Earnings volatility due to liability reserve charges related to market price adjustments
First written in FY2020-Q2. 7 of 16 entries say "Worsened", first in FY2020. Latest entry: 2026-08-07.
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- 2026-08-07WorsenedEarnings presentation
「Provision for policy reserves and other items 1,939 124,981 Ordinary income 20,390 31,642」
At 第一フロンティア生命, the provision for policy reserves and other items increased from ¥1,939 million in the same period of the previous year to ¥124,981 million. Ordinary income increased from ¥20,390 million to ¥31,642 million, so the higher burden coexisted with improved profit. - FY2026WorsenedAnnual report
「Ordinary expenses increased mainly because higher sales volumes of yen-denominated products against the backdrop of rising yen interest rates, together with the yen's depreciation in the foreign exchange market, caused policy reserve reversals to turn into provisions. As a result, ordinary profit was ¥29.1 billion, down 41.6% year on year.」
At Dai-ichi Frontier Life, policy reserve reversals turned into provisions due to increased sales of yen-denominated products and the yen's depreciation. Provision for policy reserves and other reserves was ¥885.9 billion, and ordinary profit decreased 41.6%. - 2026-05-15WorsenedEarnings presentation
「Provision for policy reserves and other items 10,514 885,911 Ordinary income 49,943 29,186」
At 第一フロンティア生命, the provision for policy reserves and other items increased from ¥10,514 million to ¥885,911 million, while ordinary income declined from ¥49,943 million to ¥29,186 million. - FY2026-H1Increase in policy reserve provision and decrease in profitAnnual report
「Provision for policy reserves and other reserves increased against the backdrop of strong sales of yen-denominated products as yen interest rates rose. However, as described above, the decrease in surrender value payments due to fewer surrenders was the main factor behind the decrease. As a result, ordinary profit was ¥18.8 billion, down 30.8% year on year.」
At Dai-ichi Frontier Life, provision for policy reserves and other reserves increased from ¥1.5 billion to ¥260.8 billion as sales of yen-denominated products remained strong, and ordinary profit was ¥18.8 billion, down 30.8% year on year. - FY2025Lower policy reserve burden and return to profitabilityAnnual report
「Although provision for policy reserves and other reserves decreased substantially as policy reserves shifted from provisions to reversals, ordinary expenses edged up mainly because insurance claims and other payments increased due to higher surrender value payments accompanying an increase in surrenders and higher reinsurance premiums accompanying outward reinsurance. As a result, ordinary profit was ¥49.9 billion, up 137.2% year on year.」
At Dai-ichi Frontier Life, provision for policy reserves decreased substantially, and ordinary profit recovered to ¥49.9 billion. Meanwhile, the burden of surrender value payments and reinsurance premiums remained. - FY2025-H1Lower policy reserve burden and return to profitabilityAnnual report
「As described above, provision for policy reserves and other reserves decreased substantially as policy reserves shifted from provisions to reversals. However, ordinary expenses edged up, mainly because insurance claims and other payments increased due to higher surrender value payments accompanying an increase in surrenders and higher reinsurance premiums accompanying outward reinsurance.」
At Dai-ichi Frontier Life, provision for policy reserves and other reserves decreased substantially from ¥812.2 billion in the same period of the previous year to ¥1.5 billion, and ordinary profit shifted from a loss of ¥38.6 billion in the same period of the previous year to a profit of ¥27.2 billion. Meanwhile, the burden of payments due to higher surrender value payments and reinsurance premiums continued. - FY2024-Q3Narrower loss, while policy reserve burden continuedAnnual report
「Although provision for policy reserves and other reserves increased substantially due to higher provision for the contingency reserve accompanying strong sales of foreign-currency-denominated insurance, as well as an increase in policy reserves on a yen basis amid the yen's weakening trend in the foreign exchange market, ordinary expenses edged down, partly because insurance claims and other payments decreased following a sharp decrease from the previous year's surge in surrender value payments caused by an increase in policies reaching customers' target amounts.」
At Dai-ichi Frontier Life, the burden of adding to the contingency reserve and policy reserves continued amid strong sales, while ordinary loss narrowed from ¥22.6 billion in the same period of the previous year to ¥15.3 billion due to a decrease from the previous year's surge in surrender value payments. - FY2024-Q2WorsenedAnnual report
「Although provision for policy reserves and other reserves increased substantially due to higher additions to the contingency reserve and foreign-currency standard policy reserve resulting from strong sales of foreign-currency-denominated insurance, as well as an increase in policy reserves on a yen basis as the yen weakened in the foreign exchange market, ordinary expenses decreased mainly because insurance claims and other payments declined following a sharp decrease from the previous year's surge in surrender value payments, which had resulted from a substantial increase in policies reaching the target amounts set by customers. As a result, ordinary loss was ¥38.6 billion, compared with ¥11.4 billion in the same period of the previous year.」
