Daiichi Life Group, Inc. (DLICY) Q1 2027 Earnings Call Prepared Remarks Transcript

Taisuke Nishimura
Executive Officer & Group CFO

Well, thank you very much for coming to our call. So today, we disclosed the first quarter results. So I’m going to give you some explanations on the results.

Please go to Page 3. So these are the main points for our results. Regarding the bottom line, Group adjusted profit is JPY 158.1 billion. It’s about JPY 84 billion higher than the number the previous year. The last year, due to the bond rebalancing, profit level was quite low. So we had 113% increase this year. And our progress rate for full year outlook is about 28%.

For Domestic Business, higher positive spread in DL and higher gain from sale of domestic equities drove the better results. Particularly because of the yen portfolio rebalancing, the Group’s fundamental earning power has been improving.

Now regarding the top line, Well, the Group’s new business ANP was JPY 135 billion, 6.7% higher compared to the same period of last year. If you exclude FX impact, that’s 3.9% increase. Sales in DL was steady and PLC’s retirement business saw outperforming fixed annuity sales, and TAL benefited from Group business contract renewals. And sales momentum for the Group as a whole is quite steady.

On the other hand, if you look at the value of new business for 3 domestic companies, Daiichi Life, the new business margin has been lower because of the inflation. So it resulted in lower results from the — or than the original estimate.

Now economic value. Group EV increased from the previous term. ESR-wise, because of the acquisition of the company portfolio and investment in M&G and also higher mass