Overview of Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | JAPAN POST INSURANCE Co.,Ltd. (7181) timely disclosure

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¥100 million

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Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 202711 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥13,643 100 million

Ordinary income¥692 100 million

Net income¥341 100 million

Results for the three months of the current quarter

Adjusted profit

¥366 100 million

Year on year against the same period last year+¥1.5 billion (+4.4%)

Number of new policies (individual insurance)

16.7 ten thousand items

Year on year against the same period last year+510,000 policies (+43.9%)

Value of new business

¥269 100 million

Year on year against the same period last year+¥13.5 billion (+101.1%)

Consolidated quarterly net income

¥341 100 million

Year on year against the same period last year-¥500 million

Full-year earnings forecast

Ordinary revenue

¥51,300 100 million

Ordinary income

¥2,500 100 million

Net income for the current fiscal year

¥1,410 100 million

Adjusted profit

1,550 Approximately ¥100 million

Underlying profit

3,800 Approximately ¥100 million

Insurance-related profit and loss

1,600 Approximately ¥100 million

Investment-related profit and loss

2,200 Approximately ¥100 million

Positive spread

2,700 Approximately ¥100 million

Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。

Ordinary revenue26.6%

Ordinary income27.7%

Net income for the current fiscal year24.2%

Adjusted profit23.7%

Underlying profit25.9%

Insurance-related profit and loss25.7%

Investment-related profit and loss26.1%

Positive spread26.0%

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Insurance-related profit and loss is broadly in line with plan, while investment-related profit and loss is ahead of plan

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Decrease in in-force policies and other factors-¥12.1 billion
Increase in the burden of additional standard policy reserves relating to the first year of new business-¥2.8 billion
Increase in business expenses and other costs-¥1.8 billion
Increase in dividends from alternative investments and other factors+¥15.0 billion
Decrease in interest and dividends on bonds and other securities-¥4.0 billion
Decrease in required interest+¥10.2 billion
Increase in provision for the catastrophe reserve-¥6.7 billion
Policy reserve adjustment+¥2.1 billion
Goodwill adjustment+¥400 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

10-year Japanese government bond yield (end of March 2027)2.58 %
US dollar hedging cost (end of March 2027)2.42 %
USD/JPY exchange rate¥150.7
Nikkei 225¥51,064
New business (individual insurance)80 Approximately 10,000 policies
Number of lapsed policies (individual insurance)140 Approximately 10,000 policies

New initiatives

Product revisions resulting from the May 2026 premium revisions and other changes
Change in the breakdown of core profit from the fiscal year ending March 2027, including the introduction of investment-related profit and loss
Increase in the total payout ratio and a policy of flexible share buybacks under the new medium-term management plan starting from the fiscal year ending March 2027

Key KPIsA metric the company considers important as a management benchmark.

Number of new policies (individual insurance)16.7 ten thousand items
Year on year against the same period last year+43.9%
Value of new business¥269 100 million
Year on year against the same period last year+101.1%
EV¥44,479 100 million
Year on year against the same period last year+4.5% from the end of the previous fiscal year
New business margin7.5 %
Year on year against the same period last year+2.8pt
Number of in-force policies (individual insurance)1,754.7 ten thousand items
Year on year against the same period last year-1.0% from the end of the previous fiscal year
Interest yield based on investment-related profit and loss2.22 %
Average assumed interest rate1.71 %
Duration (assets)8.4 Year
Duration (liabilities)9.6 Year

Medium-term management plan targets

TargetAdjusted profit
Target value¥1,900 100 million
Target fiscal yearFiscal year ending March 2029
TargetTotal Payout Ratio
Target value55 Approximately %
Target fiscal yearAverage for the fiscal years ending March 2027 to March 2029
TargetDividend per share
Target value62 Yen or more
Target fiscal yearFiscal year ending March 2029

Financial targets

Adjusted ROE

Actual results10.1% (fiscal year ended March 2026)

Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.

Approximately -¥5.0 billion
Risk50bp decline in domestic interest rates
Approximately -¥10.0 billion
Risk50bp increase in hedging costs
Approximately -¥20.0 billion
Risk10% appreciation of the yen against the relevant foreign currency
Approximately -¥10.0 billion
Risk10% cut in equity dividends

Annual Dividend

Forecast for the fiscal year ending March 2027

Annual50 Yen ¥150 before the stock split

Interim25 Yen ¥150 before the stock split

End of period25 Yen ¥150 before the stock split

Fiscal year ending March 2026

Annual41 Yen ¥124 before the stock split

Payout ratio

not disclosed (total payout ratio of approximately 55% on a medium-term average basis)

Acquisition of treasury shares

Acquisition amount¥44.9 billion (fiscal year ended March 2026)

