Lifenet Insurance Company (7157) Q2 2025 earnings summary

Executive summary

• Comprehensive equity reached ¥164,974mn, up 7.9% year-over-year, driven by GCL contracts and net income growth.

• Annualized premium of policies-in-force rose 19.5% year-over-year to ¥32,559mn, with GCL as the main growth driver.

• Net income for 1H FY2024 was ¥3,152mn, up 14.3% year-over-year.

• Surrender and lapse ratio improved to 5.8% from 6.7% year-over-year, indicating better policy retention.

• Launched new online medical insurance for younger customers and announced GCL for joint mortgage to support homebuyers.

Financial highlights

• Insurance service results for 1H FY2024 were ¥4,565mn, up 11.7% year-over-year, representing 51.3% progress toward the annual forecast.

• Net income before income taxes was ¥4,378mn, up 11.5% year-over-year.

• Financial results declined by ¥123mn year-over-year, mainly due to exchange losses from a strong yen, despite higher interest income.

• Total assets reached ¥117,087mn, with equity at ¥93,925mn as of September 30, 2024.

• Solvency margin ratio stood at 1,793.0%–1,917.1% as of September 30, 2024, indicating strong capital adequacy.

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.

• Plans to transition to TSE Prime Market by around 2025 and further improve capital market evaluation.