Deterioration in financial soundness due to rising new contract costs
First written in FY2019. 16 of 17 entries say "Mitigated", first in FY2020-Q1. Latest entry: FY2026.
0 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Using modified coinsurance reinsurance can mitigate the situation in which the costs associated with new business cause a sudden decline in accounting capital.」
The company continues to address the capital strain from new business costs through modified coinsurance reinsurance. Unamortized ceded commissions amounted to ¥7,466 million. - 2026-05-13MitigatedRevision of earnings forecasts
「Ordinary revenue in the non-consolidated results increased mainly because premium income rose as in-force policies grew, together with an increase in reinsurance income resulting from strengthened modified coinsurance reinsurance.」
The strengthening of modified coinsurance reinsurance, which had been positioned as a response to the capital burden associated with new-business costs, was reported as an achievement. - FY2025MitigatedAnnual report
「Improving financial condition by strengthening the use of modified coinsurance reinsurance」
The company strengthened its response to the capital pressure from new business expenses by entering into a new modified coinsurance reinsurance contract. - FY2023-Q3MitigatedAnnual report
「To achieve sustained strong growth in new business performance and maintain financial soundness, the company has conducted modified coinsurance reinsurance covering part of its new business since fiscal 2019, referred to below as ceded contracts. Modified coinsurance reinsurance transfers part of the risk and income-and-expense structure of ceded contracts to a reinsurer for a specified period. Using this reinsurance can mitigate the situation in which the costs associated with new business cause a sudden decline in accounting capital.」
The company continues to transfer part of the risk and income-and-expense structure to a reinsurer through modified coinsurance reinsurance, mitigating the sharp decline in capital caused by the pressure that new business expenses place on accounting capital. The balance of unamortized ceding commissions among reinsurance receivables was ¥4,229 million. - FY2023-Q2MitigatedAnnual report
「To achieve sustained strong growth in contract performance and maintain financial soundness, the company has conducted modified coinsurance reinsurance covering part of its new business since fiscal 2019, referred to below as ceded contracts. Modified coinsurance reinsurance transfers part of the risk and income-and-expense structure of ceded contracts to a reinsurer for a specified period. Using this reinsurance can mitigate the situation in which the costs associated with new business cause a sudden decline in accounting capital.」
The company continues to transfer part of the risk and income-and-expense structure to a reinsurer through modified coinsurance reinsurance, mitigating the sharp decline in capital caused by the pressure that new business expenses place on accounting capital. - FY2023-Q1MitigatedAnnual report
「As a result, during the cumulative first quarter, the reinsurance increased ordinary revenue by ¥1,324 million, compared with an increase of ¥956 million in the same period of the previous year, and increased ordinary profit and quarterly net profit by ¥199 million, compared with ¥206 million in the same period of the previous year.」
The company continues to mitigate the sharp decline in accounting capital caused by new business expenses through the effect of modified coinsurance reinsurance on retained earnings. - FY2022MitigatedAnnual report
「The company explained that, through the use of modified coinsurance reinsurance, retained earnings included in net assets reflect the effect of increasing retained earnings by the balance of unamortized ceding commissions, mitigating the sharp decline in capital.」
The company explained that the effect of modified coinsurance reinsurance continued to mitigate the sharp decline in capital caused by new business expenses through ¥3,657 million in unamortized ceding commissions. - FY2022-Q3MitigatedAnnual report
「The company explained that, through the use of modified coinsurance reinsurance, retained earnings included in net assets reflect the effect of increasing retained earnings by the outstanding balance of unamortized ceding commissions, mitigating the sharp decline in capital.」
The company explained that the effect of modified coinsurance reinsurance on retained earnings mitigated the sharp decline in capital caused by the pressure from new business expenses. The balance of unamortized ceding commissions was ¥3,406 million. - FY2022-Q2MitigatedAnnual report
