NEWS RELEASE
May 13, 2021
Ryosuke Mori, President
LIFENET INSURANCE COMPANY(Securities Code: 7157, TSE Mothers)

Financial Results for Fiscal 2020 Ended March 31, 2021
Annualized premium of in-force business of 18,713 million yen, up 20.6% year on year
TOKYO, May 13, 2021 - LIFENET INSURANCE COMPANY (TSE Mothers 7157, President
Ryosuke Mori, URL: https://ir.lifenet-seimei.co.jp/en/) discloses financial results for fiscal 2020
ended March 31, 2021.
1．Overview of the financial results for fiscal 2020
(1) Business results
Condition of policies-in-force
Annualized premium*1 of new business in 4Q ended March 31, 2021 was 1,104 million yen(111.5% of 4Q of fiscal 2019). The number of new business was 26,918 (115.5% of 4Q of fiscal
2019). New business performance for fiscal 2020 recorded a historical high. Annualized
premium of new business for fiscal 2020 was 4,197 million yen (122.5% of fiscal 2019). The
number of new business for fiscal 2020 was 100,587 (124.3% of fiscal 2019). Regarding theimpact from the spread of the novel coronavirus disease (COVID-19) for fiscal 2020, it led to agreat increase in the new business in the short term under the state of emergency in April 2020
because of expanding consumers’ needs for life insurance.
Annualized premium of policies-in-force as of the end of March 31, 2021 stands at 18,713
million yen (120.6% of March 31, 2020). Sum insured of policies-in-force was 2,994,198 million
yen (116.7% of March 31, 2020). The number of policies-in-force resulted in a total of 439,945(120.5% of March 31, 2020). The number of policyholders was 279,243. Surrender and lapse
ratio*2 for fiscal 2020 was 6.0% (7.0% for fiscal 2019).
*1: Annualized premium is the amount of money equivalent to what is to be paid to have the insurance coverage for one
year. All payments for Lifenet products are in monthly installments, we calculate annualized premium as multiplying
the monthly premium by 12 months.
*2: The surrender and lapse ratio is the annual equivalent of the monthly number of policies surrendered and/or lapsed
divided by the monthly average number of policies-in-force.

