02 24-14 dai-ichi-life results-q3-2

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02 24-14 dai-ichi-life results-q3-2

  1. 1. February 13, 2014 Financial Results for the Nine Months Ended December 31, 2013  The Dai-ichi Life Insurance Company, Limited (the "Company" or the "Parent Company"; President: Koichiro Watanabe) announces its financial results for the nine months ended December 31, 2013. [Contents] Financial Summary for the Nine Months Ended December 31, 2013 1. Business Highlights 2. Investment Results of General Account 3. Unaudited Quarterly Non-Consolidated Balance Sheet 4. Unaudited Quarterly Non-Consolidated Statement of Earnings 5. Breakdown of Ordinary Profit (Fundamental Profit) 6. Solvency Margin Ratio 7. Status of Separate Account 8. Consolidated Financial Summary --------------------------------------------------------- P.1 P.3 P.6 P.7 P.9 P.10 P.11 P.12 For further information please contact: Corporate Planning Dept., The Dai-ichi Life Insurance Company, Limited TEL: +81-(0)-50-3780-7731/6942 Please note that this is an unofficial translation of the original disclosure in Japanese.
  2. 2. 1. Business Highlights (1) Sum Insured of Policies in Force and New Policies Policies in Force As of March 31, 2013 Number of policies (thousands) Individual insurance Individual annuities Individual insurance and annuities Group insurance Group annuities Note: 1. 2. 11,442 1,431 12,874 - Amount (billions of yen) 133,344.7 8,516.8 141,861.5 48,766.6 6,146.1 As of December 31, 2013 Number of policies Amount (thousands) 11,474 1,464 12,938 - % of March 31, 2013 total 100.3 102.3 100.5 - (billions of yen) 129,872.0 8,725.3 138,597.3 48,482.2 6,338.2 % of March 31, 2013 total 97.4 102.4 97.7 99.4 103.1 Policy amount in force of individual annuities is equal to (a) the funds to be held at the time annuity payments are to commence for an annuity for which payment has not yet commenced, and (b) the amount of policy reserve for an annuity for which payments have commenced. Policy amount in force of group annuities is equal to the amount of outstanding corresponding policy reserve. New Policies Number of policies (thousands) Nine months ended December 31, 2012 Individual insurance Individual annuities Individual insurance and annuities Group insurance Group annuities 868 82 951 - Nine months ended December 31, 2013 Individual insurance Individual annuities Individual insurance and annuities Group insurance Group annuities 809 67 876 - Note: 1. 2. 3. Amount 93.2 81.7 92.2 - (billions of yen) New Business Net increase by conversion 4,837.9 563.4 5,401.3 218.6 0.0 % of December 31, 2012 total 4,424.2 570.7 4,994.9 218.6 0.0 413.6 (7.2) 406.3 - 4,869.9 456.9 5,326.8 228.7 0.2 4,587.7 462.4 5,050.2 228.7 0.2 282.1 (5.5) 276.5 - % of December 31, 2012 total 100.7 81.1 98.6 104.6 545.7 Number of new policies is the sum of new business and policies after conversion. Amount of new policies for individual annuities, both new business and net increase by conversion, is equal to the funds to be held at the time annuity payments are to commence. Amount of new policies for group annuities is equal to the initial premium payment. (Reference) Surrenders and lapses in individual insurance and annuities (billions of yen) Amount of surrenders and lapses Surrender and lapse rate (%) Nine months ended December 31, 2012 4,983.4 3.41 Nine months ended December 31, 2013 4,635.7 3.27 Note: 1. The amount of lapses is not offset by the amount of lapses which are reinstated. 2. The table above excludes cases where the sum insured is decreased or riders are surrendered for in-force contracts. -1- The Dai-ichi Life Insurance Company, Limited
  3. 3. (2) Annualized Net Premiums Policies in Force (billions of yen) As of March 31, 2013 Individual insurance Individual annuities Total Medical and survival benefits As of December 31, 2013 1,663.1 362.7 2,025.9 522.5 1,647.7 371.4 2,019.1 536.2 New Policies Total Medical and survival benefits Note: 1. 2. 3. 99.1 102.4 99.7 102.6 (billions of yen) Nine months ended December 31, 2012 Individual insurance Individual annuities % of March 31, 2013 total Nine months ended December 31, 2013 76.8 19.2 96.1 30.6 74.5 15.2 89.8 36.9 % of December 31, 2012 total 97.0 79.4 93.5 120.7 Annualized net premiums are calculated by using multipliers for various premium payment terms to the premium per payment. In single premium contracts, the amount is calculated by dividing the premium by the duration of the policy. Annualized net premiums for medical and survival benefits include (a) premiums related to medical benefits such as hospitalization and surgery benefits, (b) premiums related to survival benefits such as specific illness and nursing benefits, and (c) premiums related to premium waiver benefits, in which disability cause is excluded but causes such as specific illness and nursing care are included. "New policies" include net increase by conversion. -2- The Dai-ichi Life Insurance Company, Limited
