Daiichi Life Group (8750) Status update summary

Mid-to-long-term strategy and progress

• Aims to become a global top-tier insurance group and industry leader by 2030, with interim 2026 goals including capital efficiency above cost of capital, JPY 450 billion group adjusted profit, and doubling market capitalization from 2023 levels.

• Achieved group adjusted profit and ROE targets for the end of the management plan period in the first year, prompting upward revisions and plans to further raise profit targets for FY2030.

• Strategic investments in international and asset management businesses, including TAL (Australia), Capula (UK), and M&G (UK), to diversify risk and enhance capital efficiency, with an ongoing investment pipeline in insurance, asset management, and new business areas.

• Board discussions emphasize expanding international insurance, capital-light business models, and asset management, with ongoing debate on optimal business portfolio composition and resource allocation.

• Market remains skeptical about growth potential despite strong profit increases, highlighting the need for clearer communication and faster execution to achieve ambitious 2030 targets.

Capital efficiency and profit growth

• Adjusted ROE surpassed the 10% target, driven by increased group adjusted profit, but 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 and comprising over one-third of the board; 46.6% are independent outside directors and 33.3% represent diversity in gender/nationality.

• Board actively monitors progress on strategic initiatives, capital efficiency, and risk management, with regular reporting from CFO and CRO.

• Annual board effectiveness assessments are conducted, with recent third-party evaluation confirming above-average effectiveness and improvements in reporting and strategy discussions.

• Emphasis on high-level monitoring and follow-up on action plans for group entities, with strengthened CXO functions and integrated risk management.