T&D (8795) investor relations material

Sales Strategy Evolution and Digital Transformation

• Shift from traditional door-to-door sales to a hybrid model integrating face-to-face, TV, online, and app-based channels, expanding customer reach and improving productivity.

• Enhanced use of AI and digital tools (e.g., T-AI-Face) to support sales staff, analyze customer data, and tailor product proposals, resulting in significant productivity increases and higher average premiums per policy.

• Collaborations with PayPay and SoftBank leverage app-based insurance sales and AI-driven call centers, targeting new customer segments and operational efficiency.

• Branch management reforms reduced administrative tasks, reallocated resources to sales support, and implemented block-based performance management, leading to higher new contract ANP per sales staff.

• Ongoing expansion of sales staff, with numbers rising from 8,000 pre-COVID to over 9,900, targeting 10,000 by year-end, and productivity gains especially among less experienced staff.

Product and Channel Strategy

• Focus on protection-type products for seniors, including customizable, dementia, and cancer coverage, with plans to restart single-premium whole life insurance sales in 2026.

• Bancassurance channel restructured to reduce surrender risk, shifting to low-interest products and targeting credit union customers, with prudent sales volumes amid rising interest rates.

• Consultative sales and total coverage proposals for SMEs and business succession needs have driven steady growth in new policy amounts.

• Expansion of non-insurance services (e.g., Dodai, Kenko Support Program) to build relationships with SMEs and employees, aiming to diversify profit sources and support long-term business sustainability.

• Direct lead channels and hybrid sales have contributed to about 40% growth in protection-type new business ANP from 2019 to 2025.

Financial Performance and Profitability Initiatives

• Significant growth in sales performance post-COVID, with ANP and policy amounts reaching record highs, but surrender and lapse rates remain a challenge, especially for contracts sold during low interest rates.

• Structural shift underway to reduce reliance on legacy annuity products and increase the share of protection and savings-type products, targeting a reduction in annuity proportion from 40% to 30% by 2030.

• New Key Performance ANP KPI introduced to drive sustainable profit growth across protection and savings products.

• Improved product margins through expense management, advanced underwriting, and investment yield enhancements, with group-wide focus on AI and digital transformation to manage rising personnel and system costs.

• Adjusted profit and ROE trended upward, supported by reinsurance and higher interest rates, despite temporary declines from COVID-19 impacts.