Lifenet Insurance Company (7157) Q1 2025 earnings summary

Executive summary

• Achieved strong growth in key indicators for 1Q FY2024, with Comprehensive Equity up 18.3% YoY to ¥161,022mn and annualized premium of policies-in-force up 20.9% to ¥29,507mn.

• Insurance revenue rose 23.2% YoY to ¥6,776mn, driven by growth in individual life and GCL insurance.

• Net income attributable to owners increased 6.9% YoY to ¥1,887mn for 1Q FY2024.

• GCL business drove growth, recording profit for the first time and benefiting from a premium rate revision.

• Launched new dementia insurance product in April 2024 and renewed marketing to target younger demographics.

Financial highlights

• Comprehensive Equity rose to ¥161,022mn, up 18.3% YoY, driven by GCL contracts value and net income.

• Annualized premium of policies-in-force increased to ¥29,507mn, up 20.9% YoY, with GCL contributing ¥3,735mn.

• Insurance service results for 1Q FY2024 were ¥2,340mn (up 2.9% YoY), with a 26.3% progress rate toward the full-year forecast.

• Net income attributable to owners was ¥1,887mn, up from ¥1,765mn in 1Q FY2023.

• Interest income increased to ¥237mn, offsetting lower valuation gains from stock sales.

Outlook and guidance

• FY2024 forecasts remain unchanged: annualized premium of policies-in-force expected at ¥34,000mn, insurance service results at ¥8,900mn, and net income at ¥6,200mn.

• Mid-term plan targets Comprehensive Equity of ¥200-240bn and stock price above ¥3,000 by FY2028, with a 10% annual growth rate in CE per share.

• Focus on expanding GCL through new partner banks and leveraging digital transformation in banking.