Daiichi Life Group (8750) Q1 2027 earnings summary

Executive summary

• Group adjusted profit reached ¥158.1 billion, up 113% year-over-year, driven by improved portfolio rebalancing, higher gains from domestic equities, and strong domestic operations.

• Net income rose 368% year-over-year to ¥160.1 billion, reflecting improved investment income and capital gains.

• Ordinary revenues increased 25.3% year-over-year to ¥2,893.0 billion, supported by higher premium income and investment returns.

• Comprehensive income increased 136% year-over-year to ¥427.8 billion.

Financial highlights

• Group new business ANP was ¥135 billion, a 6.7% year-over-year increase (3.9% excluding FX impact).

• Value of new business for domestic entities was ¥20 billion, down 26% year-over-year due to a model change.

• Group EV rose to ¥9.85 trillion, up 2% from the previous period, mainly due to higher domestic equity valuations.

• Group ESR stood at 206%, 13 points lower than the previous term, reflecting increased required capital and mass lapse risk.

• Net income per share for the quarter was ¥44.44, up from ¥9.31 a year earlier.

Outlook and guidance

• Full-year adjusted profit forecast remains unchanged at approximately ¥560 billion, with first quarter progress at 28%.

• Fiscal year ending March 31, 2027, forecasts: ordinary revenues of ¥10,666.0 billion (down 5.7%), ordinary profit of ¥869.0 billion (up 15.3%), and net income attributable to shareholders of ¥513.0 billion (up 17.5%).

• Dividend payout ratio target raised to at least 50% of average group adjusted profit over three years, with annual dividend forecast at ¥72.00 per share.

• Results may fluctuate depending on future interest rates and market conditions.