Results of operations
Insurance premiums and other for fiscal 2020 increased to 20,282 million yen (123.3% offiscal 2019) due to an increase in premium income by growth of in-force business and anincrease in reinsurance income from modified co-insurance. Investment income was 433 million
yen (127.8% of fiscal 2019). Other ordinary income was 73 million yen. As a result, ordinary
income for fiscal 2020 amounted to 20,789 million yen (123.4% of fiscal 2019).
Insurance claims and other was 6,031 million yen (160.5% of fiscal 2019) mainly due to anincrease in reinsurance commissions from modified co-insurance. The ratio of insurance
payment amounts to insurance premiums was 19.5% for fiscal 2020, compared with 18.9% forfiscal 2019. Provision for policy reserves and other came to 6,310 million yen (124.4% of fiscal
2019). The ratio of provision for policy reserves to insurance premiums was 36.2% for fiscal
2020, compared with 35.1% for fiscal 2019. Operating expenses amounted to 10,030 million
yen (109.4% of fiscal 2019) mainly due to the investment in our marketing spend including
advertising. The components of operating expenses were 6,712 million yen in marketing
expenses (109.2% of fiscal 2019), 1,071 million yen in customer service expenses (120.1% offiscal 2019), and 2,246 million yen in system and other expenses (105.4% of fiscal 2019). Other
ordinary expenses was 1,503 million yen (139.0% of fiscal 2019) mainly due to share issuance
Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE
costs through overseas public offering in July 2020 and an increase in the consumption tax ratein October 2019. Consequently, ordinary expenses for fiscal 2020 totaled 23,879 million yen(124.2% of fiscal 2019).
As a result, ordinary profit totaled 3,089 million yen loss for fiscal 2020, compared with 2,382
million yen loss for fiscal 2019. Net income was 3,114 million yen loss, compared with 2,400
million yen loss for fiscal 2019.
In addition, fundamental profit, which is an indicator for the profitability of life insurancecompanies, amounted to 2,874 million yen loss, compared with 2,195 million yen loss for fiscal
2019, mainly due to an increase in operating expenses. The components of fundamental profit
were 3,274 million yen in mortality margin, 6,164 million yen loss in expense margin and 16 million
yen in interest margin.
We are participating in reinsurance transactions from fiscal 2019 by modified co-insurance onpart of new business to achieve continuous growth. By utilizing reinsurance appropriately, we willease the temporary burden imposed on statutory capital by expenses associated with new
business and maintain fiscal soundness. The reinsurance transactions are agreements thattransfer the risk and the profit (loss) structure of the reinsured business to the reinsurancecompany for a certain period of time. We receive ceding commission in accordance with the new
business costs associated with the reinsured business in the initial fiscal year. This leads to anincrease in ordinary income. On the other hand, after the ceding commission is recorded
reinsurance accounts receivable as asset, it is amortized by the profit generated from thereinsured business over following fiscal years. This leads to a decrease in ordinary profit and net
profit. Once the balance of reinsurance accounts receivable is amortized to zero, the reinsurance
agreement terminates, and subsequent profit on the reinsured business belongs to Lifenet.
Accordingly, the modified co-insurance for fiscal 2020 resulted in raising ordinary income by 2,778
million yen (2,034 million yen of fiscal 2019), ordinary profit by 804 million yen (1,526 million yen of
fiscal 2019), and net income by 804 million yen (1,526 million yen of fiscal 2019).
(2) Financial condition
Assets, liabilities and net assets
Total assets as of March 31, 2021 amounted to 54,501 million yen (41,144 million yen as ofMarch 31, 2020). The major account balance was 40,007 million yen in securities mainly
consisting of government bonds and corporate bonds with high credit ratings. Reinsurance
accounts receivable was 2,569 million yen including 2,352 million yen of the balance of
unamortized ceding commission for modified co-insurance.
Liabilities amounted to 38,694 million yen as of March 31, 2021 (31,744 million yen as ofMarch 31, 2020), owing to an increase in policy reserves. The major account balances were
35,801 million yen in policy reserves and 837 million yen in reserves for outstanding claims. In
terms of policy reserves, new business from fiscal 2018 onward has been transferred from 5year Zillmer’s method to standard policy reserves. The difference in policy reserves will be
resolved over five fiscal years, from fiscal 2018 to 2022, with the standing difference at the endof fiscal 2020 at 498 million yen.
Net assets amounted to 15,806 million yen as of March 31, 2021 (9,400 million yen as ofMarch 31, 2020) mainly due to raising new capital through overseas public offering despite therecording of net loss for fiscal 2020. It includes the effect of raising retained earnings due to theutilization of modified co-insurance. On the other hand, after the ceding commission is recorded
reinsurance accounts receivable as asset, it is amortized by the profit generated from thereinsured business over following fiscal years. This leads to a decrease in net assets
accordingly.
The solvency margin ratio as of March 31, 2021 was 2,647.1% (2,117.1% as of March 31,2020), which indicated that an adequate level of payment capacity was maintained.
Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE(3) Cash flows
For fiscal 2020, net cash provided by operating activities amounted to 2,937 million yen(1,613 million yen provided for fiscal 2019) mainly because of an increase in insurance
premium. Net cash used by investing activities amounted to 10,435 million yen (2,204 million
yen used for fiscal 2019) mainly due to acquisition of securities. Net cash provided by financing
activities amounted to 8,879 million yen (75 million yen provided for fiscal 2019) mainly due toissuance of new shares through overseas public offering in July 2020.
Based on these activities described above, cash and cash equivalents as of March 31, 2021
totaled 3,059 million yen (1,677 million yen as of March 31, 2020).
(4) Business forecasts
Business forecasts for fiscal 2021 ending March 31, 2022 are as follows. Lifenet discloses
ordinary income, ordinary profit (loss) and net income (loss).
Ordinary profit (loss)(In millions of yen)
Net income (loss)

