Securities Code:7157
TSE Mothers

Reference Datafor
Third Quarter
Fiscal 2018

February 12, 2019

LIFENET is…

Comprehensible
Cost-Competitive
Convenient Remembering the original purpose oflife insurance – mutual support – Plugged-in way to reach customers who needinsurance products with necessary coverage1Overview of Cumulative 3Q for FY2018(JPY mn)

Annualized premium1 ofpolicies-in-force

12,510(vs end of FY2017 112.2%)

Annualized premium1 of
new business

1,951(Y-on-Y 163.8%)

Adjusted profit2

EEV3 (European Embedded Value)

1,906

62,240(Y-on-Y 110.1%)(Adjusted incremental EV4 2,812)

Products received externalhigh evaluation
1.
2.
3.
4.

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 11 and 12 for details.
EEV as of December 31, 2018 is calculated applying the same operating assumptions as those used for September 30, 2018, and is not reviewed by third-party specialists.
Adjusted incremental EV consisted of components accurately reflecting our business growth in 3Q of FY2018, see page 15 for details.

2Annualized Premium/Number of Policies-in-Force
As of
3Q end: Number of policies-in-force: Annualized premium of policies-in-force (JPY bn)

12.5
11.1
10.0
9.3
8.7

215,403295,662  Keeping a strong

263,847
225,534

Up 12%
vs end of
FY2017

239,800

Up 12%
vs end of
FY2017

growth trend

 Exceeded
300,000 policiesin-force in January
15/03 16/03 17/03 18/03 18/12(YY/MM)3

Breakdown of Policies-in-Force
Number of policies-in-force- Term Life1- Whole-life Medical1- Term Medical Care1- Long-term Disability1- Cancer1
Sum insured of policies-in-force2(JPY mn)

Number of policyholders(Reference) Surrender and lapse ratio3
1.
2.
3.

18/03

18/12

263,847
131,256
76,606
9,924
42,6293,432
2,059,703
169,532

295,662
144,923
82,9829,610
47,78010,3672,221,734
189,508

17/3Q

18/3Q

5.9％

Component
ratio

100%
49%
28%
3%
16%
4%

6.3%

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.
Sum insured of polices-in-force are the sum of death coverage, and do not include third-sector insurance.
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.

4

Annualized Premium/Number of New Business:Number of new business (Fiscal year):Number of new business (First 9 months of fiscal year):Annualized premium of new business (First 9 months of fiscal year, JPY mn)

1,951
Y-o-Y
up 64%

1,191
996
872
27,982955

45,36039,175

Y-o-Y
up 68%

 Business results forthe first 9 months
exceeded that of
fiscal 2017
 Factors of growth-

29,741
25,15021,095 18,267 20,599-

26,997FY201415

16

17

18/3Q (YTD)

Increase of conversion
rate by improvement ofapplication website
Enhancement of ourbrand by advertising
Effect of channel
diversification

5

Reached Record Highon a Quarterly Basis Progress steadily towards record high on a fiscal
year basis
契約件数 (件)

契約年換算保険料
Recordhigh on a(百万円)
17,312quarterly basis
3Q FY2018: Number of new business

6,497
Record high on amonthly basis
January 2019
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2008
1.

FY2009FY2010Result of January 2019 is on a preliminary basis.

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY20186

Marketing Expenses per New Business: Marketing expenses per new business (JPY thousand): Marketing expenses / Annualized premium of new business

67

1.0

15

 Expecting around
60 thousand yen
level for fiscal 2018
18/3Q (YTD)

51
1.5
1.3

1.2

FY2014Marketingexpenses(JPY mn)62

 Maintainedsame level
continuously
1.4 despite increase inmarketing expenses

61

59

16

17

1,672 1,302 1,822 2,627 2,850
7

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

 Operating expenses
ratio1 23.0%

10,421
9,628
9,007

8,706

8,372

 Aim for improving
23.0% operating expenses
ratio1 by scale
expansion andimprovement ofoperational efficiency

25.6 %
21.5 %

2,142

FY2014
1.

