Recurring-revenue platform based on in-force policies and renewal commissions

「During the fiscal year, after-sales support for customers transferred to the Company in the fiscal year ending November 2025 produced tangible results, including additional life insurance contracts and new contracts from existing non-life insurance policyholders.」

「This business is expected to be profitable from the first year based solely on renewal commissions from the insurance contracts transferred to us. In addition, opportunities to propose solutions that meet customers’ needs, including additional contracts, coverage reviews and financial planning, are increasing.」

「Renewal commissions represent stock revenue generated from in-force policies and support a stable revenue base.」

「Renewals and additional contracts for policies acquired in the fiscal year ended November 2024 are also increasing steadily and are a major growth driver.」

「During the fiscal year, the Company agreed to acquire 94,509 contracts from a total of 29 companies, substantially exceeding the 50,466 recorded in the previous fiscal year and the current-year target of 80,000. This is expected to generate future renewal commissions and help acquire life insurance contracts through cross-selling.」

「During the cumulative second-quarter period, the number of agreed acquisitions of non-life insurance contracts increased substantially, bringing the number of agreed acquisitions as of the end of May 2024 to 51,488, exceeding the total of 50,466 for the fiscal year ended November 2023. As non-life insurance contracts generate renewal commissions, or stock revenue, at a level comparable to initial contract commissions when they are renewed, they will contribute to future growth in non-life insurance revenue. In addition, cross-selling life insurance contracts and other financial products is expected to further increase revenue and profit.」

「The Company believes that this business not only generates renewal commissions from existing policies but also leads to new contracts from transferred customers, thereby helping to secure reliable profits.」

「Renewal commissions represent stock revenue generated from in-force policies and therefore provide a stable revenue base. The Company has built up its in-force policies by improving sales quality and providing after-sales support to existing customers. It will continue to focus on increasing its in-force policies.」

「For contracts and customers transferred to the Company through the acquisition of contracts, the Company clarifies the coverage required by reviewing the insurance coverage with customers and provides comprehensive consulting. This has improved customer satisfaction and contributed to acquiring additional new contracts.」

「For contracts and customers transferred to the Company through the acquisition of contracts, the Company strengthened customer engagement by making follow-up calls from its call center. Sales employees have also continued to provide after-sales support to existing customers as before, and these initiatives have contributed to the increase in additional new contracts.」

「Additional new contracts from existing customers totaled 16,181, an increase of 275 from the fourth quarter of the fiscal year ended November 2022. After-sales support for existing policyholders and acquired contracts and customers has led to additional new contracts.」

「Renewal commissions represent stock revenue generated from existing policies, which stood at approximately 1.19 million policies as of the end of November 2022, approximately 500,000 customers and annualized premiums in force of approximately ¥140.9 billion. They therefore form a stable revenue base. The Company has built up its in-force policies by improving sales quality and providing after-sales support to existing customers. It will continue to focus on increasing its in-force policies.」