Lifenet Insurance Company (7157) Investor presentation summary

Market performance and valuation

• Comprehensive Equity (CE) and CE per share have shown steady medium- to long-term growth, but the PCE ratio remains below 1.0x, indicating undervaluation by the market.

• Stock price increased through FY2025 but declined recently due to changing market expectations after shareholder changes and CE progress.

• ROE is in line with the cost of capital (8.6% vs. 7-9%), but the company aims to further improve ROE through profit growth.

• PBR remains above 1.0x, but the market has not fully recognized the value of in-force insurance contracts reflected in CE.

Strategic initiatives for value enhancement

• Focus on growing CE by expanding individual life and group credit life (GCL) businesses, rebranding, and leveraging technology.

• Strengthening partnerships, including new alliances with major companies, to expand distribution and embedded insurance offerings.

• Improving efficiency in insurance acquisition cash flows and operating expenses to drive profitability.

• Setting a FY2028 stock price target of ¥3,000+ and introducing stock-based compensation for management and employees.

Corporate governance and sustainability

• Enhancing corporate governance with a high ratio of independent and women directors, and regular board reporting on investor dialogue.

• Promoting sustainability by integrating non-financial targets, such as employee engagement and diversity, into the mid-term plan.

• Risk profile is focused on life insurance risk, which is less sensitive to market volatility, supporting a lower cost of capital.