Daiichi Life Group (8750) Q4 2024 earnings summary

Executive summary

• Group adjusted profit rose 87% to ¥319.3bn; net income increased 85% to ¥320.7bn, while parent-attributable net income reached ¥320.8bn.

• New-business ANP grew 28% to ¥502.9bn, while Group VNB fell 30% to ¥54.5bn.

Financial highlights

• Ordinary revenues rose 16.0% to ¥11,028.2bn and ordinary profit increased 39.1% to ¥539.0bn.

• Premium and other income rose 13.1% to ¥7,526.4bn, mainly on higher Dai-ichi Frontier Life sales; investment income increased 33.0% to ¥3,034.0bn.

• Ordinary expenses rose 15.0% to ¥10,489.2bn, including a ¥1,877.4bn provision for policy reserves and others, versus ¥15.3bn in the prior year.

• Comprehensive income was ¥1,425.2bn versus a ¥1,344.0bn loss, primarily reflecting a ¥991.0bn after-tax increase in unrealized securities gains.

• Total assets rose 9.6% to ¥67,540.3bn and net assets increased 45.9% to ¥3,882.2bn; net unrealized securities gains, net of tax, reached ¥1,733.9bn.

Outlook and guidance

• Group adjusted profit forecast: ~¥340.0bn, supported by securities-sale gains at DL, lower new-business costs at DFL and recovery at PLC.

• Group VNB forecast: ~¥105.0bn, driven by DL sales recovery and larger TAL group policies, partly offset by lower DFL sales.

• FY2025 forecast: ordinary revenues ¥8,922.0bn, down 19.1%; ordinary profit ¥562.0bn, up 4.3%; parent-attributable net income ¥323.0bn, up 0.7%.

• FY2025 lower revenue forecast mainly reflects reduced DFL sales; profit growth is driven mainly by recovery at PLC. DPS forecast is ¥122 per share.