25,500(3,800)(3,800)20,789(3,089)(3,114)

Ordinary income
Business forecasts
for fiscal 2021
(Reference)
Business results
for fiscal 2020
Change

22.7%

-

-

Lifenet aims for further in-force business growth by undertaking initiatives for the “innovationof customer experience” and “enhancement of promotion capabilities” as disclosed as priority
areas in the Management Policy to achieve the management goal. We will proactively invest in
marketing to aim for continuous growth, and also develop products and services from thecustomer perspective to respond promptly to changes in the business environment andcustomer behaviors under the COVID-19 pandemic.
We are participating in reinsurance transactions from fiscal 2019 by modified co-insurance
and continue to utilize the reinsurance in fiscal 2021. We expect the impact of these reinsurance
transactions on fiscal 2021 results forecasts to increase ordinary income by around 4,400
million yen, ordinary profit by around 700 million yen and net income by around 700 million yen,given that new business will be acquired as expected. This impact includes the effects ofamortization of reinsurance accounts receivable generated from reinsured business in past
years.
Accordingly, Lifenet is forecasting ordinary income of 25,500 million yen, ordinary profit of
3,800 million yen loss and net profit of 3,800 million yen loss for fiscal 2021, including theimpact of modified co-insurance. As the table below indicates, we project annualized premiumof policies-in-force of 21,800 million yen and annualized premium of new business of 4,400
million yen.
(Reference) Annualized premium(In millions of yen)
Policies-in-force
New businessBusiness forecasts

21,8004,400
for fiscal 2021
Business results
18,713
4,197
for fiscal 2020
Actual results of ordinary profit (loss) and net income (loss) may greatly diverge fromforecasts if the amount of insurance claims and benefits fluctuates beyond our expectation.

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NEWS RELEASE
In addition, future prospects remain uncertain due to COVID-19. Any items requiring disclosure
will be announced promptly.
(5) Dividend policy
Lifenet has yet to determine its specific dividend policies and dates for the start of distributing
retained earnings as dividends as we still record cumulative loss and will be prioritizing
strengthening our growth base to increase mid to long term profitability.
In the future, we will continue to target business expansion and profit generation byimplementing measures to increase recognition of the Company, developing new products andservices, and effectively utilizing financing for investment in systems and other aspects of thebusiness.
In addition to this, the Company will consider implementing measures to provide shareholder
return that include payment of dividends from future retained earnings after the company isturning a profit at the ordinary profit level in statutory accounting in the mid-2020s.
Lifenet's Articles of Incorporation stipulates that a decision on the distribution of retained
earnings as specified in each Item of Paragraph 1, Article 459 of the Companies Act can bemade by a resolution of the Board of Directors, except as otherwise determined by law.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

4NEWS RELEASE
2．Business policy(1) Basic management policy
Lifenet’s management philosophy is helping our customers embrace life more fully by offering
comprehensible, cost-competitive and convenient products and services based on the highest
levels of business integrity. With the internet as our main sales channel, we utilize technology
and strive to be the leading company driving the growth of the online life insurance market
through our customer-centric products and services.
(2) Target indicator
Lifenet regards European Embedded Value (EEV), noted in the management goals set in ourManagement Policy, as the important management indicator of corporate value.
We have also established three types of indicators for growth, profitability, and financial
soundness to supporting sustainable growth of EEV. The indicators for growth are the numberof policies-in-force and new business; the indicators for profitability are the operating expense
ratio (operating expenses excluding marketing expenses divided by insurance premium) andmarketing efficiency of new business; and the indicator for soundness is the solvency margin
ratio. We are also aiming to turn a profit at the ordinary profit level in statutory accounting in the
mid-2020s.
(3) Mid to long-term business strategy and challenges
We formulated our Management Policy in November 2018 and set the management goal ofachieving 100 billion yen in EEV over the medium term. The company continues to achieve
steady growth through initiatives in the two priority areas of “innovation of customer experience”
and “enhancement of promotion capabilities.” EEV has reached 95.1 billion yen as of March 31,
2021 and is getting closer to the management goal of 100 billion yen.
We have therefore upgraded our management goal to achieving 200 billion yen in EEV overthe medium term and will strive to achieve even greater growth and high profitability.
The policy is summarized below:
Summary of Management Policy
MissionHelp our customers embrace life more fully by offering comprehensible,
cost-competitive and convenient products and services