At Dai-ichi Frontier Life, sales were strong, but provision for policy reserves and other reserves increased due to the burden of adding to the contingency reserve and foreign-currency standard policy reserve, among other factors. Ordinary loss widened from ¥11.4 billion in the same period of the previous year to ¥38.6 billion. - FY2024-Q1Increase in policy reserve provision and widening lossAnnual report
「The increase in ordinary expenses was mainly attributable to an increase in provision for policy reserves and other reserves. As a result, ordinary loss was ¥27.5 billion, compared with ¥24.6 billion in the same period of the previous year.」
At Dai-ichi Frontier Life, provision for policy reserves and other reserves increased to ¥529.6 billion, and ordinary loss widened from ¥24.6 billion in the same period of the previous year to ¥27.5 billion. - FY2022AdvancedAnnual report
「Net income attributable to owners of the parent increased substantially, in addition to growth in group adjusted profit, mainly due to temporary factors. Specifically, policy reserves related to market value adjustment (MVA) at Dai-ichi Frontier Life were reversed as overseas interest rates rose.」
Gains (losses) related to MVA at Dai-ichi Frontier Life improved as overseas interest rates rose, contributing to the recovery in profit in the domestic life insurance business. - FY2021-Q3Improvement in MVA gains (losses) and recovery in domestic life insurance profitAnnual report
「Ordinary revenue in the domestic life insurance business decreased by ¥151.0 billion from the same period of the previous year to ¥4,040.9 billion, down 3.6%, as premium and other income declined, mainly because insurance sales through financial institution counters decreased at Dai-ichi Frontier Life Insurance Co., Ltd. after a state of emergency was declared amid the spread of COVID-19. Segment profit increased by ¥51.0 billion to ¥252.8 billion, up 25.3%, mainly because gains (losses) related to market value adjustment (MVA) at Dai-ichi Frontier Life Insurance Co., Ltd. improved.」
Although sales at Dai-ichi Frontier Life continued to decline, segment profit in the domestic life insurance business increased 25.3% year on year, mainly due to improved gains (losses) related to market value adjustment (MVA). - FY2021-Q2Increase in policy reserve provision and improvement in earningsAnnual report
「Meanwhile, ordinary expenses totaled ¥828.9 billion, down 35.2% year on year, comprising insurance claims and other payments of ¥755.5 billion, down 22.9%; provision for policy reserves and other reserves of ¥49.3 billion, up 3,413.1%; investment expenses of ¥600 million, down 99.8%; operating expenses of ¥19.7 billion, down 38.8%; and other ordinary expenses of ¥3.6 billion, down 26.3%. The decrease in investment expenses was mainly attributable to foreign exchange losses turning into foreign exchange gains due to fluctuations in exchange rates.」
At Dai-ichi Frontier Life, provision for policy reserves and other reserves increased, while foreign exchange losses turned into foreign exchange gains, reducing investment expenses. Ordinary profit improved from a loss of ¥3.84 billion in the same period of the previous year to a profit of ¥3.0 billion. - FY2021-Q1Improvement in gains (losses) related to market value adjustmentAnnual report
「Segment profit increased by ¥11.6 billion from the same period of the previous year to ¥90.4 billion, up 14.8%, mainly because, while Dai-ichi Life Insurance Company, Limited incurred financial derivative expenses due to changes in the financial environment, gains (losses) related to MVA at Dai-ichi Frontier Life Insurance Co., Ltd. improved as overseas interest rates rose.」
Gains (losses) related to MVA at Dai-ichi Frontier Life improved as overseas interest rates rose, and segment profit in the domestic life insurance business increased 14.8% year on year. - FY2020Fiscal-year ordinary loss due to increased market value adjustment chargesAnnual report
「As a result, ordinary loss was ¥94.4 billion, compared with ordinary profit of ¥39.1 billion in the previous fiscal year. Net loss for the period was ¥100.0 billion, compared with net profit of ¥19.9 billion in the previous fiscal year.」
At Dai-ichi Frontier Life, charges related to market value adjustments arising from lower foreign-currency interest rates and other factors caused ordinary results to change from ordinary profit to ordinary loss, with the loss widening. - FY2020-Q3Increased market value adjustment charges and continuing ordinary lossesAnnual report
「In fact, provisions for policy reserves were recorded, and among these, the charge for policy reserves related to market value adjustments, which affects ordinary profit, increased as overseas interest rates declined. As a result, ordinary loss was ¥16.5 billion, down 168.9% year on year. Quarterly net loss was ¥20.8 billion, down 274.1% year on year.」
Charges for policy reserves related to market value adjustments continued to increase as overseas interest rates declined, resulting in ordinary loss of ¥16.5 billion and quarterly net loss of ¥20.8 billion at Dai-ichi Frontier Life. - FY2020-Q2First statedAnnual report
「In fact, provisions for policy reserves were recorded, and among these, the charge for policy reserves related to market value adjustments, which affects ordinary profit, increased as overseas interest rates declined. As a result, ordinary loss was ¥38.4 billion, compared with ordinary profit of ¥14.2 billion in the same period of the previous year. Interim net loss was ¥41.2 billion, compared with interim net profit of ¥6.4 billion in the same period of the previous year.」
As charges for policy reserves related to market value adjustments increased as overseas interest rates declined, Dai-ichi Frontier Life’s results changed from ordinary profit to ordinary loss compared with the same period of the previous year. This was recorded as a new fact.