Concentrated Spending on Operating Expenses and Declining Acquisition Efficiency
First written in FY2017. 3 of 9 entries say "Mitigated", first in FY2019. Latest entry: FY2026.
Lifenet Insurance Company moved to the "Worse" side of this theme in 2024, 3 years after the typical company in this theme (2021).
The whole theme swung hardest in 2018: 5 of 18 companies on the "Worse" side.
12 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Insurance acquisition cash flow efficiency per new policy decreased from ¥133,000 in the previous consolidated fiscal year to ¥120,000 in the current consolidated fiscal year.」
New-policy acquisition efficiency, which had deteriorated in the previous fiscal year, improved from ¥133,000 to ¥120,000. - 2026-05-13MitigatedEarnings presentation
「Insurance acquisition cash-flow efficiency improved by ¥13,000」
Insurance acquisition cash flow per new policy improved from ¥133,000 in fiscal 2024 to ¥120,000 in fiscal 2025, reducing the risk of deterioration in acquisition efficiency. - FY2025WorsenedAnnual report
「As another indicator, insurance acquisition cash flow efficiency per new policy, calculated by dividing insurance acquisition cash flow by the number of new policies in the individual insurance business, increased from ¥129,000 in the previous consolidated fiscal year to ¥133,000 in the current consolidated fiscal year.」
Insurance acquisition cash flow per new policy increased from ¥129,000 to ¥133,000, and the deterioration in acquisition efficiency continued. - FY2024MaterialisedAnnual report
「As a profitability measure, insurance acquisition cash flow efficiency increased from ¥105,000 in the previous consolidated fiscal year to ¥129,000 in the current consolidated fiscal year. Insurance acquisition cash flow efficiency declined because the acquisition of new policies did not progress as expected amid the continuing decline in demand for protection-oriented life insurance products following the subsiding of the COVID-19 pandemic, and because the Company made new sales investments to achieve further growth in its individual insurance business.」
The decline in new-policy acquisition efficiency was reflected in actual results, with insurance acquisition cash flow efficiency deteriorating from ¥105,000 to ¥129,000. - FY2023-Q3RestatedAnnual report
「Operating expenses amounted to ¥9,924 million, or 113.8% of the year-earlier level, due mainly to continued investment in sales expenses centered on advertising. Of operating expenses, sales expenses amounted to ¥6,424 million, or 109.6% of the year-earlier level, insurance administration expenses amounted to ¥1,107 million, or 116.1%, and systems and other expenses amounted to ¥2,392 million, or 125.4%.」
Continued investment in sales expenses centered on advertising resulted in operating expenses reaching 113.8% of the year-earlier level and sales expenses reaching 109.6%. - FY2022WorsenedAnnual report
「Operating expense efficiency increased from ¥66,000 in the previous fiscal year to ¥82,000.」
Operating expenses per new policy increased from ¥66,000 to ¥82,000, resulting in a deterioration in operating expense efficiency. - FY2019MitigatedAnnual report
「Operating expenses per new policy decreased from ¥67,000 in the previous fiscal year to ¥65,000, maintaining operating expense efficiency.」
The Company explains that, although annual operating expenses increased as a result of active investment in operating expenses, operating expenses per new policy decreased from ¥67,000 to ¥65,000. - FY2018MaterialisedAnnual report
「In the direct internet sales channel, acquisition efficiency for new policies did not improve as initially expected.」
The Company states that, despite actively investing in operating expenses, acquisition efficiency for new policies through direct internet sales did not improve as initially expected. - FY2017First statedAnnual report
「If the direction of sales activities is inappropriate, resulting in fewer new policies for a given level of investment, or if investment exceeding initial expectations is required to achieve a given number of new policies, the efficiency of sales activities may decline, adversely affecting the Company's performance.」
The Company identifies as a risk the decline in efficiency if sufficient new policies cannot be acquired despite investments in operating expenses such as advertising and agency commissions.