VisionBe the leading company driving the growth of the online life insurance
market⚫

Innovation of customer experience
Enhancing and evolving the quality of all services with digital

Priority areas

technology⚫

Enhancement of promotion capabilities
Generating massive customer traffic by active promotion andexpansion of agent sales and white label business

Management
goal

Aim to achieve EEV (indicator of corporate value) of 200 billion yen bybusiness growth in a mid-term

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

5NEWS RELEASE
Fiscal 2020 was a year in which the COVID-19 pandemic caused major changes inbehavioral patterns in society as a whole. Lifenet, which operates an online insurance business,sees these changes as a business opportunity to provide wider range of customers with our
products and services. We will utilize the growth capital we obtained through an overseas public
offering in July 2020 to focus on the priority areas and thereby achieve even greater growth andtransformation into Internet service company of life insurance.
Lifenet will therefore pursue the following initiatives to address challenges that we face.
ⅰ Response to COVID-19
COVID-19 has caused rapid changes in the business environment and behavioral patterns ofcustomers. Lifenet will develop systems and take other steps to enable the company to respondflexibly to these major changes and provide products and services that meet the needs of thetimes. From the perspective of employee workstyles, Lifenet will enhance internal structure thatmake it possible to improve productivity and operate our business efficiently while respecting
diversity. We will also implement initiatives aimed at reinforcing organizational strengths.
ⅱ Sustained Growth in In-force Business Performance
We aim to achieve double-digit growth in in-force business performance by sustained growthin new business performance and improvement in the surrender and lapse ratio. We will
implement initiatives in the priority areas of “innovation of customer experience” and“enhancement of promotion capabilities.”
To achieve “innovation of customer experience,” we will design and develop stress-free
products and services from the customer’s point of view and increase customer engagementwith the company to build long-term relationships of trust and expand in-force business. We willachieve high-quality communication through the means best suited to each customer andprovide products and services that meet their individual needs by focusing on digital data
analysis and through integrated management of customer contact points.
Lifenet also plans to launch new long-term disability insurance product Hataraku-Hito 3 inJune 2021. As the first company in the life insurance industry to start sales of long-term
disability insurance for individuals, in addition to just securing the risk of being unable to work,
we enhance coverage based on the novel concept of supporting recovery and a return to work.
We believe what Lifenet provide customers is not only life insurance coverage alone, but abetter customer experience in all processes where we interact with our customers. We pursue
the improvement of the value of that experience.
To achieve “enhancement of promotion capabilities,” we will provide Lifenet value to morecustomers through two channels: The Internet channel and the white label channel.
In the Internet channel, we will pursue marketing targeted mainly at young people in addition
to further enhancing brand power through ongoing investment in television commercials andeffective use of online advertising. In the white label channel, we will continue to utilize thebrand power of corporate partners to provide Lifenet products and services that arecomprehensible, cost-competitive, and convenient to the customer bases of the partners. Since
April 2020, we have been selling products through Seven Financial Service Co., Ltd., in addition
to selling au Life Insurance through KDDI CORPORATION. Lifenet has also entered a businessalliance with Money Forward, Inc. and will provide services with them from the summer of 2021.
ⅲ Transformation into a Internet Service Company of Life Insurance
Lifenet aims to be a leading company driving growth of the online insurance market and isaccelerating efforts to become an Internet service company of life insurance. More specifically,
we aim to build an online life insurance platform that connects customers with life insurance
services by utilizing the expertise and our website traffic we have accumulated since the
Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE
company was established.
As one part of that plan, our subsidiary, LIFENET MIRAI Inc., was established and will launch
online insurance agency business from July 2021. Our subsidiary is a joint venture of Lifenet
and MILIZE Inc. LIFENET MIRAI intends to utilize the AI and financial engineering technologythat MILIZE possesses to provide greater convenience in insurance sales while also offering thesolution regarding life insurance problems to customers with providing close-to-the-customer
services.
We will continue to invest in system infrastructure and will develop services for customers
more rapidly by utilizing the system infrastructure.
3. Basic Rationale for Selection of Accounting Standards
Lifenet is evaluating International Financial Reporting Standards (IFRS), assuming that wewill adopt IFRS in the future. Regarding the new accounting standards for insurance contracts(IFRS 17) which the International Accounting Standards Board (IASB) published, taking into
account the potential effect on the method of creating financial statements, we are continuously
conducting its study.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE
4. Non-consolidated Financial Statements(1) Balance Sheets(In millions of yen)March 31
2020