「Of the ¥3,305 million in reinsurance receivables, the balance of unamortized ceding commissions related to modified coinsurance reinsurance was ¥3,149 million. The company explained that, through the use of modified coinsurance reinsurance, retained earnings included in net assets reflect the effect of increasing retained earnings by the balance of unamortized ceding commissions, mitigating the sharp decline in capital.」
The company explained that the balance of unamortized ceding commissions related to modified coinsurance reinsurance was ¥3,149 million and that the resulting effect on retained earnings mitigated the sharp decline in capital caused by new business expenses. - FY2022-Q1MitigatedAnnual report
「To achieve sustained growth in new business performance and maintain financial soundness, the company has conducted modified coinsurance reinsurance covering part of its new business since fiscal 2019, referred to below as ceded contracts. Modified coinsurance reinsurance transfers part of the risk and income-and-expense structure of ceded contracts to a reinsurer for a specified period. Using this reinsurance can mitigate the situation in which the costs associated with new business cause a sudden decline in accounting capital.」
The company continues to transfer part of the risk and income-and-expense structure through modified coinsurance reinsurance and mitigate the decline in capital caused by the pressure that new business expenses place on accounting capital. - FY2021-Q3MitigatedAnnual report
「The company explained that, through the use of modified coinsurance reinsurance, retained earnings included in net assets reflect the effect of increasing retained earnings by the outstanding balance of unamortized ceding commissions, mitigating the sharp decline in capital.」
The company explained that the effect of modified coinsurance reinsurance on retained earnings continues to mitigate the sharp decline in accounting capital caused by new business expenses. - FY2021-Q2MitigatedAnnual report
「The company explained that, through the use of modified coinsurance reinsurance, retained earnings included in net assets reflect the effect of increasing retained earnings by the outstanding balance of unamortized ceding commissions, mitigating the sharp decline in capital.」
The company explained that, in response to the capital pressure from new business expenses, the amount corresponding to unamortized ceding commissions was reflected in retained earnings through the use of modified coinsurance reinsurance, mitigating the sharp decline in capital. - FY2021-Q1MitigatedAnnual report
「The reinsurance increased ordinary revenue by ¥558 million, compared with an increase of ¥387 million in the same period of the previous year, and increased ordinary profit and quarterly net profit by ¥212 million, compared with ¥370 million in the same period of the previous year.」
The company continues to benefit from higher retained earnings and profit through modified coinsurance reinsurance, addressing the pressure that new business expenses place on accounting capital. The company did not state that the risk had disappeared. - FY2020-Q3MitigatedAnnual report
「This includes the effect of a ¥1,096 million increase in retained earnings from the use of modified coinsurance reinsurance, mitigating the sharp decline in capital.」
The company explained that although net assets declined from the end of the previous fiscal year due to the quarterly net loss, modified coinsurance reinsurance increased retained earnings by ¥1,096 million, mitigating the sharp decline in capital. - FY2020-Q2MitigatedAnnual report
「Net assets amounted to ¥10,768 million, down from ¥11,773 million at the end of the previous fiscal year, due to the recognition of an interim net loss. This includes the effect of a ¥743 million increase in retained earnings from the use of modified coinsurance reinsurance, which mitigated the sharp decline in capital.」
The company explained that although net assets declined due to the interim net loss, modified coinsurance reinsurance increased retained earnings by ¥743 million, mitigating the sharp decline in capital. - FY2020-Q1MitigatedAnnual report
「The company has conducted modified coinsurance reinsurance covering part of its new business since fiscal 2019. During the cumulative first quarter, ordinary revenue increased by ¥387 million, ordinary profit by ¥370 million and quarterly net profit by ¥370 million.」
Modified coinsurance reinsurance was implemented as a measure to address the capital pressure from new business expenses, and its effect in increasing revenue and profit was recorded during the first quarter. The company did not state that the risk had disappeared. - FY2019First statedAnnual report
「If a substantial increase in the number of new policies causes new business acquisition costs to rise, the company’s financial soundness may deteriorate.」
The company systematically identified higher acquisition costs accompanying new business growth, a decline in the solvency margin ratio and increased difficulty in strengthening capital as new risks relating to financial soundness.