Outline of Financial Results for

the Three Months Ended June 30, 2021

August 11, 2021

Summary of Financial Results

Ordinary Profit

Net income

Annualized

premiums from

New policies

Annualized

premiums from Policies in Force

EV

3 months ended

Jun-21

  • 92.0bn
  • 41.2bn

(Individual Insurance)

¥ 11.6bn

(Medical Care)

¥ 0.4bn

(Individual Insurance)

¥ 3,800.4bn

(Medical Care)

  • 657.5bn
  • 3,771.1bn

Year on Year

  • 22.1bn
  • 31.6 %
  • (5.5)bn (11.8) %
  • 5.6bn
  • 93.0 %
  • 0.2bn
  • 72.8 %
  • (97.6)bn (2.5) %
  • (11.5)bn (1.7) %
  • (255.0)bn (6.3) %

【Financial Highlights】 (Ref.P3)

  • Ordinary profit increased 31.6% year on year to ¥ 92.0billion due to an improvement in capital losses, despite a decrease in core profit as a result of a decrease in core profit attributable to life insurance activities reflecting a decline in policies in force, etc.
  • Capital gains are offset by the price fluctuation reserves. Thus, net income for the current period was ¥ 41.2billion, an 11.8 % decrease year on year.

【Policy Sales】 (Ref.P4)

  • As we have been resumed proactive proposals from April 1, 2021, annualized premiums from new policies for individual insurance in FY22/3 1Q were ¥ 11.6billion, a 93.0% increase year on year, while in FY21/3 1Q, it had decreased 93.5% compared with FY20/3 1Q due to the refraining from proactive sales proposal during that period.
  • Similarly, in FY22/3 1Q, annualized premiums from new policies for medical care were ¥ 0.4billion, a 72.8% increase year on year, while in FY2021/3 1Q, it had decreased 98.3% compared with FY20/3 1Q.

【Embedded Value】 (Ref.P10)

  • EV decreased by 6.3% from the end of the previous fiscal year to ¥ 3,771.1billion, mainly due to the decreases in net assets resulting from the acquisition of treasury stock worth
    ¥ 358.8billion in May 2021.

Copyright© JAPAN POST INSURANCE All Rights Reserved.

1

Financial Results for the Three Months Ended June 30, 2021 (Year on Year)

Statement of Income

3 months

3 months

ended

ended

Change

Jun-20

Jun-21

Ordinary income

1,696.3

1,665.1

(31.2)

Insurance premiums

712.8

644.0

(68.8)

and others

Investment income

260.7

280.9

20.2

Reversal of policy reserves

701.2

736.1

34.9

Ordinary expenses

1,626.4

1,573.0

(53.4)

Insurance claims

1,461.9

1,437.8

(24.1)

and others

Investment expenses

38.3

13.8

(24.4)

Operating expenses etc1

126.1

121.4

(4.7)

Ordinary profit

69.9

92.0

22.1

Extraordinary gains and losses

22.3

(18.9)

(41.3)

Reversal of reserve for price

22.3

(18.9)

(41.3)

fluctuations

Provision for reserve

20.4

15.4

(4.9)

for policyholder dividends

Total income taxes

25.2

16.5

(8.6)

Net income attributable

46.7

41.2

(5.5)

to Japan Post Insurance

Note: Only major line items are shown.

1. Sum of Operating expenses and Other ordinary expenses

(¥bn)

(Reference) Year ended Mar-21

6,786.2

2,697.9

1,121.6

2,895.4

6,440.4

5,866.0

70.8

503.5

345.7

(46.7)

(46.4)

65.4

67.4

166.1

Details of Ordinary Profit (Non-Consolidated)

(¥bn)

3 months

3 months

(Reference)

Change

Year ended

ended Jun-20

ended Jun-21

Mar-21

Core profit

110.4

102.5

(7.9)

421.9

Core profit attributable to

103.8

80.3

(23.4)

345.6

life insurance activities

Positive spread

6.6

22.1

15.4

76.3

Net capital gains (losses)

(38.2)

2.9

41.1

(17.1)

Other one-time profits (losses)

(2.6)

(13.7)

(11.1)

(59.8)

Ordinary profit

69.5

91.6

22.0

345.0

Copyright© JAPAN POST INSURANCE All Rights Reserved.

2

Factors for Year on Year Changes (Non-Consolidated)

  • Although positive spread increased, core profit fell below year on year to ¥ 102.5billion due to a decrease in core profit attributable to life insurance activities reflecting a decline in policies in force, etc.
  • Regarding capital gains or losses, we continued to adopt accounting treatments to provide or to reverse the price fluctuation reserves corresponding to the gain or loss amount. Net income decreased year on year to ¥ 40.8billion as a result of a decrease in core profit, etc.

(¥bn)

46.4

Consolidated:

46.7

Ordinary profit

91.6

+ 22.0

+41.1

(41.3)

Core profit 102.5

40.8

(7.9)

(5.5)

(23.4)

Consolidated:

+ 8.6

41.2

+ 15.4

(11.1)

+ 4.9

(＋) Decrease in operating expenses, etc.1

4.9

(－) Decrease in policies in force, etc.

18.9

(－) Influence of provisions2

9.4

3

Excess provision of

Provision for

price fluctuations

contingency reserve,

reserve, etc.

etc.

  1. "Decrease in operating expenses, etc." shows the difference of figures between FY21/3 1Q and FY22/3 1Q. This figure is calculated by adding up "Operating expenses" and "Other ordinary expenses". However, the impact of reserve for insurance claims and others, etc. have been adjusted through the item "Influence of provisions".
  2. Influence of reversal of reserve or provision for reserve for insurance claims and others, etc. on core profit attributable to life insurance activities based on the progress in the policy investigation and actual policy reinstatement. This includes the impact of reserve for insurance claims and others, etc. in FY21/3. (Amount of provision, etc. in FY22/3 1Q: ¥ 1.5billion, Amount of reversal, etc. in FY21/3 1Q: ¥ 7.9billion)
  3. For the Postal Life Insurance category, the Company accumulated additional policy reserves which were funded by contingency reserves at the end of March, 2021. With this operation, the Company also provided excess provision for contingency reserves in order to restore the level of them from the end of March 2021 onward.

Copyright© JAPAN POST INSURANCE All Rights Reserved.

3

Policy Sales 〔Annualized Premiums from New Policies〕

Annualized Premiums from New Policies

(Individual Insurance)

(¥bn)

Apr -Jun

Jul-Mar

160 .0

146.9

140 .0

53.3

120 .0

100 .0

93.5

80.0

60.0

40.0

30.6

11.6

20.0

24.5

+ 93.0 %

0.0

6.0

FY20/3

FY21/3

FY22/3

(¥bn)

25.0

20.0

15.0

10.0

5.0

0.0

Annualized Premiums from New Policies

(Medical Care)

Apr -JunJul-Mar

22.1

5.4

16.6

1.4

1.1

0.4

+ 72.8 %

0.2

FY20/3

FY21/3

FY22/3

Note1 : Annualized premiums are calculated by multiplying the amount of a single premium installment payment by a multiplier determined according to the relevant payment method to arrive at a single annualized amount. (For lump-sum payments, annualized premiums are calculated by dividing the total premium by the insured period.) Medical care corresponds to medical and living benefits, etc. Annualized premiums (individual insurance) include the premiums for medical care related to individual insurance.

Note2 : The figures for FY20/3 and FY21/3 include the influence by refraining from proactive sales proposal from mid-July 2019 and business suspension from January 2020 to March 2020.

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4

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Japan Post Insurance Co. Ltd. published this content on 11 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2021 06:05:10 UTC.