity is an indicator defined by the Group. It is the sum of “Equity (attributable to owners of
the Company)” 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 andreinsurance 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.
*4. Decision-makers are directors and employees at the department head level and above.
*5. The market penetration rate of online life insurance is measured based on “the percentage of respondents whowant to purchase via the Internet in the future” and “the percentage of those who have actually purchased via
the Internet” in the “Survey on Life Protection” by the Japan Institute of Life Insurance. Prospect for the future
life is measured based on “the percentage of respondents who answered “improve” about the prospect of the
future lifestyle” in the “Public Opinion Survey on the Life of the People” by the Cabinet Office. Ease of raisingchildren is measured based on “the percentage of respondents who answered “It is easy to raise children” inthe “Public Opinion Survey on Social Awareness” by the Cabinet Office.

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, costcompetitive and convenient products and services.” We have consistently delivered customeroriented products and services since our business commencement. As the leading 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/version of the original Japanese document, prepared and provided
solely for readers' convenience. In case of any discrepancy or dispute, the Japanese document prevails.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

5

Securities Code: 7157
TSE Growth

New Management Policy
and Mid-term Business Plan

May 14, 2024

Committed to Outcome Goal
Outcome goal

A Societywhere next generations can be nurtured
with confidence in the future
we contribute to creating a future where next generations can be nurtured
by society as a whole through delivering the value of insurance based on the LIFENET Manifesto.

Outcome reference indicators
Market penetration rate of

1 online life insurance

Prospect

2 for the future life

3 Ease of raising children
1Outcome Reference Indicators
Outcome reference indicators1

01

Market penetration rateof online life insurance

We offer simple coverages, affordable
premiums, and convenient procedure online,
and contribute to expansion of online life
insurance market.

02

Prospect for the future life

We want customers to leave their worries
about the future to convenient and useful
online life insurance and use the money andtime they have saved to help them move
forward in their lives.

03

Ease of raising children

In particular, we see the declining birthrate
and aging population as important social
issues, and we contribute to creating a society
where people want to raise children.

% of those who
answered “improve”

18.0%

7.7%

% of those who answered“easy to raise children”

Ratio of respondents who haveintention to purchase online

4.4%

Ratio of respondents
who purchased online
2016

1.

6.5%

No data
2019

2022

2019

2020

2021

2022

2020

2021

2022

The market penetration rate of online life insurance is measured based on “the percentage of respondents who want to purchase via the Internet in the future” and “the percentage of those who have actually purchased via
the Internet” in the “Survey on Life Protection” by the Japan Institute of Life Insurance. Prospect for the future life is measured based on “the percentage of respondents who answered “improve” about the prospect of the
future lifestyle” in the “Public Opinion Survey on the Life of the People” by the Cabinet Office. Ease of raising children is measured based on “the percentage of respondents who answered “It is easy to raise children” in the“Public Opinion Survey on Social Awareness” by the Cabinet Office.

2

New Management Policy

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

VisionBe the leading online life insurer
creating the future of life insurance
Lifenetter Values

Value-Manifesto driven-Ownership-Teamwork-Growth mindset-Be ambitious
3

FY2024-2028 Mid-term Business Plan
Growth Strategy
Priority Areas

Goals in Fiscal 2028
Management Goal

Comprehensive Equity (CE) : ¥200-240bn
Rebranding

Embedded

中期計画
Tech & Services

Financial Targets

Stock price：¥3,000+
Annual growth rate of CE per share：approx. 10%

Non-financial Targets (Human capital)
Overall engagement score: continuous improvement

Human Resources Strategy• Promote organizational transition to focus on priority areas• Create a virtuous cycle of employee growth and business growth• Maintain and strengthen an organizational culture based on the
LIFENET Manifesto

Diversity

GrowthOpportunities

Ratio of decision-makers：
Women 30%+, Under 30s 15%+
Engagement score (growth):
continuous improvement
4Our Business Environment◼ External environment changes will be a major tailwind for business growth１

Expansion of online life
insurance market• COVID-19 accelerated online
financial services• Online insurance players increased2

Younger generation ×
technologies• Emerging new technologies
penetrate a wide rage of consumers,
starting with younger generations

3

Trend of financial
ecosystem• High interest in online insurance
business from other sectors

決済
Payment

Intention to purchaselife insurance online1

18.0%

AI

SNS

App

Individual
Number
SystemRatio of respondents who have intention topurchase online
Ratio of respondents who
10.9
purchased online

2.8
2010

1.