  4. 4. 2. Investment Results of General Account (1) Asset Composition (General Account) (millions of yen) As of March 31, 2013 Cash, deposits, and call loans Securities repurchased under resale agreements Deposit paid for securities borrowing transactions Monetary claims bought Trading account securities Money held in trust Securities Domestic bonds Domestic stocks Foreign securities Foreign bonds Foreign stocks and other securities Other securities Loans Policy loans Ordinary loans Real estate Real estate for rent Deferred tax assets Others Reserve for possible loan losses Total Foreign currency-denominated assets Carrying value 710,026 283,103 24,071 26,079,870 16,427,398 2,557,413 6,816,213 5,187,604 1,628,609 278,845 3,139,671 480,229 2,659,441 1,224,473 784,844 65,570 389,205 (4,109) 31,911,883 5,262,693 % 2.2 0.9 0.1 81.7 51.5 8.0 21.4 16.3 5.1 0.9 9.8 1.5 8.3 3.8 2.5 0.2 1.2 (0.0) 100.0 16.5 As of December 31, 2013 Carrying value 748,580 277,645 36,106 26,986,492 16,308,607 2,980,842 7,337,753 5,612,448 1,725,304 359,289 3,036,368 461,295 2,575,073 1,215,506 787,604 533,225 (1,769) 32,832,156 5,809,782 % 2.3 0.8 0.1 82.2 49.7 9.1 22.3 17.1 5.3 1.1 9.2 1.4 7.8 3.7 2.4 1.6 (0.0) 100.0 17.7 Note: 'Real estate' represents total amount of land, buildings and construction in progress. -3- The Dai-ichi Life Insurance Company, Limited
  5. 5. (2) Fair Value Information on Securities (General Account) (securities with fair value except for trading securities) (millions of yen) Book value Fair value Gains (losses) Gains As of March 31, 2013 Held-to-maturity bonds Domestic bonds Foreign bonds Policy-reserve-matching bonds Domestic bonds Foreign bonds Stocks of subsidiaries and affiliated companies Available-for-sale securities Domestic bonds Domestic stocks Foreign securities Foreign bonds Foreign stocks and other securities Other securities Monetary claims bought Certificates of deposit Money held in trust Others Total Domestic bonds Domestic stocks Foreign securities Foreign bonds Foreign stocks and other securities Other securities Monetary claims bought Certificates of deposit Money held in trust Others As of December 31, 2013 Held-to-maturity bonds Domestic bonds Foreign bonds Policy-reserve-matching bonds Domestic bonds Foreign bonds Stocks of subsidiaries and affiliated companies Available-for-sale securities Domestic bonds Domestic stocks Foreign securities Foreign bonds Foreign stocks and other securities Other securities Monetary claims bought Certificates of deposit Money held in trust Others Total Domestic bonds Domestic stocks Foreign securities Foreign bonds Foreign stocks and other securities Other securities Monetary claims bought Certificates of deposit Money held in trust Others Losses 142,267 95,131 47,135 10,499,119 10,499,119 27,669 12,759,745 5,416,478 1,606,888 5,266,542 4,725,795 540,746 168,842 265,993 35,000 23,428,801 16,010,728 1,606,888 5,339,695 4,772,931 566,763 170,495 265,993 35,000 - 147,965 99,341 48,623 11,705,797 11,705,797 34,541 14,335,428 5,833,147 2,250,276 5,743,653 5,140,468 603,185 190,247 283,103 34,999 26,223,733 17,638,286 2,250,276 5,825,213 5,189,092 636,121 191,853 283,103 34,999 - 5,698 4,210 1,487 1,206,678 1,206,678 6,872 1,575,683 416,669 643,387 477,111 414,672 62,438 21,404 17,110 (0) 2,794,931 1,627,557 643,387 485,517 416,160 69,357 21,358 17,110 (0) - 5,698 4,210 1,487 1,206,821 1,206,821 6,918 1,715,242 420,548 733,948 519,232 440,625 78,607 24,394 17,118 0 2,934,681 1,631,580 733,948 527,639 442,113 85,526 24,394 17,118 0 - 143 143 46 139,559 3,878 90,560 42,121 25,952 16,168 2,989 7 0 139,749 4,022 90,560 42,121 25,952 16,168 3,036 7 0 - 97,745 45,034 52,711 11,695,653 11,690,548 5,104 27,184 12,083,398 4,286,716 1,651,106 5,650,231 5,098,403 551,827 228,484 264,272 2,587 23,903,982 16,022,298 1,651,106 5,734,065 5,156,220 577,844 229,652 264,272 2,587 - 101,185 48,331 52,854 12,644,396 12,639,336 5,059 49,747 14,054,811 4,573,024 2,674,775 6,255,699 5,554,631 701,068 271,074 277,645 2,591 26,850,141 17,260,692 2,674,775 6,362,181 5,612,545 749,635 272,254 277,645 2,591 - 3,439 3,296 142 948,742 948,788 (45) 22,562 1,971,412 286,308 1,023,669 605,468 456,228 149,240 42,590 13,373 3 2,946,158 1,238,394 1,023,669 628,116 456,325 171,791 42,602 13,373 3 - 3,439 3,296 142 949,381 949,369 11 22,562 2,059,303 290,448 1,067,856 644,591 490,770 153,820 42,785 13,618 3 3,034,687 1,243,115 1,067,856 667,296 490,925 176,371 42,797 13,618 3 - 638 581 57 87,890 4,139 44,187 39,123 34,542 4,580 195 245 88,529 4,721 44,187 39,180 34,599 4,580 195 245 - Note: The table above includes assets which are considered appropriate to handle as securities as defined in the Financial Instruments and Exchange Law. -4- The Dai-ichi Life Insurance Company, Limited
