Overview of the Mid-term Business Plan

We have formulated a new five-year mid-term business plan to FY2028. Following the adoption of International Financial Reporting Standards (IFRS) in FY2023, we have set “comprehensive equity” linked to our IFRS financial statements as the principal management indicator of our corporate value. The new plan sets a target for comprehensive equity of ¥200 billion to ¥240 billion by FY2028.

FY2028 targets

Table showing Lifenet’s management, financial, and non-financial targets. The management target is to reach comprehensive equity of ¥200 billion to ¥240 billion.
Table showing Lifenet’s management, financial, and non-financial targets. The financial target is a stock price of at least ¥3,000 and an annual growth near 10% for comprehensive equity per share.
Table showing Lifenet’s management, financial, and non-financial targets. The non-financial target is continuous improvement in the overall engagement score. As an indicator of diversity, the target is a 30%+ ratio of women decision-makers and 15%+ ratio of decision-makers under 30. Continuous improvement in the engagement score for growth is used as an indicator of growth opportunity.
  • Decision-makers are directors and employees at the department head level and above.

Growth strategy

To achieve our growth target for FY2028, the new mid-term plan sets the three priority areas of Tech & Services, Rebranding, and Embedded for growth and human resources strategy that will be key for the Company’s next stage of growth.

Connections between our businesses and the priority areas

Table showing the connections between our businesses and the priority areas. The table shows the connections between the individual insurance business (direct business), individual insurance business (partner business), and group credit life insurance business and the three priority areas of Tech & Services, Rebranding, and Embedded. At the base of the diagram is a section for the human resources strategy that supports the priority areas.

Unlocking online life insurance market potential with our virtuous cycle of our No.1 position and increasing partner businesses

Our customers, particularly younger-aged customers, have responded favorably to our direct businesses, supporting steady growth. The market niche we established with the direct business has opened a new business channel of using partner businesses, which we initiated in 2016 with KDDI Corporation and have continued to broaden across other industries. The new channel is triggering a virtuous cycle in which working with more partners increases the market for online life insurance, giving us more room to grow our overall business. We plan to accelerate our business growth by further anchoring our position as the No. 1 online life insurance company in Japan and embedding our services in the ecosystems of our partners.

Growth cycle of the online life insurance market

Diagram showing the growth cycle of the online life insurance market. Growth cycle at the center is surrounded by Rebranding (strengthening our position as the Number 1 online life insurer), Embedded (embed our services in partner ecosystems), and Tech & Services (enhancing service quality), which will all contribute to market expansion.

Previous Management Policy results and new targets

The previous Management Policy launched in 2018 prioritized investing in “innovation in the customer experience” and to “strengthen our sales capabilities” to drive the growth of the online life insurance market. In the direct individual insurance business, we focused on improving our website’s user interface and experience and conducted an aggressive marketing campaign that produced a significant increase in policies in force. We also stepped up efforts to form partner alliances across different industries with the intention of forming a base for a virtuous cycle that will generate continuing growth in the online insurance market. In addition, we activated Group synergies with partner company KDDI Corporation to launch group credit life insurance operations.

 

In FY2024, we launched a new Mid-term Plan, set a new outcome goal, and updated our Management Policy to reflect our business performance and the current business environment and to renew our efforts to address material social issues so we can continue generating strong business growth in the future.

Diagram showing the growth strategy and targets for online life insurance. From 2018 to 2023, Lifenet aimed to become the leading online life insurer, and from 2024 to 2028 we be the leading online life insurer creating the future of life insurance. Our priority areas will be innovation of the customer experience, enhancement of our promotion capabilities, Tech & Services, Rebranding, and Embedded. Our management target is comprehensive equity of ¥200 billion to ¥240 billion.