Daiichi Life Group (8750) Q3 2026 earnings summary

Executive summary

• Group adjusted profit for Q3 reached ¥422.2 billion, up 17% year-over-year and achieving 90% of the full-year plan, driven by higher-than-expected interest and dividend income.

• Full-year group adjusted profit forecast was revised upward to a record ¥500 billion, with dividend per share (DPS) raised to ¥52.

• Ordinary revenues rose 6.1% year-over-year to ¥8,320.7 billion for the nine months ended December 31, 2025, driven by higher investment income.

• Value of new business for three domestic entities increased 27% year-over-year to ¥105 billion.

• Comprehensive income surged 185.5% year-over-year to ¥770.5 billion, reflecting significant gains in securities.

Financial highlights

• Q3 group adjusted profit was ¥422.2 billion, with a 17% year-over-year increase, marking a record high.

• Ordinary revenues rose 6% YoY to ¥8,320.8 billion for Q3 YTD; net income increased 5% YoY to ¥370.3 billion.

• Group EV increased by 18% to ¥9.6 trillion, and ESR rose to 213%, up 3 percentage points from the previous year.

• Dividend per share increased by ¥1 to ¥52, with a payout ratio of 45% for FY2025 and plans to raise to 50% from FY2026.

• Net assets increased 17.6% from March 31, 2025, to ¥4,079.5 billion, with net unrealized gains on securities up 54.4% to ¥1,627.9 billion.

Outlook and guidance

• Full-year group adjusted profit forecast raised to ¥500 billion, a record high, supported by strong earnings momentum and higher domestic equity sales.

• Dividend per share forecast for the year ending March 31, 2026, is ¥52.00 (post-share split basis).

• Payout ratio to be increased to 50% from FY2026, targeting 12% adjusted ROE.

• Next fiscal year's sales plan for Japanese equity sales will align with this fiscal year, aiming for ¥2.8 trillion by end of FY2026.

• Full-year ordinary revenues are forecast to rise 12.1% to ¥11,067.0 billion, with net income expected to decline 5.0% to ¥408.0 billion.