2013

2016

2019

4.4%
2022

Source: Survey on Life Protection by the Japan Institute of Life InsuranceBanking
銀行

Insurance

Ecosystem

Loan

証券
Securities

5

Priority Areas for Further Growth◼ Three priority areas to move toward the next stage of growth

Rebranding

Embedded

Qualitative changes inInternet direct businessBusiness enhancementwith partners

DirectTech & Services

Partner

GCL

Refinement of value provided
GCL

Partner
Direct6

Individual：Direct Business

Rebranding

Tech & Services

Embedded◼ Aim for further growth by updating the Lifenet brand and being uniquefor younger generation
Focus areas of marketing centered on younger generation

Rebranding

Number of newpolicies by age group

Nurture Marketing
Increase
preference
Enhancement of
Products &Services

20s-30s
FY2023Future7

Individual：Partner Business

Rebranding

Tech & Services

Embedded◼ Accelerate growth by embedding our business into partners’ ecosystem

Development of
new partners

Telecommunications

Deepening ties with existing partners• Initiatives to enhance business synergy inpartners’ ecosystem

RetailDevelopment of new business partners

Payments
Internet
services
Healthcare• Alliances with companies having
a broad customer base, attractive brands,
and extensive data8

Group Credit Life Insurance

Rebranding

Tech & Services

Embedded◼ Aim for business expansion by alliance with au Jibun Bank anddevelopment of new partner banks
Deepening of alliance with au Jibun Bank

Expansion of partner banks• Contribute to enhancing competitiveness of mortgage
loan through develop our high-quality insurance
products and services• Aim to develop new partner banks by capitalizing on
the shift to DX in the mortgage loan business in thebanking industry
The proportion of institutions working on
digitalization of administrative processes3

1

43.5%

2

37.5
33.7

2020年
2020
1. The 2023 Oricon Client Satisfaction Survey hosted by Oricon Inc.
2. Searched by Mogecheck, online mortgage comparison service
3. Source: Japan Housing Finance Agency ” Mortgage Lending Trends Survey”

2021年
2021

2022年
2022

Year

9

HR Strategy for Business Growth◼ Further strengthen initiatives for human capital based on diversity andgrowth opportunities
Human Resources Strategy
focus on

Policies regarding HR

Diversity & Growth Opportunities
FY2028 Mid-term business plan
Cross-organizational
systemDevelopment throughchallenges

Strengthen culture based on LIFENET Manifesto
Non-financial Goals

Management Policy

Overall・Diversity・Growth opportunities

Value

Lifenetter
Values10

New Management Indicator “Comprehensive Equity”◼ Adopt “Comprehensive Equity” as new management indicator
representing corporate value to replace EEVManagement Goal

Comprehensive Equity (CE) Aim to achieve ¥200-240bn in FY2028
European Embedded Value（EEV）
Conceptually similar

Comprehensive Equity (CE)GCL contracts value1¥6.7bnCSM2（after-tax）

Value of in-force
business¥62.2bn¥121.7bn

IFRS Equity3
Adjusted net worth¥90.8bn¥25.2bn¥146.9bn

1. The value of future IFRS earnings for GCL policies-in-force (PAA applied) including future renewals as of the valuation date.
2. Aggregation of insurance contracts and reinsurance contracts with tax effect (28%) adjusted.
3. Attributable to owners of the Company¥159.8bn

as of 2024/03
11

LIFENET Manifesto
Comprehensible, Cost-Competitive, ConvenientI.

Our Guiding Principles

II.

Making Life Insurance Accessible Again - Headache-free(1) Creating the future of the life insurance without losing sight of its original
premise: “an ounce of prevention is worth more than a pound of cure.”(1) Helping the customers help themselves. By making our materials easy tounderstand, customers can determine which coverage is truly the best fit.

(2) Listening to what our customers are saying. Recognizing their needs andacting accordingly. Allowing our actions to be borne out of their voices
and needs.

(2) Turning “clauses” in the insurance contract into succinct points that yourgrandmother could grasp.

(3) Delivering the caliber of products and services that we would feel
confident recommending to our own friends and families.

(3) Making all touch points headache-free. Beyond the application process,ensuring the claims and billing processes are also easy to understand.

(4) Being a “straight-shooter”. Committing to transparency. Communicating
openly about our management team, our products, and our employees.

(5) Embracing diversity and dialogue to keep us abreast of changing needs
and preferences. Delivering peace of mind that we’ll be around in 100
years.
(6) Acting in good faith means always taking the high road when it comes tocompliance and ethics.

III.

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

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 andbeyond 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.

12All information on this document that is not historical fact constitutes
forward-looking information and is based on assumptions and forecasts
available to the company at the time of preparation. The company cannot
guarantee the accuracy of these assumptions and forecasts.
Earnings projections and other information on this may differ materiallyfrom actual performance due to various risks and uncertainties.
This is a translation of the original Japanese document, prepared andprovided solely for readers' convenience. In case of any discrepancy or
dispute, the Japanese document prevails.

https://ir.lifenet-seimei.co.jp/en/
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