Lifenet Insurance Company (7157) Q4 2025 earnings summary

Executive summary

• Annualized premium of policies-in-force rose 20.1% year-over-year to ¥34,518mn, with insurance service results up 16.5% to ¥9,576mn, driven by higher CSM release and GCL profit.

• Net income attributable to owners increased 4.5% year-over-year to ¥5,993mn, despite higher income tax expense from a new special defense corporation tax.

• Comprehensive Equity (CE) increased steadily to ¥167,090mn, up 4.6% year-over-year, despite market and tax headwinds.

• Reaccelerating investment for growth in FY2025 after three years of restraint, with a new management team transition planned.

• GCL premiums and contract value grew sharply post-rate revision, with GCL premiums up 129.7% year-over-year.

Financial highlights

• Insurance revenue reached ¥30,081mn, up 21.8% year-over-year; individual life contributed ¥24,283mn, GCL ¥5,797mn.

• Surrender and lapse ratio improved to 5.7% from 6.5% in the prior year.

• Net income before income taxes was ¥9,179mn, up 11.2% year-over-year.

• Total assets increased to ¥116,178mn from ¥112,417mn a year earlier.

• Cash and cash equivalents declined to ¥17,234mn from ¥24,423mn, mainly due to higher investment in securities.

Outlook and guidance

• FY2025 forecast: annualized premium of policies-in-force ¥37,500mn, insurance revenue ¥33,000mn, insurance service results ¥9,800mn, net income ¥6,900mn.

• Reaccelerating marketing investment in FY2025 to boost individual life performance and enhance customer experience.

• Focus areas include Tech & Services, Rebranding, and Embedded strategies.

• Targeting CE of ¥200–240bn and stock price of ¥3,000+ by FY2028.