Daiichi Life Group (8750) Status update summary

Mid-to-long-term strategy and progress

• Aims to become a global top-tier insurance company and industry leader by FY2030, with interim FY2026 goals including capital efficiency above cost of capital, JPY 450 billion group adjusted profit, and doubling market capitalization from FY2023 levels.

• Achieved group adjusted profit and ROE targets for the management plan period in the first year, prompting upward revisions and a more aggressive approach to strategic investments.

• Plans to further raise profit targets for FY2030, reflecting ambition to close the gap with global competitors.

• The business portfolio is being designed to maximize returns across domestic, international, protection, savings, investment, and non-insurance domains.

• Investment pipeline includes acquisitions and investments in insurance, asset management, and new business areas, aiming for a diversified and efficient portfolio.

Capital efficiency and profit growth

• Adjusted ROE surpassed the 10% target, driven by increased group adjusted profit, though higher domestic interest rates have offset some risk-reduction benefits.

• Ongoing risk reduction through equity sales and disciplined capital allocation across domestic, overseas, and non-insurance businesses.

• FY2026 profit targets revised upward, with a focus on both speed of revenue contribution and business growth.

Corporate governance and board oversight

• Governance structure includes Audit and Supervisory Committee, Nominations and Remuneration Advisory Committees, with outside directors chairing key committees.

• Board comprises a balanced mix of internal and outside directors, with 46.6% independent outside directors and 33.3% diversity in gender/nationality.

• Board regularly monitors business progress, capital adequacy, and risk management, with quarterly performance and risk reports from CFO and CRO.

• Annual board effectiveness assessments are conducted, with recent third-party evaluation confirming above-average effectiveness.

• CxO system strengthened with both internal and external talent, enhancing expertise in key areas such as IT, DX, and AI.