2021

Cash and deposits ·····························································

1,377

2,059

Cash ········································································

0－Bank deposits ····························································

1,377

2,059

Monetary claims bought ······················································

299

999

Money held in trust ·····························································

3,539

5,895

Securities ·········································································

32,05840,007

Government bonds ······················································

8,065

9,004

Municipal bonds ··························································

1,391

1,482

Corporate bonds ·························································

18,11921,301

Stocks ······································································

313

397

Foreign securities ························································

0

0

Other securities ··························································

4,167

7,821

Tangible fixed assets ··························································

96

95

Buildings ···································································

14

12

Leased assets ····························································

7

11

Other tangible fixed assets ············································

75

71

Intangible fixed assets ························································

742

1,252

Software····································································

597

520

Software in progress ····················································

144

732

Agency accounts receivable ·················································

9

9

Reinsurance accounts receivable ··········································

1,663

2,569

Other assets ·····································································

1,356

1,612

Accounts receivable ····················································

1,132

1,362

Prepaid expenses ·······················································

98

103

Accrued income ··························································

52

71

Deposits ····································································

73

73

Suspense payments ····················································

0

1

Total assets·························································

41,14454,501ASSETS

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE(In millions of yen)March 31
2020

2021

Policy reserves and other ····················································
Reserves for outstanding claims·····································

30,32836,639638

837

Policy reserves ···························································

29,69035,801

Agency accounts payable ····················································

55

69

Reinsurance accounts payable ·············································

225

301

Other liabilities···································································

882

1,234

Income taxes payable ··················································

3

3

Accounts payable ························································

35

71

Accrued expenses·······················································

775

1,082

Deposits received ·······················································

13

15

Lease liabilities ···························································

7

11

Asset retirement obligations ··········································

33

33

Suspense receipt ························································

13

16

Reserves under the special laws ···········································

56

76

Reserve for price fluctuations ········································

56

76

Deferred tax liabilities ·························································

195

373

Total liabilities ······················································

31,744

38,694

Capital stock ·····································································

12,20016,731

Capital surplus ··································································

12,20016,731

Legal capital surplus ····················································

12,20016,731Retained earnings ······························································(15,502)(18,616)

Other retained earnings ················································(15,502)(18,616)

Retained earnings brought forward ··························(15,502)(18,616)

Treasury shares ····································································－(0)