Fiscal year ending March 2027No

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	¥13,643 100 million
Ordinary income	¥692 100 million
Net income	¥341 100 million
Results for the three months of the current quarter	Adjusted profit ¥366 100 million / Number of new policies (individual insurance) 16.7 ten thousand items / Value of new business ¥269 100 million / Consolidated quarterly net income ¥341 100 million
Full-year earnings forecast	Ordinary revenue ¥51,300 100 million / Ordinary income ¥2,500 100 million / Net income for the current fiscal year ¥1,410 100 million / Adjusted profit 1,550 Approximately ¥100 million / Underlying profit 3,800 Approximately ¥100 million / Insurance-related profit and loss 1,600 Approximately ¥100 million / Investment-related profit and loss 2,200 Approximately ¥100 million / Positive spread 2,700 Approximately ¥100 million
Progress against full-year forecast	Ordinary revenue 26.6% / Ordinary income 27.7% / Net income for the current fiscal year 24.2% / Adjusted profit 23.7% / Underlying profit 25.9% / Insurance-related profit and loss 25.7% / Investment-related profit and loss 26.1% / Positive spread 26.0%
Self-assessment against the plan	Insurance-related profit and loss is broadly in line with plan, while investment-related profit and loss is ahead of plan
Breakdown of Factors Affecting the Change	Factors Decrease in in-force policies and other factors / Amount -¥12.1 billion, Factors Increase in the burden of additional standard policy reserves relating to the first year of new business / Amount -¥2.8 billion, Factors Increase in business expenses and other costs / Amount -¥1.8 billion, Factors Increase in dividends from alternative investments and other factors / Amount +¥15.0 billion, Factors Decrease in interest and dividends on bonds and other securities / Amount -¥4.0 billion, Factors Decrease in required interest / Amount +¥10.2 billion, Factors Increase in provision for the catastrophe reserve / Amount -¥6.7 billion, Factors Policy reserve adjustment / Amount +¥2.1 billion, Factors Goodwill adjustment / Amount +¥400 million
Key KPIs	Indicator name Number of new policies (individual insurance) / Value 16.7 ten thousand items / Year on year against the same period last year +43.9%, Indicator name Value of new business / Value ¥269 100 million / Year on year against the same period last year +101.1%, Indicator name EV / Value ¥44,479 100 million / Year on year against the same period last year +4.5% from the end of the previous fiscal year, Indicator name New business margin / Value 7.5 % / Year on year against the same period last year +2.8pt, Indicator name Number of in-force policies (individual insurance) / Value 1,754.7 ten thousand items / Year on year against the same period last year -1.0% from the end of the previous fiscal year, Indicator name Interest yield based on investment-related profit and loss / Value 2.22 % / Year on year against the same period last year Not disclosed, Indicator name Average assumed interest rate / Value 1.71 % / Year on year against the same period last year Not disclosed, Indicator name Duration (assets) / Value 8.4 Year / Year on year against the same period last year Not disclosed, Indicator name Duration (liabilities) / Value 9.6 Year / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business Outlook	Item 10-year Japanese government bond yield (end of March 2027) / Value 2.58 %, Item US dollar hedging cost (end of March 2027) / Value 2.42 %, Item USD/JPY exchange rate / Value ¥150.7, Item Nikkei 225 / Value ¥51,064, Item New business (individual insurance) / Value 80 Approximately 10,000 policies, Item Number of lapsed policies (individual insurance) / Value 140 Approximately 10,000 policies
Risk amount incorporated into the outlook	Risk 50bp decline in domestic interest rates / Amount Approximately -¥5.0 billion, Risk 50bp increase in hedging costs / Amount Approximately -¥10.0 billion, Risk 10% appreciation of the yen against the relevant foreign currency / Amount Approximately -¥20.0 billion, Risk 10% cut in equity dividends / Amount Approximately -¥10.0 billion
Medium-term management plan targets	Target Adjusted profit / Target value ¥1,900 100 million / Target fiscal year Fiscal year ending March 2029, Target Total Payout Ratio / Target value 55 Approximately % / Target fiscal year Average for the fiscal years ending March 2027 to March 2029, Target Dividend per share / Target value 62 Yen or more / Target fiscal year Fiscal year ending March 2029
Financial targets	Adjusted ROE Actual results 10.1% (fiscal year ended March 2026) / Target Not disclosed
Annual Dividend	Forecast for the fiscal year ending March 2027 Annual 50 Yen (¥150 before the stock split) / Interim 25 Yen (¥150 before the stock split) / End of period 25 Yen (¥150 before the stock split) / Fiscal year ending March 2026 Annual 41 Yen (¥124 before the stock split)
Payout ratio	not disclosed (total payout ratio of approximately 55% on a medium-term average basis)
Acquisition of treasury shares	Acquisition amount ¥44.9 billion (fiscal year ended March 2026) / Fiscal year ending March 2027 No / Period Not disclosed
New initiatives	Product revisions resulting from the May 2026 premium revisions and other changes, Change in the breakdown of core profit from the fiscal year ending March 2027, including the introduction of investment-related profit and loss, Increase in the total payout ratio and a policy of flexible share buybacks under the new medium-term management plan starting from the fiscal year ending March 2027

Items this document does not state (12)

Operating profitGross Profit MarginOperating profit marginSelling, general and administrative expensesSegment resultsUnit price and quantity metricsNumber of stores and locationsNumber of employeesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Insurance-related profit declined owing to the decrease in in-force policies and other factors, but higher alternative investment dividends, lower required interest, rising interest rates and higher domestic share prices boosted profit and embedded value. The company explained that progress tends to be low in the first quarter because of seasonal factors, although investment-related profit and loss exceeded plan.

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