  6. 6. * Carrying values of securities whose fair value is deemed extremely difficult to recognize are as follows: (millions of yen) As of March 31, 2013 Held-to-maturity bonds Unlisted foreign bonds Others Policy-reserve-matching bonds Stocks of subsidiaries and affiliated companies Unlisted domestic stocks (except over-the-counter stocks) Unlisted foreign stocks (except over-the-counter stocks) Others Available-for-sale securities Unlisted domestic stocks (except over-the-counter stocks) Unlisted foreign stocks (except over-the-counter stocks) Unlisted foreign bonds Others Total Note:1. 2. As of December 31, 2013 340,397 182,680 148,716 9,000 1,052,494 124,456 833,550 0 94,487 1,392,891 390,463 182,680 172,397 35,385 999,584 123,386 808,052 0 68,145 1,390,048 The table above includes assets which are considered appropriate to handle as securities as defined in the Financial Instruments and Exchange Act. The amounts of foreign exchange valuation gains (losses) on foreign securities whose fair value is deemed extremely difficult to recognize and which are listed in the table above are as follows: gain of 19,556 million yen as of March 31, 2013 and gain of 12,469 million yen as of December 31, 2013. (3) Fair Value Information on Money Held in Trust (General Account) (millions of yen) Carrying value on the balance sheet Fair value Gains (losses) Gains Losses As of March 31, 2013 24,071 24,071 6,783 9,666 2,883 As of December 31, 2013 36,106 36,106 3,843 8,855 5,012 Note: Fair value in the table above is based on the valuation conducted by the fiduciary on a reasonable basis. "Gains (losses)" include gains (losses) from derivative transactions within the trusts. * Information on money held in trust for investment purpose is as follows: (millions of yen) As of March 31, 2013 As of December 31, 2013 Valuation gains Valuation gains Carrying value on (losses) included in Carrying value on (losses) included in the statement of the statement of the balance sheet the balance sheet earnings Money held in trust for investment purpose 24,071 earnings 6,783 33,514 3,839 * Information on money held in trust classified as available-for-sale is as follows: (millions of yen) Fair value Book Value As of March 31, 2013 As of December 31, 2013 Gains (losses) Gains Losses - - - - - 2,587 2,591 3 3 - * Information on money held in trust classified as held-to-maturity and policy-reserve-matching: The Company had no balance as of March 31, 2013 or December 31, 2013. -5- The Dai-ichi Life Insurance Company, Limited
  7. 7. 3. Unaudited Quarterly Non-Consolidated Balance Sheet (millions of yen) As of March 31, 2013 As of (summarized) December 31, 2013 (ASSETS) Cash and deposits Call loans Monetary claims bought Money held in trust Securities [ Government bonds ] [ Local government bonds ] [ Corporate bonds ] [ Stocks ] [ Foreign securities ] Loans Policy loans Ordinary loans Tangible fixed assets Intangible fixed assets Reinsurance receivable Other assets Deferred tax assets Customers' liabilities for acceptances and guarantees Reserve for possible loan losses Reserve for possible investment losses Total assets 363,601 365,800 283,103 24,071 27,161,984 [ 14,323,032 ] [ 290,628 ] [ 2,137,606 ] [ 2,842,790 ] [ 7,165,487 ] 3,139,671 480,229 2,659,441 1,236,034 100,909 14,096 288,309 65,570 33,446 (4,109) 33,072,490 (LIABILITIES) Policy reserves and others Reserves for outstanding claims Policy reserves Reserve for policyholder dividends Reinsurance payable Subordinated bonds Other liabilities Corporate income tax payable Lease liabilities Asset retirement obligations Other liabilities Reserve for employees' retirement benefits Reserve for retirement benefits of directors, executive officers and corporate auditors Reserve for possible reimbursement of prescribed claims Reserve for price fluctuations Deferred tax liabilities Deferred tax liabilities for land revaluation Acceptances and guarantees Total liabilities (NET ASSETS) Capital stock Capital surplus Legal capital surplus Retained earnings Legal retained earnings Other retained earnings Fund for risk allowance Fund for price fluctuation allowance Reserve for tax basis adjustments of real estate Retained earnings brought forward Treasury stock Total shareholders' equity Net unrealized gains (losses) on securities, net of tax Deferred hedge gains (losses) Reserve for land revaluation Total of valuation and translation adjustments Subscription rights to shares Total net assets Total liabilities and net assets -6- 540,606 258,500 277,645 