1,937

15

23.1 %

2,225

16

22.2 %

2,315

17

1,999

18/3Q (YTD)

The ratio of operating expenses excluding marketing expenses to premiums income8Long-term Profit Not Reflectedunder Current Statutory Accounting
 Taking time to generate profit, as initial cost isrecognized at the time of acquisition, and the revenue iscollected gradually over long period
Approximate profit structure for one policy: Premiums: Operation expenses1 excludingmarketingexpenses: Marketingexpenses

Total profit/loss

Accounting
profit/loss
Initialfiscal year
初年度

Year 22年目

Year 33年目

Year 44年目…

Year X
X年目

Revenue
ExpenseHeavy initial cost1.

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

Collect revenue
over long period
9Key Business Indicators ofCorporate Value Disclosed as key indicators of substantial
profitability

Adjusted profit(Ordinary profit (loss) excluding marketing expenses)
Indicator of profit generated from policies-in-force

EEV (European Embedded Value )1

Indicator of long-term profitability of insurancecompanies
1.

EEV is one of the calculation metrology 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.

10Adjusted Profit
 Indicator of profit generated from policies-in-force
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• Accrual timing of marketing expenses is far different fromthe one of revenue, therefore excluding marketing expenses
from ordinary profit (loss) enables to indicate profit
generated from policies-in-force

Ordinary profit excluding marketing expenses

Adjusted profit

11Adjusted Profit Adjusted profit steadily increased though ordinary
profit (loss)1 to be influenced by marketing expenses(JPY mn)

Ordinary profit/loss1(JPY mn)

Adjusted Profit= Ordinary profit (loss)1
excluding marketing expenses
2,429: Fiscal year
: First 9 months of fiscal year

584

1,887

Y-on-Y
up 10%

1,910

88
1,200

(197)
(472)

1,500

1,438

15

16

1,730

1,906

839
(944)

FY2014
1.

15

16

17

18/3Q (YTD)

FY2014The ordinary profit (loss) before amortization of deferred assets under Article 113 of the Insurance Business Act

17

18/3Q (YTD)

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
is reflected in endof-period net assets

Revenue

Revenue
ExpenseExpenseProfit/Loss for
current fiscal year

Unrealized future profits/losses onpolicies-in-force
at the end of current fiscal year13European Embedded Value1 (EEV)
 CAGR of EEV is 20%2 and value of in-force business is
39% since IPO
 Steadily growing even in a low interest rate 62,240
environment(JPY mn)
44,440
Value of in-force business
Adjusted net worth

36,26147,17731,28422,9071.

2.

15,19818,547

18,746

5,122

6,668

13,425

12,078

11,075

11,095

12/03

13/03

14/03

15/03

11,831

28,42725,24820,24014,152

16,086

16,021

16,012

16/03

17/03

18/03

15,062
18/12 (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 level of 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 December 31, 2018 is calculated applying the same operating assumptions as those used for
September 30, 2018, and is not reviewed by third-party specialists.
The calculation includes 3,040 million yen in proceeds from a third-party allotment in May 2015.

14

Adjusted Incremental EV Accurately indicates our business growth ina certain period among 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

151Structure Breakdown of EEV
 Adjusted incremental EV 2,812 million yen

62,240(JPY mn)

44,4401.

18/03

Assumptionchanges

Adjusted
incremental EV

New business
value

Expected existing
business contribution

1,926

683

Total

2,812

15,194

Economic variances
and assumptionchanges(207)

Operatingexperiencevariances202

million yen

Assumption changed
in 2Q（No change in 3Q）

18/12 (YY/MM)
16

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 December 31, 2018 is calculated applying the same operating assumptions as those used for September 30, 2018, and is not reviewed by third-party specialists.