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

8,898

14,846

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

502

960

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

502

960

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

9,400

15,806

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

41,14454,501

LIABILITIESNET ASSETS

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

9

NEWS RELEASE(2) Statements of Operations

Ordinary income ·····················································
Insurance premiums and other····························
Premiums income ·····································
Reinsurance income ··································
Investment income ···········································
Interest, dividends and other income ·············
Interest from deposits ··························
Interest and dividends from securities ·····
Other interest and dividends ·················
Gain on money held in trust ························
Gain on sales of securities ·························
Other ordinary income·······································
Other ······················································
Ordinary expenses ··················································
Insurance claims and other ································
Insurance claims ·······································
Benefits ···················································
Other refunds ···········································
Reinsurance commissions ··························
Provision for policy reserves and other ·················
Provision for reserves for outstanding claims ··Provision for policy reserves ························
Investment expenses ········································
Interest expenses ······································
Loss on sales of securities ··························
Loss on valuation of securities ·····················
Foreign exchange losses ····························
Other investment expenses ·························
Operating expenses ·········································
Other ordinary expenses ···································
Taxes ······················································
Depreciation·············································
Other ······················································
Ordinary profit (loss) ················································
Extraordinary losses ················································
Provision of reserves under the special laws··········
Provision of reserve for price fluctuations ·······
Income (loss) before income taxes ·····························
Income taxes-current ···············································
Income taxes ·························································Net income (loss) ····················································(In millions of yen)
Year ended March 31
2020
2021
16,85020,78916,45520,282
13,982
16,892
2,473
3,389
339
433
291
320
0
0
291
320
0
0
31
110
16
2
55
73
55
73
19,23323,879
3,759
6,031
1,694
2,146
941
1,140
0
0
1,122
2,743
5,072
6,310
168
199
4,903
6,111
151
2
0
0
53
－
95
－
0
0
1
2
9,169
10,030
1,081
1,503
769
998
300
364
11
140
(2,382)(3,089)
13
20
13
20
13
20
(2,396)(3,109)4
4
4
4(2,400)(3,114)

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

10

NEWS RELEASE(3) Statements of Changes in Net Assets(In millions of yen)
Year ended March 31
2020
2021
Shareholders' equity:
Capital stock
Balance at the beginning of the year·······················
Changes of items during the period
Issuance of new shares ·································
Issuance of new shares-restricted stock ············
Issuance of new shares-exercise of subscription rights to shares
Total changes of items during the period ···········
Balance at the end of the period ····························
Capital surplus
Legal capital surplus
Legal capital surplus ·····································
Changes of items during the period
Issuance of new shares ·····························
Issuance of new shares-restricted stock ········
Issuance of new shares-exercise of subscription rights to shares ··Total changes of items during the period ·······
Legal capital surplus ···········································
Total capital surplus
Capital surplus ·············································
Changes of items during the period
Issuance of new shares ·····························
Issuance of new shares-restricted stock ········
Issuance of new shares-exercise of subscription rights to shares ··Total changes of items during the period ·······
Capital surplus ·············································
Retained earnings
Other retained earnings
Retained earnings brought forward
Retained earnings brought forward ··············
Total changes of items during the period
Net income (loss) ·································
Total changes of items during the period ···Retained earnings brought forward ··············
Total retained earnings
Retained earnings ······································
Changes of items during the period
Net income (loss) ···································
Total changes of items during the period ·····
Retained earnings ·····································
Treasury shares
Balance at the beginning of the year·······················
Changes of items during the period
Purchase of treasury shares ···························
Total changes of items during the period ···········
Balance at the end of the period ····························

12,136

12,200－20
42
63
12,200

4,502
20
8
4,531
16,731

12,136

12,200－20
42
63
12,200

4,502
20
8
4,531
16,731

12,136

12,220－20
42
63
12,200

4,502
20
8
4,531
16,731(13,101)(15,502)(2,400)(2,400)(15,502)(3,114)(3,114)(18,616)(13,101)(15,502)(2,400)(2,400)(15,502)(3,114)(3,114)(18,616)

－

－

－
－
－

(0)
(0)
(0)

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

11

NEWS RELEASE(In millions of yen)
Year ended March 31
2020
2021
Total shareholders' equity
Balance at the beginning of the year ······················
Changes of items during the period
Issuance of new shares ································
Issuance of new shares-restricted stock···········
Issuance of new shares-exercise of subscription rights to shares
Net income (loss) ········································
Purchase of treasury shares ··························
Total changes of items during the period ··········
Balance at the end of the period ····························