36,106 28,169,979 [ 14,306,062 ] [ 254,477 ] [ 2,081,498 ] [ 3,299,628 ] [ 7,761,404 ] 3,036,368 461,295 2,575,073 1,225,380 92,005 10,973 344,865 88,253 (1,769) (219) 34,078,695 29,168,377 138,570 28,637,045 392,761 727 154,584 1,413,825 56,612 7,545 2,855 1,346,811 437,514 2,327 700 88,453 94,842 33,446 31,394,799 29,641,234 136,419 29,112,523 392,291 585 160,256 1,531,501 40,189 6,331 2,826 1,482,154 413,926 2,175 473 102,453 24,049 94,449 88,253 32,059,358 210,207 210,207 210,207 216,541 5,600 210,941 43,120 65,000 20,838 81,982 (13,431) 623,524 1,092,583 (1,801) (36,995) 1,053,786 379 1,677,691 33,072,490 210,224 210,224 210,224 281,372 5,600 275,772 43,120 65,000 21,597 146,054 (11,983) 689,838 1,367,399 (3,645) (34,839) 1,328,914 583 2,019,336 34,078,695 The Dai-ichi Life Insurance Company, Limited
  8. 8. 4. Unaudited Quarterly Non-Consolidated Statement of Earnings Nine months ended December 31, 2012 3,037,632 2,114,206 [ 2,113,693 ] 738,118 [ 501,854 ] [ 515 ] [ 168,052 ] [ 43,643 ] 185,307 [-] 2,918,361 1,792,301 [ 573,240 ] [ 382,477 ] [ 384,418 ] [ 369,674 ] [ 81,504 ] 341,226 1,781 332,516 6,928 190,529 [ 14,089 ] [ 50,067 ] [ 53,427 ] [ 22,321 ] 295,915 298,389 119,271 4,944 4,944 21,366 4,467 2,899 14,000 59,799 43,050 38,381 (29,661) 8,719 34,330 ORDINARY REVENUES Premium and other income [ Premium income ] Investment income [ Interest and dividends ] [ Gains on money held in trust ] [ Gains on sale of securities ] [ Gains on investments in separate accounts ] Other ordinary revenues [ Reversal of reserves for outstanding claims ] ORDINARY EXPENSES Benefits and claims [ Claims ] [ Annuities ] [ Benefits ] [ Surrender values ] [ Other refunds ] Provision for policy reserves and others Provision for reserves for outstanding claims Provision for policy reserves Provision for interest on policyholder dividends Investment expenses [ Interest expenses ] [ Losses on sale of securities ] [ Losses on valuation of securities ] [ Derivative transaction losses ] Operating expenses Other ordinary expenses ORDINARY PROFIT EXTRAORDINARY GAINS Gains on disposal of fixed assets EXTRAORDINARY LOSSES Losses on disposal of fixed assets Impairment losses on fixed assets Provision for reserve for price fluctuations Provision for reserve for policyholder dividends Income before income taxes Corporate income taxes-current Corporate income taxes-deferred Total of corporate income taxes Net income for the period -7 - (millions of yen) Nine months ended December 31, 2013 3,268,457 2,100,954 [ 2,100,293 ] 929,552 [ 556,063 ] [ 7,470 ] [ 173,884 ] [ 175,904 ] 237,950 [ 2,151 ] 3,034,612 1,779,200 [ 531,391 ] [ 399,501 ] [ 341,523 ] [ 385,142 ] [ 120,688 ] 482,239 475,478 6,761 154,624 [ 14,532 ] [ 49,018 ] [ 806 ] [ 40,081 ] 302,505 316,041 233,844 2,346 2,346 28,905 1,154 13,751 14,000 70,278 137,007 85,680 (31,556) 54,124 82,882 The Dai-ichi Life Insurance Company, Limited
  9. 9. NOTES TO UNAUDITED QUARTERLY NON-CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE NINE MONTHS ENDED DECEMBER 31, 2013 I. NOTES TO UNAUDITED QUARTERLY NON-CONSOLIDATED BALANCE SHEET AND SHAREHOLDERS’ EQUITY, ETC. AS OF DECEMBER 31, 2013 1. Securities Lending Securities lent under lending agreements are included in the non-consolidated balance sheet. The total balance of securities lent as of December 31, 2013 was ¥1,255,512 million. 2. Changes in Reserve for Policyholder Dividends Changes in reserve for policyholder dividends were as follows: (Unit: million yen) Balance at the beginning of the fiscal year ending March 31, 2014................. Dividends paid……………………………………………………………….. Interest accrual………………………………………………………………... Provision for reserve for policyholder dividends ……………………………. Balance as of December 31, 2013………………………………………….... 392,761 (77,509) 6,761 70,278 392,291 II. NOTES TO THE UNAUDITED NON-CONSOLIDATED STATEMENT OF EARNINGS FOR THE NINE MONTHS ENDED DECEMBER 31, 2013 1. Net Income per Share Net income per share for the nine months ended December 31, 2013 was ¥83.59. Diluted net income per share for the same period was ¥83.54. The Company conducted a 1:100 share split on October 1, 2013. The above figures are calculated as if the Company conducted the split at the beginning of the nine months ended December 31, 2013. - 8- The Dai-ichi Life Insurance Company, Limited