Financial Condition
18/03

18/12

Cash and deposits

35,541926

37,334960

Monetary claimsbought

1,999

1,199

Money held in trust

2,567
28,303
8,398
1,505
13,892346
4,161
22,153(JPY mn)(YY/MM)

Total assets

Securities
Government bonds
Municipal bonds
Corporate bonds
Stocks1
Foreign securities
Other securities2

Total liabilities
Policy reserves andotherTotal net assets
Solvency margin ratio

Modifiedduration
3,015
30,23911.7 years

8,022
1,381
16,086341
45
4,362
25,027

21,186

Maintain adequatelevel of Solvency
marginratio
24,055

13,387

12,3062,455%

2,191%

1.

Holds shares of Advance Create Co., Ltd. and others for the purpose ofbusiness partnership etc. in online sales

2.

Investment trust including foreign bonds and others

17Evaluation for Products
 Products highly evaluated by professionals
Term Life

1.
2.
3.
4.
5.

Long-term
Disability

Cancer

The most popular insurance products in each category from January through December 2017, receiving the highest number of applications of Kakaku.com Insurance, the sales agent company of insurance products
The Most Chosen Insurance Ranking 2018 of HOKEN ICHIBA is based on compiled date from the number of brochure request and application from January through December 2017.
Lifenet Cancer Insurance Double Yell received the Grand Prize in the cancer insurance product category in the Nikkei TRENDY magazine published by Nikkei Business Publications, Inc. of May 2018.
MONOQRO the MONEY magazine of December 2018
The survey was conducted from August 20, 2018 to September 12, 2018, and was evaluated by 30 financial planners. Lifenet Long-term Disability was chosen as number one from 10 products.

18

Business Forecast FY2018
 No change from 2Q
 Aim for reaching historical high on a fiscal year
basis
(JPY mn)
Ordinary income
Ordinary profit (loss)
Net income (loss)(Reference)
Annualized premium1 of new
business
1.

Business forecast
for FY2018(Reference)
Results for FY2017

12,600(1,600)(1,600)10,962
(197)
(249)

2,600

1,714

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.

19

Mission

Help our customers embrace life more fully
by offering comprehensible, costcompetitive and convenient products andservices

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

Priority areas

New Management 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 business20

Management Goal
 Aim to achieve EEV of 100 billion yen
by business growth in a mid-term
1
（百万円）
EEV

(JPY mn)

100,000: Value of in-force business: Adjusted net worth

44,44031,284
18,547 18,746

36,261

22,907 25,248

12/03 13/03 14/03 15/03 16/03 17/03 18/03 19/03
1.

(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 level of 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.

21

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 than a pound of cure.”(2) Listening to what our customers are saying. Recognizing their needs andacting accordingly. Allowing our actions to be borne out of their voices andneeds.
(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, 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.

II.

Making Life Insurance Accessible Again - Headache-free(1) Helping the customers help themselves. By making our materials easy tounderstand, customers can determine which coverage is truly the best fit.
(2) Turning “clauses” in the insurance contract into succinct points that yourgrandmother 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 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.

22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 (Cumulative 3Q)(JPY mn)

Note

Ordinary income

8,949
409
9,359

1,082
205
1,288

Insurance claims and other

1,426

1,950

524

Increased by In-force policies business increase. Percentage of
insurance claims and benefit claims to insurance premiums is 18.4%

Insurance claims

761

1,105

344

Increased from 55 cases to 71 year on year (3Q of 2018)

Benefit claims

434

498

64

Increased from 4,604 cases to 5,136 year on year (3Q of 2018)

Provision for policy
reserves and other

2,737

2,962

224

Other

3,484
1,741
509
1,232
434

4,850
2,850
578
1,421
540

1,366
1,108
68
189
106

Ordinary expenses

8,082

10,303

2,221

Ordinary profit (loss)

(11)

(944)

(933)

31

12

(18)

(42)

(957)

(914)

Mortality margin

1,941

2,075

134

Expense margin (loss)(1,875)(2,998)(1,123)

Interest margin (loss)

1

(13)

(15)

Fundamental profit

67

(936)

(1,004)