11,172

8,898

－
41
85
(2,400)－(2,273)
8,898

9,005
41
16
(3,114)(0)
5,948
14,864

600

502

(98)
(98)
502

457
457
960

600

502

(98)
(98)
502

457
457
960

11,773

9,400

－
41
85
(2,400)－(98)(2,372)
9,400

9,005
41
16
(3,114)
(0)
457
6,406
15,806

Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Balance at the beginning of the year ······················
Changes of items during the period
Net changes of items other than shareholders' equity ····

Total changes of items during the period ··········
Balance at the end of the period ····························
Total valuation and translation adjustments
Balance at the beginning of the year ······················
Changes of items during the period
Net changes of items other than shareholders' equity ····

Total changes of items during the period ··········
Balance at the end of the period ····························Net assets:
Balance at the beginning of the year ······················
Changes of items during the period
Issuance of new shares ·······························
Issuance of new shares-restricted stock ··········
Issuance of new shares-exercise of subscription rights to shares
Net income (loss) ·······································
Purchase of treasury shares ·························Net changes of items other than shareholders' equity ···Total changes of items during the period ·········
Balance at the end of the period ····························

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

12

NEWS RELEASE(4) Statements of Cash Flows(In millions of yen)
Year ended March 31
2020
2021
Cash flows from operating activities
Income (loss) before income taxes ···································
Depreciation and amortization ·········································
Increase (decrease) in reserves for outstanding claims ········
Increase (decrease) in policy reserves ······························
Increase (decrease) in reserve for price fluctuations ············
Interest, dividends and other income ································
Loss (gain) related to securities ·······································
Interest expenses ·························································
Share issuance costs ····················································
Decrease (increase) in agency accounts receivable·············
Decrease (increase) in reinsurance accounts receivable·······
Decrease (increase) in other assets <excluding assets for investing and financing activities > ··Increase (decrease) in agency accounts payable ····················
Increase (decrease) in reinsurance accounts payable ··········
Increase (decrease) in other liabilities <excluding assets for investing and financing activities > ··Other, net ····································································
Subtotal ······································································
Interest and dividends income received ·····························
Interest expenses paid ···················································
Income taxes (paid) refund ·············································Net cash provided by (used in) operating activities ··········Cash flows from investing activities
Purchase of money held in trust·······································
Purchase of securities ···················································
Proceeds from sales and redemption of securities ···················
Total of net cash provided by (used in) investment transactions ····
Total of net cash provided by (used in) operating activities and investment transactions ····
Purchase of tangible fixed assets ·····································
Purchase of intangible fixed assets ··································Net cash provided by (used in) investing activities ··········Cash flows from financing activities
Proceeds from issuance of shares ···································
Proceeds from issuance of stock resulting from exercise of subscription rights to shares ····
Purchase of treasury shares ···········································
Repayments of lease obligations ·····································Net cash provided by (used in) financing activities ··········Net increase (decrease) in cash and cash equivalents ·············Cash and cash equivalents, beginning of the year ···················Cash and cash equivalents, end of the year ···························

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

(2,396)
300
168
4,903
13
(291)
132
0
－
(2)
(1,593)
(197)
(17)
64
184
1
1,271
340
(0)
2
1,613

(3,109)
364
199
6,111
20
(320)
(2)
0
137
0
(906)
(235)
14
75
311
(69)
2,591
350
(0)
(4)
2,937

(450)
(4,030)2,690(1,789)
(175)
(56)
(358)
(2,204)(1,800)(9,518)1,713(9,605)(6,667)(39)(791)(10,435)

－
85
－
(9)
75
(514)
2,192
1,677

8,868
16
(0)
(4)
8,879
1,381
1,677
3,059

13

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 these products
and services directly to customers over the Internet. We aim to be the leading company driving
the growth of the online life insurance market.
Contact:
Investor Relations, Corporate Planning DepartmentTel:+81-3-5216-7900
e-mail: ir@lifenet-seimei.co.jp
Disclaimer: This is a summarized translation of the original Japanese document, prepared andprovided solely for readers' convenience. In case of any discrepancy or dispute, the Japanese
document prevails.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

14