Dai-ichi Life Holdings (8750) Q1 2026 earnings summary

Executive summary

• Group adjusted profit for Q1 was JPY 74.2 billion, down 49% year-over-year, mainly due to the absence of last year's temporary effects, one-off equity sales gains, and front-loaded bond sales losses in the domestic business, but full-year targets remain achievable.

• Overseas business, especially PLC in the US, showed strong progress, offsetting yen appreciation; non-insurance businesses performed in line with expectations.

• Ordinary revenues fell 23.4% year-over-year to ¥2,294.1 billion, mainly due to lower investment income in overseas subsidiaries.

• Regulatory approval for investment in Challenger, expected to contribute JPY 10 billion annually from August 2025.

• Comprehensive income rose 43.7% to ¥199.2 billion, driven by a significant increase in net unrealized gains on securities.

Financial highlights

• Group adjusted profit for Q1: JPY 74.2 billion, down 49% from the same period last year; ordinary revenues fell 23% to ¥2,294.1 billion; net income dropped 68% to ¥43.2 billion.

• Domestic business profit: JPY 42.7 billion; international business profit: JPY 33.3 billion.

• Value of new business for domestic life companies was about ¥27.0 billion, down ¥3.0 billion year-over-year.

• Net unrealized gains on securities, net of tax, increased 20.2% to ¥1,267.2 billion.

• Dividend per share for FY2025 is forecast at ¥48 (¥192 before stock split), with share buybacks up to ¥100 billion.

Outlook and guidance

• Full-year group adjusted profit forecast is ca. ¥410 billion, with adjusted ROE expected to remain above 10%.

• Full-year profit targets remain on track despite Q1 seasonality and front-loaded losses.

• Group value of new business projected to reach ca. ¥190 billion, driven by new product launches and higher sales.

• Dividend forecast for FY2026 is ¥48.00 per share, post-share split.

• Insurance P&L for 2025 expected to decline by JPY 40 billion year-over-year, with temporary cost factors expected to wane after 2026.