Other

Condensed Statements of Operation

Change

7,867
203
8,071

Insurance premiums and other

Operating expenses
Marketing expenses
Customer service
System and other

Extraordinary losses andincome taxes
Net income (loss)

Fundamental
ProfitFirst 9First 9months of months of
FY2017FY2018In-force policies business increase

Increased slightly by transferring to standard policy reserves.
Percentage of provision for policy reserves (2,962 million yen) toinsurance premiums is 34.0%
Marketing expenses mainly advertising expenses increased

Marketing expenses mainly advertising expenses increased25

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

EEV and new business value as of December 31, 2018
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: 5% decrease in mortality for annuity business
Sensitivity 7: Change the required capital to the statutory minimum
1.

Change in EEV as ofDec. 31, 2018

Change in VoNB

62,240(2,626)2,477(1,307)
1,271
468
(427)
2,423
273
2,975
76

1,926
47
(171)
35
(66)
62
344
22
293
9

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 more than 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 accordance with the IBR, the sensitivities carried out do not affect the reserves at thevaluation date. The sensitivity on the value of new business excludes the impact on the adjusted net worth. EEV as of December 31, 2018 is calculated applying the same operating assumptions as thoseused for September 30, 2018, and is not reviewed by third-party specialists.

26

Three Surplus Factors ofFundamental Profit
3Q of FY2018(JPY mn)

Ordinary income

Statements of operations
Insurance premiums and other 8,949

Premiums income 8,706

Reinsurance income 243

Net premiums

Reinsuranceincome292
Other ordinary income 117

Reversal ofreserves foroutstanding
claimsReinsurance commissions
347

Insurance claims
and benefits
Reinsurance
commissions

Provision for policy reserves
and others 2,962

Change inpolicy reserves

Insurance claims and benefits
1,603Interest anddividends

Change inpolicy reserves

Operating expenses 4,850

Operatingexpenses

Other ordinary
expenses 540

Other ordinary
expenses

Extraordinary profit (loss) (9)Income taxes 3

Mortality
margin (loss)
2,075

Net profit (loss)(957)
Some items with minimal amounts have been omitted.

Gains on salesof securities

Other ordinary
incomeInvestment expenses 0

Ordinary profit (loss)
(944)

1.

Expense loading

Investment income

Insurance claims and other 1,950

Ordinary expenses

Profit analysis

Expensemargin (loss)(2,998)

Projected
interest
Interest
expenses

Provision forcontingency
reserves
Losses on salesof securities

Capital gains(losses)98

Interest
margin (loss)
(13)

Other
onetimegains (losses)(106)

Extraordinary profit (loss)(9)
Income taxes 3

Net profit (loss) (957)27

Solvency Margin Ratio Calculation
As of Dec 31, 2018

(R 1  R 8 )2  (R 2  R 3  R 7 )2  R 4 / 2

Solvency margin ratio
2,191.7%
Cash and deposits
960
Monetary claims bought

1,199
Money held in trust
3,015

=

Total amount of solvency margin<numerator>
20,074

Other liabilities
792

Contingency reserves 1,625

Excess over the fullZillmerized reserve 6,012

Price fluctuation reserves
40

Securities
30,239Deferred tax liabilities onavailable-for-salesecurities
1

124
Valuation difference on
securities available-for1

sale 320

Tangible fixed assets

87
Intangible fixed assets
642

Other assets
1,188

Risk of change in mortality rate (calculated based onvalue of policies in force)

335

23,719

Capital stockand otherassets11,950Net assets
12,306

Total amount of risk/2< the denominator>
1,831/2

Insurance risk R1 1,151

Reserves for outstanding claims

Policy reserves

÷(JPY mn)

Add liabilities
with strong
capitalcharacteristics
such as pricefluctuation
reserves andcontingency
reserves

Medical insurance risk R8 426
Risk of change in medical incidence rate (hospital
admission rate , etc.)

