Daiichi Life Group (8750) Q4 2026 earnings summary

Executive summary

• Adjusted profit reached JPY 551.5 billion for FY2025, up 25% year-over-year and surpassing estimates, driven by favorable economic conditions, interest rate hikes, and strong stock performance.

• All business segments, including domestic, international, and non-insurance, exceeded forecasts and contributed to profit growth.

• Net income attributable to shareholders fell 4.8% year-over-year to JPY 436.6 billion, mainly due to new U.S. insurance accounting standards at Protective Life.

• Core business achieved record profit for the third consecutive year, with adjusted ROE at 12.7%, meeting the FY2026 target ahead of schedule.

• The company changed its trade name to Daiichi Life Group, Inc. on April 1, 2026.

Financial highlights

• Group adjusted profit grew 25% year-over-year to JPY 551.5 billion, mainly from Dai-ichi Life, Protective, and asset management.

• Net income for FY2025 was JPY 436.6 billion, impacted by LDTI adoption, which restated FY2024 figures.

• Group EV increased by 18% to JPY 9.7 trillion, mainly due to gains in domestic equities.

• Ordinary revenues rose 14.5% year-over-year to JPY 11,308.2 billion, driven by higher premium and investment income.

• Comprehensive income rebounded to JPY 817.6 billion from a loss of JPY 75.6 billion in the prior year.

Outlook and guidance

• FY2026 adjusted profit is estimated at JPY 560 billion, marking a record high for the fourth consecutive year.

• Dividend per share for FY2025 set at JPY 54.5, with FY2026 DPS projected at JPY 72, a 32% increase, and payout ratio raised to 50%.

• For FY2027, ordinary revenues are forecast to decrease 5.7% to JPY 10,666.0 billion, but ordinary profit and net income are expected to rise to JPY 869.0 billion (+15.3%) and JPY 513.0 billion (+17.5%), respectively.

• Net income per share is projected at JPY 142.46 for FY2027.

• International business, especially TAL and Vietnam, expected to drive substantial profit improvement.