NEWS RELEASE
February 13, 2024
Ryosuke Mori, President
LIFENET INSURANCE COMPANY(Securities Code: 7157, TSE Growth)

Consolidated Financial Results for 3Q of Fiscal 2023
Ending March 31, 2024 (IFRS)
Insurance service results of 6,275 million yen, up 28.9% year-on-year
TOKYO, February 13, 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 third quarter of fiscal 2023 ending March 31, 2024.
The Lifenet Group (the “Group”) has voluntarily adopted International Financial ReportingStandards (“IFRS”) since the first quarter of fiscal 2023 ending March 31, 2024. The figures forthe third quarter of fiscal 2022 ended March 31, 2023 and for fiscal 2022 have also been
restated on the IFRS basis.
1．Overview of the financial results for 3Q of fiscal 2023 ended December 31, 2023
(1) Business results
Condition of policies-in-force
The Group launched group credit life insurance (“GCL”) business since July 2023 with theaim of expanding new opportunity for profit growth. Annualized premium*1 of policies-in-force forindividual life insurance and GCL combined as of the end of 3Q of fiscal 2023 stands at 27,872
million yen (116.0% of March 31, 2023). Annualized premium of policies-in-force for individuallife insurance and GCL was 24,995 million yen (104.0% of March 31, 2023) and 2,877 million
yen, respectively.
The business performance of individual life insurance is as follows. The number of policies-inforce resulted in a total of 590,097 (103.8% of March 31, 2023). Annualized premium of new
business for the nine months ended December 31, 2023 was 2,063 million yen (68.1% of thenine months ended December 31, 2022) and the number of new business was 51,500 (67.4%of the nine months ended December 31, 2022). Surrender and lapse ratio*2 for the nine months
ended December 31, 2023 was 6.5% (6.4% of the nine months ended December 31, 2022).
*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.
*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.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

1

NEWS RELEASE
Results of operations(In millions of yen)
3Q of fiscal 2022

3Q of fiscal 2023

ChangeInsurance revenue

15,27718,0872,810

Insurance service results

4,867

6,275

1,407

Financial results*3

(636)

276

912

Other results*4

(552)

(335)

216

Net income (loss) before
income taxes

3,679

6,215

2,536

Net income (loss) attributableto owners of the Company

2,461

4,365

1,904

Insurance revenue for the nine months ended December 31, 2023 increased to 18,087 million
yen (118.4% of the nine months ended December 31, 2022). Insurance revenue for individuallife insurance and GCL was 16,826 million yen and 1,261 million yen, respectively.
As for individual life insurance, the main components of insurance revenue were 7,788 million
yen in expected claims and maintenance costs*5, 1,270 million yen in change in risk adjustment
for non-financial risks related to extinguished risks (“risk adjustment release”) and 5,191 million
yen in CSM*6 recognized for services provided (“CSM release”). Insurance service results
increased to 6,275 million yen (128.9% of the nine months ended December 31, 2022) mainly
due to the recording of risk adjustment release and CSM release. Financial results were 276
million yen mainly due to the recording of valuation gains from investment trusts. Other results
were 335 million yen loss mainly because of recording expenses not directly related toinsurance services.
As a result, net income before income taxes was 6,215 million yen (168.9% of the ninemonths ended December 31, 2022). Net income attributable to owners of the Company was
4,365 million yen (177.4% of the nine months ended December 31, 2022).
With respect to expenses related to insurance contract incurred for the nine months ended
December 31, 2023, insurance acquisition cash flows, which are cost directly attributable to theacquisition of insurance contract groups, the sum of expenses related to marketing,underwriting and systems, etc., were 6,473 million yen (84.6% of the nine months ended
December 31, 2022). In addition, maintenance costs, which were not included in insurance
acquisition cash flows, were 3,302 million yen (111.1% of the nine months ended December 31,
2022)*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.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

