Dai-ichi Life Holdings (8750) Q4 2025 earnings summary

Executive summary

• Group adjusted profit rose 38% year-over-year to ¥439.5bn, surpassing FY2026 targets ahead of schedule, driven by favorable economic conditions, higher equity prices, and a weaker yen.

• Ordinary revenues decreased by 10.5% year-over-year to ¥9,873.2bn, mainly due to lower sales at Dai-ichi Frontier Life and reduced investment income.

• Net income attributable to shareholders increased 34% to ¥429.6bn, driven by improved investment income at Dai-ichi Life Insurance.

• Value of new business (VNB) surged 61% year-over-year to ¥172.4bn, with strong contributions from both domestic and overseas subsidiaries.

• Strategic capital allocation included investments in Challenger (Australia) and Capula (UK), a reinsurance transaction at PLC, and divestiture of the Thai business.

Financial highlights

• Ordinary profit rose 33% to ¥719.1bn; net income per share was ¥115.95 (post-split).

• Group EV declined by 4% to approximately ¥8,170bn, mainly due to lower stock prices and goodwill from acquisitions.

• Group VNB increased 62% to ¥172.4bn, with new business margin up 1.02 percentage points to 2.71%.

• Solvency margin ratio decreased to 643.4% from 692.6% at the group level.

• Total assets grew 3% to ¥69,592.9bn, while total net assets declined 10.6% to ¥3,469.7bn.

Outlook and guidance

• FY2025 group adjusted profit is forecast at ¥410bn (down 7% YoY), with adjusted ROE expected to remain above 10%.

• FY2026 forecast: ordinary revenues to decrease 7.2% to ¥9,162.0bn, ordinary profit to fall 14.2% to ¥617.0bn, and net income attributable to shareholders to decline 19.2% to ¥347.0bn.

• Group VNB is projected to reach approximately ¥190bn, driven by new product launches and sales recovery at DL.

• FY2025 DPS is forecast at ¥48 (¥192 pre-split), with a payout ratio of 45% and potential for additional flexible payouts.