  10. 10. 5. Breakdown of Ordinary Profit (Fundamental Profit) (millions of yen) Nine months ended December 31, 2012 Fundamental revenues Premium and other income Investment income [Interest and dividends] Other ordinary revenues Fundamental expense Benefits and claims Provision for policy reserves and others Investment expenses Operating expenses Other ordinary expenses 2,867,582 2,114,206 568,067 501,854 185,307 2,651,165 1,792,301 211,464 53,095 295,915 298,389 3,085,675 2,100,954 746,770 556,063 237,950 2,819,104 1,779,200 367,585 53,771 302,505 316,041 216,416 266,570 168,568 515 168,052 137,277 50,067 53,427 22,321 11,460 - 181,354 7,470 173,884 100,627 49,018 806 40,081 10,721 - B 31,291 80,726 A +B 247,707 347,297 1,482 1,482 129,918 18,000 8 111,909 1,427 1,427 114,879 18,000 5 96,874 (128,436) (113,452) 119,271 233,844 Fundamental profit A Capital gains Gains on money held in trust Gains on investments in trading securities Gains on sale of securities Derivative transaction gains Foreign exchange gains Others Capital losses Losses on money held in trust Losses on investments in trading securities Losses on sale of securities Losses on valuation of securities Derivative transaction losses Foreign exchange losses Others Net capital gains (losses) Fundamental profit plus net capital gains (losses) Other one-time gains Reinsurance income Reversal of contingency reserve Reversal of specific reserve for possible loan losses Others Other one-time losses Ceding reinsurance commissions Provision for contingency reserve Provision for specific reserve for possible loan losses Provision for specific reserve for loans to refinancing countries Write-down of loans Others Other one-time profits Ordinary profit Nine months ended December 31, 2013 C A +B +C Note: 1. For the nine months ended December 31, 2012, "Others" in "Other one-time losses" represents the sum of the amount of provision for reserve for possible investment losses (147 million yen) and the amount of the additional policy reserves provided (111,762 million yen) in accordance with Article 69, Paragraph 5 of the Enforcement Regulations of the Insurance Business Act. 2. For the nine months ended December 31, 2013, "Others" in "Other one-time losses" represents the sum of the amount of provision for reserve for possible investment losses (219 million yen) and the amount of the additional policy reserves provided (96,654 million yen) in accordance with Article 69, Paragraph 5 of the Enforcement Regulations of the Insurance Business Act. - 9 - The Dai-ichi Life Insurance Company, Limited
  11. 11. 6. Solvency Margin Ratio (millions of yen) As of March 31, 2013 Total solvency margin Common stock, etc. Reserve for price fluctuations Contingency reserve General reserve for possible loan losses Net unrealized gains on securities (before tax) × 90% *2 *2 Net unrealized gains (losses) on real estate × 85% Policy reserves in excess of surrender values Qualifying subordinated debt Excluded portion of policy reserves in excess of surrender values and qualifying subordinated debt Excluded items Others (R1 696,200 102,453 513,093 839 1,775,417 16,491 1,704,074 427,562 (386,388) (169,507) 130,548 1,309,453 83,359 165,873 259,875 990,432 4,551 30,081 715.2% *3 1,168,327 90,521 160,847 269,273 838,472 5,261 27,287 R1 R8 R2 R3 R7 R4 4,810,784 (411,842) (169,507) 92,446 (B) 2 2 R 8) +( R 2+ R 3+ R 7) R 4 + Insurance risk 3rd sector insurance risk Assumed investment yield risk Investment risk Guaranteed minimum benefit risk Business risk Solvency margin ratio (A) × 100 (1/2) × (B) 4,178,263 607,904 88,453 495,093 1,751 1,418,695 18,245 1,609,462 427,562 (A) *1 Total risk As of December 31, 2013 734.7% *1: Expected disbursements from capital outside the Company and valuation and translation adjustments are excluded. *2: Multiplied by 100% if losses. *3: Calculated by standard method. Note: The figures as of March 31, 2013 are calculated based on Articles 86, 87 of the Enforcement Regulations of Insurance Business Act, and Announcement No. 50, Ministry of Finance, 1996. The figures as of December 31, 2013 are calculated by using the method which is deemed appropriate taking the regulations and announcement above into account. -10- The Dai-ichi Life Insurance Company, Limited
  12. 12. 7. Status of Separate Account (1) Separate Account Assets by Product (millions of yen) As of As of March 31, 2013 December 31, 2013 Individual variable insurance 50,718 55,566 Individual variable annuities 143,755 128,981 Group annuities 1,036,304 1,084,948 Separate account total 1,230,778 1,269,495 (2) Sum Insured of Policies in Force of Individual Variable Insurance and Annuities (Separate Account) A. Individual variable insurance (millions of yen except number of policies) As of March 31, 2013 As of December 31, 2013 183 904 Number of policies 177 Individual variable insurance (whole life) 46,136 286,137 45,567 282,151 Total 46,319 287,041 45,744 283,029 Number of policies Individual variable insurance (term life) Amount Amount 877 Note: Policies in force include term life riders. B. Individual variable annuities (millions of yen except number of policies) As of March 31, 2013 Number of policies Individual variable annuities 36,424 As of December 31, 2013 Amount 132,371 Number of policies 31,164 Amount 120,073 Note: Sum insured of policies in force includes that of annuities for which payments have commenced. -11- The Dai-ichi Life Insurance Company, Limited