2

NEWS RELEASE(2) Financial condition
Assets, liabilities and equities
Total assets as of December 31, 2023 amounted to 109,728 million yen (93,814 million yen
as of March 31, 2023). The major account balances were 50,890 million yen in investment
securities mainly consisting of government bonds and corporate bonds with high credit ratingsand 30,920 million yen in insurance contract assets. Although insurance contracts are generally
recorded as liabilities, the Group records them as insurance contract assets because theinsurance 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
145,394 million yen, risk adjustment of 27,217 million yen and CSM of 87,256 million yen, which
are related to individual life insurance. In addition, contracts measured under the premium
allocation approach of 606 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)(145,394)

Risk adjustment

27,217

CSM

87,256

Insurance contract liabilities related to individual life insurance: total
Insurance contract liabilities related to GCL(Contracts measured under the premium allocation approach)(30,920)606

Liabilities amounted to 20,116 million yen as of December 31, 2023 (18,110 million yen as ofMarch 31, 2023), owing to an increase in deferred tax liabilities. The major account balance was
17,975 million yen in deferred tax liabilities.
Equities amounted to 89,612 million yen as of December 31, 2023 (75,704 million yen as ofMarch 31, 2023), due to raising new capital through public offering and third-party allotment andrecording of net income for the nine months ended December 31,2023.
The consolidated solvency margin ratio, one of the indicators used in administrative
supervision to determine the soundness of management, was 2,470.2% as of December 31,
2023, which indicated that an adequate level of solvency capacity is maintained.
Cash flows
For the nine months ended December 31, 2023, net cash provided by operating activities
amounted to 4,761 million yen (1,176 million yen provided for the nine months ended December
31, 2022) mainly due to recording of net income before income taxes though the increase ininsurance contract assets had a negative impact. Net cash used by investing activities
amounted to 2,754 million yen (1,047 million yen used for the nine months ended December 31,2022) mainly due to acquisition of investment securities. Net cash provided by financing
activities amounted to 9,708 million yen (81 million yen used for the nine months ended
December 31, 2022) due to the issuance of new shares through public offering and third-party
allotment.
Based on these activities described above, cash and cash equivalents as of December 31,
2023 totaled 23,873 million yen (12,137 million yen as of March 31, 2023).

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

3

NEWS RELEASE(3) Business forecasts
The consolidated business forecasts for fiscal 2023 announced on August 14, 2023 remains
unchanged as shown below.
The Group has voluntarily adopted IFRS for its consolidated financial statements since thefirst quarter of fiscal 2023 ending March 31, 2024. The business forecasts for fiscal 2023 are
prepared based on IFRS.
(In millions of yen)
Annualized
premium ofpolicies-in-force

Insurance
revenue

Insuranceservice results

Net income
attributable toowners of
the Company

28,20024,900

8,600

5,800

24,033

20,732

6,618

3,562

Business forecasts*7(August 14, 2023)(Reference)
Business results
for fiscal 2022*8*7: The business forecasts for fiscal 2023 include the impact of GCL business which started in July 2023.
*8: Insurance revenue, insurance service results and net income attributable to owners of the Company are accounts
based on IFRS. Insurance service results and net income attributable to owners of the Company for fiscal 2022
included the impact of the COVID-19 claims (1,378 million yen).

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

Business forecasts(August 14, 2023)

Individual Life
Insurance

Group Credit
Life Insurance

25,5002,700

28,20024,033-24,033

Total(Reference)
Business results
for fiscal 2022

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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
Apr. 1,
2022(In millions of yen)Mar. 31,
Dec. 31,
2023
2023

8,801
－
52,8391,660
27
21,912
854
90
363
1,432
213
88,196

12,137－49,318954
3728,526
579
70
254
1,693
243
93,81423,87383
50,8901,051
1530,920
479
68
137
1,916
291
109,728

－
1,232
－
93
34
363
14,352248
16,324

－
1,190
－
94
34
255
16,248287
18,110

0
1,047
606
87
34
138
17,975
226
20,116

21,65521,65524,184(0)
4,353

21,676
21,66327,747(0)4,600

26,61726,55032,113(0)
4,315

75,68789,595

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

71,84823

16

16

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

71,87175,704

89,612

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

88,196

93,814

109,728ASSETSCash 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 ··················································
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 ···········································
Total equity attributable to owners of the Company