Assumed interest rate risk R2 2
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
with minimum guarantees

Asset management risk R3 778[Credit risk] Risk that asset values decline due todeterioration in financial condition of creditees[Price fluctuation risk]Risk of incurring losses due todecline in market value of stocks and bonds, etc.

Business management risk R4 70
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.

28

New Management Policy(Disclosed on November 12, 2018)

Background of setting New Management Policy

Looking Back on 10 Years since Business Commencement New business performance back on growth track
20,000Term Life andWhole-life
MedicalApplication via
smartphone

18,00016,000

Renewal ofTerm Life andWhole-life
MedicalLoad charge rates
disclosed
Application via
feature phone

14,00012,000au Life Insurancewith KDDI

Agent
commission
rate disclosed

300,000
270,000

Renewal ofLong-term
Disability

Online claim ofWhole-life
MedicalLong-term
Disability

Renewal ofTerm Life

240,000

CancerInsurance

210,000
180,000

10,000150,000

8,000

120,000

6,000

90,0004,000

60,0002,000

30,00000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY2008FY2009FY2010FY2011FY2012FY2013

Number of new business
保有契約件数（件、右軸）(left axis)

FY2014FY2015

Number of policies in-force
新契約件数（件、左軸）(right axis)

FY2016FY2017 FY201830

Background of setting New Management Policy

Growth Potential of Online Life Insurance Market
 Expect growth of online insurance market
based on growing consumers intension
14.0 %

12.5 %

Market share of direct automobile insurance1
ダイレクト自動車保険シェア

12.0 %
10.0 %

Market share of online life insurance2
オンライン生命保険シェア（加入）10.5 %

Ratio of life insurance application intention via online3
オンライン生命保険シェア（加入意向）

9.1 %
8.0 %

7.9 %
8.0 %

5.9 %
6.0 %
4.0 %

4.5 %

2.0 %
0.0 %

2.9 %
0.2 %

0.8 %

1.8 %

3.3 %

2.2 %

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
1.

Ratio of direct automobile insurance to direct writing premiums in whole automobile insurance market

2.

Ratio of online application to whole application channels of life insurance

3.

Ratio of consumers who intend to apply via online in case he/she applies life insurance in the future31

Background of setting New Management Policy

Priority Areas during 10 Years

Start-up period

Previous mid-termbusiness plan period

Current mid-termbusiness plan period

Telephoneconsultation

Telephoneconsultation

SPH channel

SPH channel

PC channel

PC channel

PC channel

Brand

Brand

Brand

Product

Product

Product

PR

PR

PR

Promotion

Promotion

Promotion

Agent

Agent andwhite label (KDDI)

competitiveness2016-2018

Product

2013-2015

Visit

Apply

Promotion
capabilities

2008-2012

Customerexperience Responding to changing customer needs
for sustainable growth32

Mission

Help our customers embrace life more fully
by offering comprehensible, costcompetitive and convenient products andservices

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

Priority areas

New Management 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 business33

Business Indicators
 Aim for sustainable growth ofEmbedded Value
Key businessindicators ofcorporate value

Business
indicators
supporting
sustainablegrowth ofcorporate value

1.
2.

Embedded Value(EV)

Growthindicators
Profitability
indicators
Soundness
indicators

 European Embedded Value (EEV)1
 Adjusted incremental EV2

 In-force business performance New business performance Adjusted profit(Ordinary profit excl. marketing expenses)- Operating expenses ratio excluding marketing expenses Marketing efficiency of new business Solvency margin ratio

EEV is one of the calculation metrology 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.
Adjusted incremental EV consisted of components accurately reflecting our business growth in 1H of FY2018, see page 15 for details.

34

Management Goal
 Aim to achieve EEV of 100 billion yen
by business growth in a mid-term
1
（百万円）
EEV

(JPY mn)

100,000: Value of in-force business: Adjusted net worth

44,44031,284
18,547 18,746

36,261

22,907 25,248

12/03 13/03 14/03 15/03 16/03 17/03 18/03 19/03
1.

(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 level of 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.

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