  13. 13. 8. Consolidated Financial Summary (1) Selected Financial Data and Other Information (millions of yen) Nine months ended December 31, 2012 Ordinary revenues 3,583,723 4,477,081 112,699 227,766 24,676 73,889 164,164 335,722 Ordinary profit Net income for the period Comprehensive income for the period As of March 31, 2013 Total assets Nine months ended December 31, 2013 35,694,411 Solvency margin ratio 702.4% As of December 31, 2013 37,444,635 721.4% (2) Scope of Consolidation and Application of Equity Method Nine months ended December 31, 2013 22 Number of consolidated subsidiaries 0 Number of non-consolidated subsidiaries accounted for under the equity method Number of affiliates accounted for under the equity method 32 For information regarding changes in subsidiaries and affiliates, please refer to "Guidelines for Preparation of Unaudited Quarterly Consolidated Financial Statements" (P.16). -12- The Dai-ichi Life Insurance Company, Limited
  14. 14. (3) Unaudited Consolidated Balance Sheet As of March 31, 2013 (summarized) ASSETS Cash and deposits Call loans Monetary claims bought Money held in trust Securities Loans Tangible fixed assets Intangible fixed assets Reinsurance receivable Other assets Deferred tax assets Customers' liabilities for acceptances and guarantees Reserve for possible loan losses Reserve for possible investment losses Total assets (millions of yen) As of December 31, 2013 457,517 391,200 285,082 56,251 29,390,963 3,140,990 1,236,270 215,457 32,861 390,844 67,636 33,446 (4,110) 35,694,411 LIABILITIES Policy reserves and others Reserves for outstanding claims Policy reserves Reserve for policyholder dividends Reinsurance payable Subordinated bonds Other liabilities Reserve for employees' retirement benefits Reserve for retirement benefits of directors, executive officers and corporate auditors Reserve for possible reimbursement of prescribed claims Reserve for price fluctuations Deferred tax liabilities Deferred tax liabilities for land revaluation Acceptances and guarantees Total liabilities NET ASSETS Capital stock Capital surplus Retained earnings Treasury stock Total shareholders' equity Net unrealized gains (losses) on securities, net of tax Deferred hedge gains (losses) Reserve for land revaluation Foreign currency translation adjustments Total accumulated other comprehensive income Subscription rights to shares Minority interests Total net assets Total liabilities and net assets -13- 659,102 288,500 283,687 62,850 31,094,569 3,037,788 1,225,650 199,400 34,294 470,789 1,738 88,253 (1,770) (219) 37,444,635 31,703,858 298,557 31,012,539 392,761 16,541 154,584 1,496,592 439,734 2,350 700 89,228 13,511 94,842 33,446 34,045,391 32,916,284 324,647 32,199,345 392,291 24,418 160,256 1,630,231 416,453 2,200 473 103,770 37,103 94,449 88,253 35,473,894 210,207 210,207 156,357 (13,431) 563,340 1,099,351 (1,801) (36,995) 18,229 1,078,784 379 6,514 1,649,020 35,694,411 210,224 210,224 212,384 (11,983) 620,851 1,370,506 (3,645) (34,839) 12,424 1,344,446 583 4,859 1,970,740 37,444,635 The Dai-ichi Life Insurance Company, Limited
  15. 15. (4) Unaudited Consolidated Statement of Earnings and Comprehensive Income [Unaudited Consolidated Statement of Earnings] Nine months ended December 31, 2012 3,583,723 2,551,942 837,662 [ 510,409 ] [ 10,930 ] [ 171,054 ] [ 118,019 ] 194,119 3,471,024 1,968,222 [ 596,267 ] [ 383,736 ] [ 408,080 ] [ 419,909 ] 647,067 33,932 606,206 6,928 201,646 [ 14,946 ] [ 13,018 ] [ 50,074 ] [ 53,427 ] [ 30,209 ] 345,099 308,987 112,699 4,946 4,945 1 21,662 4,478 2,899 14,285 0 59,799 36,185 41,575 (28,453) 13,122 23,062 1,613 24,676 ORDINARY REVENUES Premium and other income Investment income [ Interest and dividends ] [ Gains on investments in trading securities ] [ Gains on sale of securities ] [ Gains on investments in separate accounts ] Other ordinary revenues ORDINARY EXPENSES Benefits and claims [ Claims ] [ Annuities ] [ Benefits ] [ Surrender values ] Provision for policy reserves and others Provision for reserves for outstanding claims Provision for policy reserves Provision for interest on policyholder dividends Investment expenses [ Interest expenses ] [ Losses on money held in trust ] [ Losses on sale of securities ] [ Losses on valuation of securities ] [ Derivative transaction losses ] Operating expenses Other ordinary expenses Ordinary profit EXTRAORDINARY GAINS Gains on disposal of fixed assets Other extraordinary gains EXTRAORDINARY LOSSES Losses on disposal of fixed