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

5NEWS RELEASE(2) Consolidated statement of profit or loss
(In millions of yen)
Nine months ended Dec. 31
2022

2023

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

15,27718,087

Insurance service expense ···················································(10,188)(11,377)

Net expenses from reinsurance contract held ···························

(220)

(435)

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

4,867

6,275

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

224

272

Impairment losses on financial assets, net ·······························

(0)

(3)

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

(829)

102

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

(604)

371

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

(33)

(104)

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

2

9

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

31

33

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

(580)

(367)

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

(3)

(2)

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

3,679

6,215

Income taxes expense ·························································(1,239)(1,855)

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

2,440

4,359

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

2,461

4,365

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

(21)

(6)

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

2,440

4,359

Net income (loss) attributable to:

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

35.31

59.08

Diluted ············································································－－

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

6

NEWS RELEASE(In millions of yen)Three months ended Dec. 31
2022

2023

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

5,251

6,321

Insurance service expense ···················································(3,247)(4,082)Net expenses from reinsurance contract held ···························

(82)

(52)

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

1,921

2,186

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

74

120

Impairment losses on financial assets, net ·······························

0(2)

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

(289)

135

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

(214)

254

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

5

(46)

Reinsurance finance income (expense) ···································(2)

1

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

6

9

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

(182)

(115)

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

(1)

(0)

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

1,531

2,289

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

(515)

(683)

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

1,015

1,605

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

1,023

1,606

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

(7)

(0)

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

1,015

1,605

Net income (loss) attributable to:

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

14.68

20.01

Diluted ············································································－－

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

7

NEWS RELEASE(3) Consolidated statement of comprehensive income

Net income (loss)································································(In millions of yen)
Nine months ended Dec. 31
2022
2023
2,440
4,359

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 ···············································(1,319)
998
(199)
(520)
(520)
1,919

(309)
35
(10)
(284)
(284)
4,074

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

1,940
(21)
1,919

4,080
(6)
4,074

Net income (loss)································································(In millions of yen)Three months ended Dec. 31
2022
2023
1,015
1,605

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

(547)
(587)
(42)
(1,176)(1,176)
(160)

261
712
(20)
954
954
2,560

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

(153)
(7)
(160)

2,561
(0)
2,560

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

8

NEWS RELEASE(4) Consolidated statement of cash flows(In millions of yen)
Nine months ended Dec. 31
Cash flows from operating activities
Net income (losses) before income taxes ································
Depreciation and amortization ···············································
Impairment losses (reversal of impairment losses) ····················
Investment income ······························································
Other financial expenses ······················································
Losses (gains) related to fixed assets ·····································
Insurance and reinsurance contract ········································
Decrease (increase) in other assets ·······································
Decrease (increase) related to other liabilities ··························
Other, net ··········································································
Subtotal ············································································
Interest received ·································································
Dividends received······························································
Interest expenses paid ·························································
Income taxes paid·······························································Net cash provided by (used in) operating activities ················Cash flows from investing activities
Purchase of property, equipment and intangible assets ··············
Used in investment transactions ············································
Proceeds from sales and redemption of investment ···················
Other ···············································································Net cash provided by (used in) investing activities ················Cash flows from financing activities
Repayments of lease obligations ···········································
Issuance of new shares ·······················································
Payments of treasury stocks ·················································Net cash provided by (used in) financing activities ················Net increase (decrease) in cash and cash equivalents ···················Cash and cash equivalents, beginning of the year ·························
Currency exchange in cash and cash equivalents ·························Cash and cash equivalents, end of the period·······························

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

2022

2023

3,679
412
－
604
3
2
(3,533)
(204)
(194)
52
822
226
134
(2)
(3)
1,176

6,215
455
23
(371)
1
5
(1,660)
(127)
(177)
32
4,397
233
128
(1)
3
4,761

(308)
(6,946)
6,207－(1,047)(650)(14,413)
12,27434(2,754)

(81)
－
(0)
(81)
46
8,801
(6)
8,841

(81)
9,789
(0)
9,708
11,715
12,137
21
23,8739

NEWS RELEASE
About LIFENETURL: 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 products andservices 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.

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