Dai-ichi Life Holdings Inc (DLICY) Q3 2025 Earnings Call Highlights: Surpassing Profit ...
Release Date: February 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Dai-ichi Life Holdings Inc (DLICY) reported an adjusted profit of JPY359.6 billion for the third quarter, exceeding the full-year forecast of JPY340 billion.
The domestic business at Dailife saw profits exceed forecasts due to improved yields on bonds and risk assets, as well as faster-than-expected domestic equity sales.
The international business, including Protective and Tau, produced stable profits in line with plans, contributing to the group's overall profit exceeding forecasts.
The company raised its full-year profit forecast to JPY450 billion from JPY340 billion, a 20% increase, and increased the dividend per share (DPS) for March 2025 to JPY133 from JPY122.
Sales of new business products have been recovering well, with initiatives in place to further improve sales activities, particularly in small and medium-sized entities.
The international business achievement ratio was 78%, with some losses incurred due to a review of insurance assumptions and unlocking.
The extraordinary loss from the second carrier support system amounted to JPY29 billion.
Eligible capital declined due to shareholder returns and increased required capital from higher interest rates, leading to a lower ESR of 213%.
The sale of equity in some areas was less than expected, although offset by increases elsewhere.
The impact of mass lapse risks due to higher interest rates remains a concern, with ongoing analysis required.
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Q: Can you elaborate on the reasons behind the adjusted profit exceeding the full-year forecast? A: The adjusted profit for the third quarter was JPY359.6 billion, surpassing the full-year forecast of JPY340 billion. This was due to improved yields on EM bonds and risk assets, faster and larger domestic equity sales, and gains from redemption due to JPY depreciation. (Unidentified_1)
Q: How did the international business perform, particularly Protective and TAL? A: The international business, including Protective and TAL, produced stable profits in line with the plan. Protective focused on selling saving products, and TAL's sales exceeded the budget. Despite some challenges, the overall performance was stable. (Unidentified_1)
Q: What is the outlook for the full-year forecast and dividend per share (DPS)? A: The full-year forecast has been revised upward to JPY450 billion from JPY340 billion, a 20% increase. Consequently, the DPS for March 2025 is raised to JPY133 from the original forecast of JPY122. (Unidentified_1)
Q: Could you provide more details on the secondary career special support scheme? A: The application period for the secondary career special support scheme ended with 1,830 applicants, exceeding the target. The extraordinary loss from the scheme is around JPY29 billion. (Unidentified_1)
Q: What are the expectations for the new business value (VNB) for the domestic entities? A: For the three domestic entities, the VNB is expected to be JPY100 billion, driven by DH Life's recovery in product sales. Although sales for Dai Frontier and First were below expectations, they were offset by increased sales at D Life. (Unidentified_1)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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