assets Impairment losses on fixed assets Provision for reserve for price fluctuations Other extraordinary losses Provision for reserve for policyholder dividends Income before income taxes and minority interests Corporate income taxes-current Corporate income taxes-deferred Total of corporate income taxes Income before minority interests Minority interests in loss of subsidiaries Net income for the period -14- (millions of yen) Nine months ended December 31, 2013 4,477,081 3,153,491 1,075,938 [ 569,032 ] [ 18,570 ] [ 181,935 ] [ 290,171 ] 247,650 4,249,315 2,128,592 [ 572,425 ] [ 400,728 ] [ 373,062 ] [ 520,735 ] 1,231,174 29,496 1,194,916 6,761 181,765 [ 15,253 ] [ 8,964 ] [ 49,133 ] [ 811 ] [ 54,518 ] 378,221 329,561 227,766 2,353 2,350 2 29,461 1,168 13,751 14,542 0 70,278 130,379 88,372 (30,588) 57,783 72,596 1,292 73,889 The Dai-ichi Life Insurance Company, Limited
  16. 16. [Unaudited Consolidated Statement of Comprehensive Income] Income before minority interests Other comprehensive income Net unrealized gains (losses) on securities, net of tax Deferred hedge gains (losses) Reserve for land revaluation Foreign currency translation adjustments Share of other comprehensive income of subsidiaries and affiliates accounted for under the equity method Comprehensive income for the period Attributable to shareholders of the parent company Attributable to minority interests -15- (millions of yen) Nine months ended Nine months ended December 31, 2012 December 31, 2013 23,062 72,596 141,101 263,125 134,192 271,384 (1,311) (1,843) (90) (32) 8,048 (8,527) 263 164,164 165,115 (950) 2,145 335,722 337,362 (1,640) The Dai-ichi Life Insurance Company, Limited
  17. 17. NOTES TO THE UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE NINE MONTHS ENDED DECEMBER 31, 2013 I. GUIDELINES FOR PREPARATION OF UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS As PT Panin Internasional and PT Panin Dai-ichi Life each became an affiliated company of the Parent Company, both companies were newly included in the scope of the equity method accounting of the Parent Company. PT Panin Dai-ichi Life changed its name from PT Panin Life on November 22, 2013. II. NOTES TO UNAUDITED QUARTERLY CONSOLIDATED BALANCE SHEET AND SHAREHOLDERS’ EQUITY, ETC. AS OF DECEMBER 31, 2013 1. Policy-Reserve-Matching Bonds In order to conduct appropriate duration control that accounts for the debt situation, and thus promote more sophisticated ALM, a certain subsidiary of the Parent Company added individual life insurance and individual annuity (yen-denominated, long-term) as a new sub-group of life insurance products subject to the application of policy-reserve-matching bonds, effective the three months ended June 30, 2013. As a result, the sub-groups of the subsidiary are: ● individual life insurance and individual annuity (yen-denominated, short-term), ● individual life insurance and individual annuity (yen-denominated, long-term), ● individual life insurance and individual annuity (U.S. dollar-denominated), and ● individual life insurance and individual annuity (Australian dollar-denominated), with the exception of certain types and contracts. This addition did not have any impacts on profits and losses for the nine months ended December 31, 2013. 2. Securities Lending Securities lent under lending agreements are included in the consolidated balance sheet. The total balance of securities lent as of December 31, 2013 was ¥1,265,879 million. 3. Changes in Reserve for Policyholder Dividends Changes in reserve for policyholder dividends were as follows: (Unit: million yen) Balance at the beginning of the fiscal year ending March 31, 2014………… 392,761 Dividends paid………………………………………………………………. (77,509) Interest accrual………………………………………………………………... 6,761 Provision for reserve for policyholder dividends ……………………………. 70,278 Balance as of December 31, 2013…………………………………………… 392,291 - 16 - The Dai-ichi Life Insurance Company, Limited
  18. 18. 4. Dividends on Common Stock Date of resolution June 24, 2013 (at the Annual General Meeting of Shareholders) Type of shares Common stock Total dividends ¥15,855 million Dividends per share ¥1,600 Record date March 31, 2013 Effective date June 25, 2013 Dividend resource Retained earnings Note: Total dividends don’t include ¥145 million of dividends to the Stock Granting Trust and the Trust-type Employee Stockholding Incentive Plan, as the Parent Company recognized the shares held by those trusts as treasury shares. III. NOTES TO UNAUDITED QUARTERLY CONSOLIDATED STATEMENT OF EARNINGS FOR THE NINE MONTHS ENDED DECEMBER 31, 2013 1. Calculation of Tax Income taxes of certain consolidated subsidiaries of the Parent Company are calculated by applying a reasonably estimated effective tax rate for the full fiscal year to income before income taxes for the nine months ended December 31, 2013. The effective tax rate is determined by estimating the effective tax rate for the full fiscal year, which includes the nine months ended December 31, 2013, after taking into account the effect of deferred tax accounting. 