While individual insurance policies generate stable premium income over the whole term of each policy because future premiums are determined at the time of contract issue, the profitability per amount of coverage tends to be lower for GCL than for individual life, because premiums of GCL are reviewed annually according to the composition of the insured and recent claim experience.

In addition, while individual insurance policies incur expenses such as advertising and agency commissions when acquiring new policies, GCL does not incur such expenses because it is automatically added to the policy when the mortgage loan is concluded, such expenses are not loaded in the premium base.

By combining both businesses, which have different characteristics, we will continue to aim for higher growth and profitability.
 

We have cherished LIFENET Manifesto since business commencement in 2008. In the area of sustainability, we place importance on the concept of mutual support, which is the original purpose of life insurance, and we promote initiatives for each stakeholder based on the belief that the growth of our business itself will lead to a better future.

As an example of our most recent efforts, we have disclosed our performance in fiscal 2022 for “customer-oriented business conduct principles” and greenhouse gas emissions for the first time, and developed policies of human resources development and internal environmental improvement to maximize the potential of our employees.
In addition, we are working to further strengthen corporate governance, which is the foundation of management, by adopting new non-financial indicators for directors’ performance-linked compensation from this fiscal year.

 

As our first group credit life insurance business since business commencement, we began offering group credit life insurance to au Jibun Bank mortgage loan borrowers from July, 2023.

The main feature of this insurance product is that it provides various types of diseases coverage in addition to death coverage, providing solid support for mortgage payments over the long term.
To this end, we will first strive to steadily grow our cooperation with au Jibun Bank, and in the medium term, we will also aim to expand the number of partner banks.
We disclose preliminary report of annualized premium of policies-in-force for group credit life in monthly disclosure.

We have taken on new initiatives such as the introduction of IFRS and the launch of group credit life and will continue to pursue growth to expand the scale of our business while capturing the structural trend toward the digitization of financial services.

The summary is as follows.

Summary of Management Policy

We aim to reaccelerate the growth of internet channel over the mid to long term through initiatives in the two priority areas of “innovation of customer experience” and “enhancement of promotion capabilities” .
By taking advantage of our unique position as an independent company and the leading company in the online life insurance market, we will actively engage in collaboration with partner companies and aim to expand online life insurance market. With a view to mid to long term growth in the future, in fiscal 2023, we will strengthen our individual insurance businesses with partner companies and our platform businesses, as well as expand new business domain, group credit life insurance business.
 

See details of Challenges “Reaccelerating of the mid to long term growth of Internet channel” and “Expanding the online life insurance market through collaboration with partners”
 

We have disclosed our financial results and reporting in accordance with the current statutory accounting standards until fiscal 2022. However, due to the characteristics of the statutory accounting, it is difficult to accurately represent the actual mid- to long-term profitability of our business.

See details of Profit Structure under Current Statutory Accounting.

To address this issue, our adoption of IFRS 17 is intended to better present our periodic results and provide financial information that is more comparable internationally.  The application of IFRS will allow us to defer a portion of the cost for acquiring new business over the life insurance term, which will more appropriately represent the actual long-term profitability of life insurance compared to the  statutory accounting（J-GAAP）.

See details of Material for IFRS Study Meeting.