2. Net Income per Share Net income per share for the nine months ended December 31, 2013 was ¥74.52. Diluted net income per share for the same period was ¥74.48. The Parent Company conducted a 1:100 share split on October 1, 2013. The above figures reflect the split as if the Parent Company conducted the split at the beginning of the nine months ended December 31, 2013. 3. Depreciation and Amortization For the nine months ended December 31, 2013, (1) depreciation of real estate for rent and others totaled ¥ 11,052 million, (2) depreciation (including the depreciation of intangible fixed assets other than goodwill) totaled ¥ 28,918 million, and (3) amortization of goodwill was ¥ 3,272 million. - 17 - The Dai-ichi Life Insurance Company, Limited
  19. 19. (5) Consolidated Solvency Margin Ratio (millions of yen) As of March 31, 2013 Total solvency margin 2 2 R1 R 5 R8 R9 2 (114,141) 130,548 *3 94,424 174,462 268,796 30,221 954,611 30,450 702.4% R2 1,312,591 273,604 28,747 813,382 27,761 R4 R6 1,176,246 - 2 R1 R5 R6 R8 R9 R7 R3 R4 (520,328) 103,425 168,895 R 2 R3 R7 Insurance risk General insurance risk Catastrophe risk 3rd sector insurance risk Small amount and short-term insurance risk Assumed investment yield risk Guaranteed minimum benefit risk Investment risk Business risk Solvency margin ratio (A) × 100 (1/2) × (B) (B) 521,318 103,770 618,492 840 1,780,372 16,491 1,769,849 427,562 (68,999) 92,446 *2 Net unrealized gains on securities (before tax) × 90% Net unrealized gains (losses) on real estate × 85% *2 Policy reserves in excess of surrender values Qualifying subordinated debt Excluded portion of policy reserves in excess of surrender values and qualifying subordinated debt Excluded items Others 4,734,775 (550,006) Common stock, etc. Reserve for price fluctuations Contingency reserve Catastrophe loss reserve General reserve for possible loan losses 4,131,402 436,330 89,228 587,497 1,752 1,428,115 18,245 1,669,231 427,562 (A) *1 Total risk As of December 31, 2013 721.4% *1: Expected disbursements from capital outside the Company and accumulated other comprehensive income, etc. are excluded. *2: Multiplied by 100% if losses. *3: Calculated by standard method. Note: The figures as of March 31, 2013 are calculated based on Article 86-2 and 88 of the Enforcement Regulations of Insurance Business Act, and Notification of the Financial Services Agency No. 23, 2011. The figures as of December 31, 2013 are calculated by using the method which is deemed appropriate taking the regulations and announcement above into account. -18- The Dai-ichi Life Insurance Company, Limited
  20. 20. (6) Status of Insurance Claims Paying Ability of Insurance Subsidiaries (Solvency Margin Ratio) The Dai-ichi Frontier Life Insurance Company (millions of yen) As of March 31, 2013 Total solvency margin (R1 Insurance risk 3rd sector insurance risk Assumed investment yield risk Investment risk Guaranteed minimum benefit risk Business risk Solvency margin ratio (A) × 100 (1/2) × (B) - 46,798 60,650 5 4,330 18,611 22,493 1,363 25 8,920 25,241 24,721 1,767 938.6% R1 R8 R2 R3 R7 R4 44,214 1,317 105,399 1 4,898 65,774 - (B) 2 2 R 8) +( R 2+ R 3+ R 7) R 4 + 221,605 - * Net unrealized gains on securities (before tax) × 90% * Net unrealized gains (losses) on real estate × 85% Policy reserves in excess of surrender values Qualifying subordinated debt Excluded portion of policy reserves in excess of surrender values and qualifying subordinated debt Excluded items Others 219,637 57,269 775 92,403 1 9,420 59,768 - (A) Common stock, etc. Reserve for price fluctuations Contingency reserve General reserve for possible loan losses Total risk As of December 31, 2013 730.7% *: Multiplied by 100% if losses. Note: 1. The figures as of March 31, 2013 are calculated based on Articles 86 and 87 of the Enforcement Regulations of Insurance Business Act, and Announcement No. 50, Ministry of Finance, 1996. The figures as of December 31, 2013 are calculated by using the method which is deemed appropriate taking the regulations and announcement above into account. 2. Guaranteed minimum benefit risk is calculated by the standard method. (7) Segment Information The Company on a consolidated basis did not operate any businesses categorized in segments other than its own core life insurance business, and therefore segment information was omitted. -19- The Dai-ichi Life Insurance Company, Limited

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